Green Driver State Incentives in IndianaPage Overview
- IN Emissions Test Exemptions for Fuel-Efficient Vehicles
- Auto Insurance Discounts for Eco-Friendly Driving and Green Vehicles
- Tax Incentives for Indiana Green Drivers
- Private Incentives for Indiana's Electric Vehicle (EV) Owners
- Indiana Gross Vehicle Weight Exemptions
- Rebates for Alternative Fuel Vehicle Owners
- Clean Transportation Grants
- Find a Nearby IN Emissions Testing Station
Indiana residents and businesses can take advantage of several state tax incentives, rebates, and exemptions. So, not only can going green help you downsize your carbon footprint; it can also help you save some time and a few bucks. For more on Indiana's green driver incentives, read on.
Understand that the state's green laws and incentives can change so bookmark this page, and also check with your local Bureau of Motor Vehicles (BMV) office and the Alternative Fuels Data Center for the latest.
As an incentive to encourage Indiana drivers to adopt greener driving habits, Indiana exempts the following vehicles from emissions testing:
- Electric vehicles (EV).
- Diesel-powered vehicles.
- Newer vehicles (4 newest model years).
Keep in mind that the Indiana Bureau of Motor Vehicles (BMV) only requires emissions tests in Lake and Porter Counties for the purposes of first-time vehicle registration and car registration renewal. For more on this requirement, consult our page on IN smog and emissions checks. Also consult the Clean Air Car Check site for full info on emissions test exemptions.
If your vehicle requires an emissions test, find a nearby station using the locator widget at the bottom of this page.
Some Indiana auto insurance providers offer insurance discounts for having green driving habits and/or driving a fuel-efficient vehicle. Consult your auto insurance company about potential green vehicle discounts such as:
- Hybrid auto discounts.
- Alternative fuel vehicle (AFV) discounts.
- Economy car discounts.
- Low-mileage discounts.
- Pay as you drive discounts.
Auto insurance discounts vary by provider and circumstances. For example, you might receive a 10% discount on car insurance for owning or leasing an alternative fuel vehicle, while maintaining low mileage can earn you up to a 30% auto insurance discount.
If your current IN auto insurance carrier doesn’t offer discounts for eco-friendly driving, find one that does. Compare auto insurance rates online and save some green for going green.
Indiana offers green-minded taxpayers numerous state tax breaks. However, most state-level perks apply to businesses. For example, carriers of commercial natural gas vehicles can take advantage of the IL natural gas tax credit while public transportation companies can benefit from alternative fuel tax exemptions. For more on tax credits and incentives for local businesses, visit theAlternative Fuel Data Center.
As an individual though, you might be eligible for a state tax credit when buying a natural gas vehicle (see below). However, you'll find the largest variety of credits exist at the federal level. Keep reading for details. And as always, be sure to check with your preferred tax professional or contact your local IRS Taxpayer Assistance Center for help.
Tax Credits for the Purchase of Natural Gas Vehicles (NGV)
Buying a natural gas vehicle might earn you a sizable state tax credit. To qualify, your NGV must:
- Operate on either compressed or liquid natural gas.
- Have a gross vehicle weight rating (GVWR) greater than 33,000 pounds.
- Have been put into service after December 31, 2013.
To calculate how much to claim, determine the lesser value:
- The price difference between the qualified vehicle and a similarly equipped vehicle (same make and model) that operates using a gasoline- or diesel-powered engine, multiplied by 50%.
Whether you are an individual, a corporation, a limited liability company, a partnership, or some other legal entity, you can claim up to $150,00 in tax credits per taxable year. Also note, you can carry forward unused credits for up to six consecutive taxable years.
This tax credit applies to taxable years starting January 1, 2014, and expires December 31, 2016. For full details on how to claim the credit, consult the Indiana Code (Title 6, Article 3.1, Chapter 34.6) and the Alternative Fuels Data Center.
Federal Tax Credits for Fuel-Efficient Vehicle Owners
There are a number of federal tax incentives for fuel-efficient vehicle owners, and you might qualify if you own any of the following vehicles:
- Plug-in hybrids (PEV).
- Electric cars (EV).
- Biodiesel vehicles.
- Alternative fuel vehicles (AFV).
For details on all qualifying eco-friendly vehicles, refer to the Tax Incentive Information Center of fueleconomy.gov.
Indiana residents who drive (or are interested in driving) electric vehicles should look into the following private incentives for additional ways to save money.
- Electric Vehicle Charging Incentives: NIPSCO's In-Charge Electric Vehicle Program helps reduce the cost and complexity of owning an electric vehicle.
- Reduced Plug-In Electric Vehicle (PEV) Charging Rates: Indianapolis Power and Light Company offers discounted charging rates for resident and fleet customers who own licensed PEVs.
- NGVs may exceed the state limit by 2,000 pounds.
- Heavy-duty, APU-equipped vehicles* may exceed the state limit by up to 400 pounds.
*Qualifying vehicles must be diesel-powered with a GVWR of more than 8,500 pounds.
Indiana's green-minded residents have a couple of options when it comes to rebates offered by the State and a private entity .
- E85 Fuel Use Incentive for Flexible Fuel Vehicles (FFV): This state incentive offers monthly payments to political subdivisions that purchase E85 for flexible fuel vehicles.
- Citizens Energy Group Rebate for Natural Gas Vehicles (NGV): This rebate—offered by Citizens Energy Group—deals with the conversion to (or purchase of) qualified compressed natural gas (CNG) vehicles or bi-fuel CNG vehicles.
Indiana offers grants to various business- and other green project-related endeavors.
- Alternative Fuel Vehicle (AFV) Fleet Grants (Community Conservation Challenge).
- Diesel Vehicle Retrofit and Improvement Grants.
- Alternative Fueling Station Grant Program.
- Alternative Fuel Vehicle Grant Program.
- Vehicle Research and Development Grants.
Get the details about these grants and whether they apply to your company or project at Indiana Laws and Incentives for Grants.
Remember, if the state requires your vehicle undergo a smog check, we can help you find a nearby testing facility.
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