Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit



Description

Indiana has created a diverse set of business tax incentives designed to stimulate both growth and innovation.

The Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit is designed to foster job creation and higher wages in Indiana; reduce dependency upon energy sources imported into the United States; and reduce air pollution as the result of the manufacture or assembly of alternative fuel vehicles in Indiana.

This program provides a credit up to 15 percent, as determined by IEDC, of the qualified investment for the manufacture of alternative fuel vehicles. An applicant must compensate its employees at least 150 percent of the state’s hourly minimum wage and agree to maintain operations for at least 10 years. The Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit is established by IC 6-3.1-31.9.

Under the terms of the statute, qualified business investment for the manufacture of alternative fuel vehicles means the amount of a taxpayer's expenditures in Indiana that are reasonable and necessary for the manufacture or assembly of alternative fuel vehicles. "Alternative fuel vehicle" means any passenger car or light truck with a gross weight of eight thousand five hundred (8,500) pounds or less that is designed to operate on at least one alternative fuel.

What is Alternative Fuel?

For the purposes of this tax credit, alternative fuel is defined as:

  • methanol, denatured ethanol, and other alcohols
  • mixtures containing eighty-five percent (85%) or more by volume of methanol, denatured ethanol, and other alcohols with
    • gasoline or other fuel
    • natural gas
    • liquefied petroleum gas
    • hydrogen
    • coal-derived liquid fuels
    • non-alcohol fuels derived from biological material
    • P-Series fuels
    • electricity
    • biodiesel or ultra low sulfur diesel fuel