Indiana Laws and Incentives for Alternative Fuel Producer
The list below contains summaries of all Indiana laws and incentives related to Alternative Fuel Producer.
Ethanol Production Tax Credit
An ethanol producer located in Indiana is entitled to a credit of $0.125 per gallon of ethanol produced, including cellulosic ethanol. The Indiana Economic Development Corporation must review and approve applications for this credit. The credit granted to a single taxpayer may not exceed the following amounts for all taxable years:
|Tax Credit||Annual Production|
|$2 million||More than 40 million and less than 60 million gallons of grain ethanol|
|$3 million||At least 60 million gallons of grain ethanol||$20 million||At least 20 million gallons of cellulosic ethanol|
Any unused credit may be carried forward for the following taxable years. For more information, see the Indiana Department of Revenue Fuel & Environmental (Gasoline) Tax Forms website.
(Reference Indiana Code 6-3.1-28)
Biodiesel Production Tax Credit
A biodiesel producer located in Indiana may receive a credit of $1.00 per gallon of biodiesel produced and used in biodiesel blends. The Indiana Economic Development Corporation (IEDC) must review and approve applications for this incentive. The IEDC may approve up to $5 million in credits for a single producer for all taxable years. For more information, see the Indiana Department of Revenue Fuel & Environmental (Gasoline) Tax Forms website. (Reference Indiana Code 6-3.1-27-8)
Biodiesel Blending Tax Credit
A biodiesel blender located in Indiana may receive a credit of $0.02 per gallon of blended biodiesel produced at a facility located in Indiana. The Indiana Economic Development Corporation (IDEC) must review and approve applications for this incentive. The IEDC may grant a single taxpayer no more than $3 million total for all taxable years. For more information, see the Indiana Department of Revenue Fuel & Environmental (Gasoline) Tax Forms website. (Reference Indiana Code 6-3.1-27-9)
Biodiesel Blend Tax Exemption
Biodiesel blends of at least 20% (B20) that are used for personal, noncommercial use by the individual that produced the biodiesel portion of the fuel are exempt from the $0.16 per gallon license tax. The maximum number of gallons of fuel for which the exemption may be claimed is based on the percentage volume of biodiesel in each gallon used. For more information, see the Indiana Department of Revenue Fuel & Environmental (Gasoline) Tax Forms website. (Reference Indiana Code 6-6-2.5-1.5, 6-6-2.5-28, and 6-6-2.5-30.5)
Laws and Regulations
Alternative Fuel and Special Fuel Definitions
The definition of alternative fuel includes liquefied petroleum gas (propane), liquefied and compressed natural gas, and combinations of propane and compressed natural gas, not including biodiesel or biodiesel blends.
Special fuel is defined as all combustible gases and liquids that are suitable for powering an internal combustion engine or motor or are used exclusively for heating, industrial, or farm purposes. Special fuels include biodiesel, blended biodiesel, and other alternative fuels.
E85 is a fuel blend nominally consisting of 85% ethanol and 15% gasoline by volume that meets ASTM specification D5798. (Reference Indiana Code 6-6-1.1-103)
Biodiesel is defined as a renewable, biodegradable fuel derived from agricultural plant oils or animal fats that meet ASTM specification D6751. Blended biodiesel is a blend of biodiesel with petroleum diesel fuel so that the volume percentage of biodiesel in the blend is at least 2% (B2). (Reference Indiana Code 6-3.1-27-1, 6-3.1-27-2, and 6-6-2.5-1.5)
Certified Technology Park Designation
The Indiana Economic Development Corporation (IDEC) may designate an area as a certified technology park if certain criteria are met, including a commitment from at least one business engaged in a high technology activity that creates a significant number of jobs. The establishment of high technology activities and public facilities within a technology park serves a public purpose and benefits the public's general welfare by encouraging investment, job creation and retention, and economic growth and diversity. High technology activities include advanced vehicles technology, which is any technology that involves electric vehicles, hybrid electric vehicles, or alternative fuel vehicles, or components used in the construction of these vehicles. For more information, see the IEDC Indiana Certified Technology Parks website. (Reference Indiana Code 36-7-32)