Indiana Policy Data

Summary

Indiana has a decal registration-only requirement for AFVs.

Indiana offers several grant programs that include building infrastructure, and acquision/conversion of AFVs. The State also has a AFV manufacturer tax credit program intended to foster job creation.

The state has a requirement that all state agencies seek to acquire AFVs or convert existing vehicles to an alternative fuel.

Click here to download the state profile sheet.

Vehicles

Current Estimated Fleet-based NGVs in Indiana

~33

Vehicles by Fuel Type

Stations

Current Public NGV Fueling Stations - 26 CNG / 1 LNG

Private NGV Fueling Stations - 9 CNG / 1 LNG

Fuel Taxes

Indiana Motor Fuel Taxation Website

CNG - 16.0 ¢ / Gallon** - Reference

LNG -16.0 ¢ / Gallon**

Gasoline - 18.0 ¢ / Gallon - Reference

Diesel - 16.0 ¢ / Gallon

Indiana also imposes a 1.0 ¢ / Gallon Oil Inspection Fee on all motor fuels. - Reference

**Indiana has a decal registration-only requirement for AFVs.

IFTA - IFTA taxes are applied to vehicles of 3+ axles, or weighing more than 26,000 pounds. IFTA tax tables can be found here.

Incentives

Natural Gas Tax Credit

Effective January 1, 2014, a carrier operating a commercial natural gas vehicle (NGV) in Indiana may claim a credit equal to 12% of the road taxes imposed on its consumption of compressed natural gas in the previous year. The credit is refundable. (Reference House Bill 1324, 2013, and Indiana Code 6-6-4.1-1 and Indiana Code 6-6-12)

Community Alternative Fuel Vehicle (AFV) Fleet Grants

The Community Conservation Challenge (CCC) program, which the Indiana Office of Energy Development (OED) administers, offers grants ranging from $25,000 to $150,000 for community energy conservation efforts, including projects that deploy AFVs in fleets. Eligible entities include local governments, schools, businesses, universities, and nonprofit agencies. For more information, see the OED CCC website.

Diesel Vehicle Retrofit and Improvement Grants

The Indiana Department of Environmental Management (IDEM) administers two DieselWise Indiana grant programs to support projects that reduce diesel emissions. The Clean Diesel Across Northern Indiana program provides grants ranging from $25,000 to $200,000 for projects in the Gary, Hammond, Michigan City, South Bend, Elkhart, and Fort Wayne areas. The Clean Diesel Across Indiana program provides grants ranging from $10,000 to $75,000 for projects throughout the state. Eligible applicants include private and public entities that operate equipment serving the public, including private bus fleets and sanitation fleets. Eligible projects include replacing or converting a diesel vehicle or vehicle component with one that operates on alternative fuel, as well as installing exhaust retrofit technologies, idle reduction technologies, aerodynamic technologies, and low rolling resistance tires. For more information, see the IDEM DieselWise website.

Natural Gas Vehicle (NGV) Weight Exemption

Effective July 1, 2013, a NGV may exceed the state's gross vehicle weight limit by 2,000 pounds. (Reference - HB-1324 Bill Text, and Indiana Code 9-20-4-1)

Alternative Fuel Vehicle (AFV) Inspection and Maintenance Exemption

Dedicated AFVs are exempt from inspection and maintenance requirements if they operate exclusively on compressed natural gas, liquefied natural gas, propane, ethanol, hydrogen, or methanol. (Indiana Administrative Code 326 IAC 13-1.1)

Alternative Fuel Tax Exemption for Public Transportation

Effective January 1, 2014, alternative fuel purchased by a public transportation corporation to fuel a vehicle used for public transportation is exempt from the state gross retail tax until December 31, 2017. (Reference House Bill 1324, 2013, , and Indiana Code 6-2.5-5-27)

LDC/Utility / Private Incentives

Natural Gas Vehicle (NGV) Rebate

Citizens Gas & Coke Utility (Citizens) offers rebates for qualified compressed natural gas (CNG) vehicle conversions or for the purchase of an original equipment manufacturer dedicated or bi-fuel CNG vehicle. Used NGVs may also qualify. Rebates are available to fleet operators on a case-by-case basis. Citizens will examine each project on the merits of providing the rebate based on hours of operation or miles driven, per vehicle, per year.

Point of Contact
Lane Dunagin
Industrial Sales Consultant
Citizens Energy Group
Phone: (317) 694-2776
ldunagin@citizensenergygroup.com

Laws & Regs

Legislative Session Dates:	January 6 - March 13
Legislature Website:	http://iga.in.gov/

Special Fuel Tax

Effective January 1, 2014, certain special fuels sold or used to propel motor vehicles are subject to a license tax. Liquefied natural gas is subject to a tax of $0.16 per diesel gallon equivalent. Compressed natural gas, butane, and propane are subject to a tax of $0.16 per gasoline gallon equivalent. The tax does not apply to biodiesel blends of at least 20% (B20); special fuel used only for a personal, noncommercial use and not for resale; or biodiesel used by a biodiesel producer holding an exemption certificate. Other exemptions apply. (Reference House Bill 1324, 2013, and Indiana Code 6-6-2.5)

Alternative Fuel Motor Carrier Fuel Tax

Effective January 1, 2014, a person who operates a commercial motor vehicle on any highway in Indiana is subject to a tax on the consumption of motor fuel. The tax rate is $0.16 per diesel gallon equivalent for liquefied natural gas and $0.16 per gasoline gallon equivalent for compressed natural gas, butane, or propane. (Reference House Bill 1324, 2013, and Indiana Code 6-6-2.5) and Indiana Code 6-6-4.1-1)

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.

(Reference House Bill 1324, 2013, and Indiana Code 6-6-2.5) and Indiana Code 6-6-2.5-22)

Clean Vehicle Acquisition Requirements

Each state entity must purchase or lease a clean energy vehicle, unless the Indiana Department of Administration determines that the purchase or lease of the vehicle is inappropriate for its intended use, or the purchase or lease would cost 10% more than a comparable non-clean energy vehicle. Additional exemptions apply. A clean energy vehicle is defined as a vehicle that operates on one or more of the following energy sources: a rechargeable energy storage system; hydrogen; compressed natural gas (CNG); or liquefied natural gas (LNG). (Reference Indiana Code 5-22-5-8.5)

Certified Technology Park Designation

The Indiana Economic Development Corporation 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. (Reference Indiana Code 36-7-32)

Proposed Bills

2016 Session - Proposed Legislation

HB-1001

Amends tax provisions including motor fuel rates. Moves things around but does not appear to change CNG or LNG rates.Reference - HB1001 Bill History, Reference - HB1001 Bill Text Status: amended by Roads and Transportation Committee, assigned to Ways and Means on 1/21/16.

2015 Session - Proposed Legislation

HB-1001

Amends the Heavy Duty NG Truck tax incentive to make it retroactive for 2013 purchases. This provision needs to be reviewed more closely to understand the full impact (look to see what guidance is provided). Reference - HB1001 Bill History, Reference - HB1001 Bill Text Passed House and Senate as of 4/29/15; enacted 5/7/2015

HB-1094

Amends the motor fuel taxes to require that the motor carrier surcharge be paid at the same time the motor fuel or special fuel tax is paid. Previously surcharge was paid separately on a quarterly basis. Reference - HB1094 Bill History, Reference - HB1094 Bill Text Status: Pending: House Ways and Means Committee died in committee

HB-1227

Increases portion of sales tax on motor fuels that goes in the highway fund, and indexes the tax rate to inflation starting in 2018. Reference - HB1227 Bill History, Reference - HB1227 Bill Text Status: Pending: House Ways and Means Committee, died in committee

HB-1316

Authorizes grant program for natural gas school buses up to $5,000 per bus; repeals the current local government grant program, and makes changes to the general and specific service signs provided on highways in order to remove requirements relating to sanitary facilities, drinking water, and phones. Reference - HB1316 Bill History, Reference - HB1316 Bill Text Status: Pending: House Ways and Means Committee, died in committee

SB-199

Makes corrections to various statutes including the tax credits for alternative fuel vehicles and infrastructure. The changes do not appear to be significant. Although
note that previous definition and one still included is limited to compressed natural gas. Reference - SB199 Bill History, Reference - SB199 Bill Text Passed Senate 1/22/2015; passed House 3/10/2015; Enrolled 2015-05-04 - Public Law 109

SB-483

Similar to SB 348 also imposes fee on advanced technology vehicles. Reference - SB483 Bill History, Reference - SB483 Bill Text Status: Pending: Senate Homeland Security & Transportation Committee, died in committee

SB-488

Amends motor fuel tax so that current gross receipts tax does NOT apply to special fuel and instead imposes large surcharge (14 cents instead of 11 cents) on special fuel which includes diesel fuel, LNG and CNG. LNG rate is per DGE and CNG is per DGE. With this change the total tax on commercial carriers in IN would be 30 cents instead of 27 cents. Reference - SB488 Bill History, Reference - SB488 Bill Text Status: 25% progression, died in chamber

2014 Session - Proposed Legislation

HB-1448

Clarifies that the temporary imposition of the sales tax only applies to natural gas and not all alternative fuels. This sales tax applies to persons who use a motor vehicle to provide public transportation of persons or property. Further clarifies that the sales tax does not apply to public transportation corporations. This is the pay for provision for the incentives adopted in Indiana in 2013. Reference - HB1448 Bill History, Reference - HB1448 Bill Text Enacted 6/20/2014

HB-1104

Call for third party study alternative transportation funding mechanisms. Study shall also evaluate potential impact of these mechanisms on alternative fuel and advanced technology vehicles. Reference - HB-1104 Bill History, Reference - HB-1104 Bill Text Signed by Governor 3/27/2014

HB-1180

Makes changes to administration of the tax credit for natural gas powered vehicles (vehicles now must be purchased or leased from IN dealer). Other changes include limiting the revenues for NGV tax credits to gross retail and use taxes imposed on CNG and LNG. The filing requirements for motor carriers to receive the 12% credit against road taxes paid must be filed quarterly; this credit only applies to CNG. Not sure why LNG no also included in this provision. Removes antiquated restriction on operating compressed gas vehicles outside of city limits after dark. Reference - HB-1180 Bill History, Reference - HB-1180 Bill Text Signed by Governor 3/27/2014; PL No. 212.

HB-1266

Extends the Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit until end of
2021. Previously set to expire at end of 2016. Hoosier Tax provision removed
before enactment. Reference - HB-HB1266 Bill History, Reference - HB1266 Bill Text Enacted 3/26/2014

SB-367

Contains some of the same provisions found in HB 1180. Clarifies that NG is not
subject to the decal program starting in 2014 and that propane vehicles are covered
under the decal program.Reference - SB367 Bill History, Reference - SB367 Bill Text Enacted 3/27/2014

2013 Session - Proposed Legislation

HB-1324

Provides tax credit for 2014 - 2016 for heavy-duty natural gas vehicles above 33,000 lbs., at 50% of the incremental cost, or maximum of $18,000; individual taxpayers may claim no more than $180,000 in credits per year , imposes a total cap of $3.6 million per year for all credits and $10.8 million total for all years; also modifies the state excise tax so that CNG and LNG pay the special fuel tax ($0.16) based on a GGE basis. Motor carriers also pay the surcharge of $0.11 based on GGE basis. Repeals the decal tax for CNG and LNG vehicles after 7/1/2013 (3/31/14 for public utilities). Modifies the state obligations to purchase clean fuel vehicles by increasing from 10% to 20% to threshold for exemptions for vehicles that cost too much. It also increases the allowable weight for natural gas trucks by 2,000 lbs. Reference - HB-1324 Bill History, Reference - HB-1324 Bill Text Conference Committee; House and Senate agree to conference report 4/26/2013; Signed by the Governor 5/11/2013; Pub. L. No. 277-2013

HB-1545

Repeals the Hoosier Alternative Motor Vehicle Incentive Act as of Jan. 1, 2014; it appears the repeal provision was dropped by amendment. Reference - HB1545 Bill History, Reference - HB1545 Bill Text 2/25/2013 passed House; Senate adopted with amendments 4/4/2013; to Conference; Governor Signed 5/11/2013; PL 288-2013

SB-529

Relates to office of energy development; establishes the state Office of Energy Development within the Office of the Governor; provides that the director of the office is the chief energy officer of the state; provides that the office administers: the alternative fuel fueling station grant program; the alternative fuel vehicle grant program for local units; homes energy assistance and weatherization programs; the energy development Reference - SB529 Bill History, Reference - SB529 Bill Text Signed by Governor 4/8/2013

SB-560

Established Infrastructure Investment Zones. Provides property tax exemption for natural gas property including compressed natural gas equipment or liquefied natural gas equipment; appears to require ownership by a utility. Reference - SB560 Bill History, Reference - SB560 Bill Text Engrossed 3/14/2013; Passed House 3/19/2013 to Senate for concurrence; Signed by Governor 4/30/2013; Act No. 133-2013

SB-613

Amends the state motor fuel excise taxes as of July 1, 2013. Repeals the decal tax as of July 1,2013; for utilities the repeal data is 3/31/2014. This bill would adjust the excise taxes so that all alternative fuels are taxed on a gasoline gallon equivalent basis and it appears for the first time would subject alternative fuels to the 7% sales tax already in place for gasoline and diesel fuel that is applied in addition to the state motor fuel excise tax (7% is applied on cost of fuel less other taxes like federal & state tax). Also requires that price be posted in GGE units but provides exception if pumps are "for trucks only." This trucks only provision would appear to allow LNG to be sold in units other than GGE but tax would still be applied on GGE units of LNG. The excise tax rate on alternative fuels would be $0.18 per GGE; the gasoline tax in IN is $0.18. Reference - SB613 Bill History, Reference - SB613 Bill Text

This state was last examined and updated in October, 2016.