Powering The Midwest: The Indiana EV Incentives & Rebates 

There are only 10,360 EVs registered in Indiana. As there are 2,327,229 registered (private and commercial) vehicles in the state, the conversion to full electric and plug-in hybrid electric vehicles (PHEV) is 0.4% which is under half the national average.

At A Glance:

1️⃣ The absence of any meaningful state incentive scheme may be one of the reasons for this low count.

2️⃣ The state only offers indirect benefits through the utilities through TOU (Time of use) rebates if the EV owners recharge their vehicles during agreed times.

3️⃣ Applied Energy Services (AES) Indiana is the only utility that offers a discount rate to residential customers who install level 2 EV charging stations.

4️⃣ Utilities are also required to purchase excess power produced by solar systems.

Overview Of Indiana’s EV Incentives

Indiana’s qualifying residents can apply for a rebate from the IRS when they purchase or lease a new or used all-electric vehicle.

Indiana’s EV Incentives

Indiana offers no direct financial incentives to private users to switch their vehicle type to electric or plug-in electric vehicles.

However, they offer an extensive range of incentives for medium and heavy commercial vehicle operators to switch to alternative fuels and renewable energy sources.

The public utilities offer a range of incentives, as listed below:

Federal EV Subsidy Scheme

The government (through the IRS) allows a $7,500 ($4,000 on used EVs) tax rebate on a new EV purchased during the tax year. This is a rebate offset against tax payable. If there is no tax payable, there is no rebate.

📖 Read Next: How The EV Tax Credit Can Benefit You

The qualification criteria for eligible applicants are as follows:

1. The battery capacity must be at least 7 kWh.
2. The vehicle must weigh less than 14,000 pounds.
3. The vehicle must be manufactured by a qualifying company ( see list).
4. The final assembly is done in North America.
5. To qualify for the highest benefit level, the vehicle must be new.
6. The vehicle must cost less than $80,000 (this includes vans, SUVs, and pickups) and $55,000 for other vehicles.
7. The joint household income must be less than $300,000 ($150,000 for single filers).
8. The earning limits on used EVs are  $150,000 ($75,000 for single filers).

Currently, there is no end date published.

Federal Charger Station Subsidy

The Federal government has reinstated the federal tax credit for charger installation. As a result, taxpayers may qualify for a rebate of 30% of the cost of installing a charger (up to $1,000). This benefit expires on 12/31/2032.

If you are thinking of purchasing level 2 electric vehicle supply equipment, then read through the articles below, which cover the laws and incentives in greater detail:

💡 Related Articles:
The Federal EV Charger Tax Credit Explained
The Best Level 2 Home Chargers

Solar System Installation Benefits

The federal government and Indiana provide substantial benefits to taxpayers installing solar systems.

The Federal Solar Installation Benefit

Installing a solar system capable of powering a level 2 recharger is part of the possible financial benefits of converting to an electric vehicle.

In addition to the 30% ($1,000 max) rebate to install an EV charging station, the Federal government will also rebate 30% of the cost of a complete solar system installation. 

The benefit is available for all US residents who pay taxes.

This benefit expires in 2035.

Indiana’s Solar Installation Benefit

Indiana offers no direct financial incentive to citizens who install solar power systems. However, there are some “indirect benefits,” as listed below.

Property Tax Exception

Property taxes will not increase because a solar system was installed, and the home value has increased.

Net Metering

The utilities are required to buy back unused electricity generated by solar systems.

Sales Tax Exemption

No sales tax may be charged on solar electric generating equipment.

How To Take Advantage Of Indiana’s EV Incentives

The federal rebates are accessed by completing form 5695 and form 8834, including them with the IRS returns.

The Benefits of Indiana’s EV Incentives

Interestingly, Indiana offers a very limited financial incentive for residents to switch to EVs and install solar systems in their homes. The state has one of the lowest EV adoption rates in America.

While the country aims for a significant conversion rate to EVs, states like Indiana do not seem to have the same focus.  

In fact, rather than incentivizing the switch to EVs, the state penalizes new EV sales by charging an additional $150 registration fee over and above the fee of a gas-powered vehicle.

The Economic Benefits Of Supporting The Growth Of The EV Market In Indiana

Indiana seems to derive very little economic benefit from the EV market. 

The state does not seem to be trying to attract EV manufacturers. While it does offer some incentive for commercial vehicle operators, the number of these is so much smaller than gas-powered automobiles.

FAQs

How Much Does It Cost To Register A Tesla In Indiana? 

New electric vehicle owners must pay an extra 150 registration fee over and above the registration fee for a gas-powered vehicle. 

The increased fee is reduced to $50 for hybrid vehicles.

The only state that charges a higher fee for EV registrations is Georgia which charges $200.

The fee to register a Tesla in Indiana is calculated as follows.

• Normal Vehicle registration fee – $29.35
• EV supplemental fee – $150.00
• Personalized license plate – $45.00
• Infrastructure Improvement – $15.00

Total – $239.35

Is There An EV Tax Credit In Indiana? 

There is no direct EV tax credit in Indiana. The utilities offer a variety of rebates for customers who charge their vehicles at approved times.

In addition, the utilities will pay for excess power generated by their customers’ solar systems.

The only benefit is the tax rebate offered by the federal government. 

Key Takeaways

Indiana residents have no direct incentives to switch to an EV or install solar power.

1️⃣ The federal tax rebate is available that provides a substantial benefit.

2️⃣ The utilities will reduce the price of electricity during specific times when the system is not constrained or under pressure.

3️⃣ The result is that Indiana has a much lower conversion to EV rate than the national average.