⚡ Indiana EV Tax Credits: What You Need to Know in 2025
As electric vehicles (EVs) become more common on Indiana roads, many residents are asking the key question: What Indiana EV tax credits are available in 2025? While the Hoosier State does not currently offer a state-level EV tax credit, there are still valuable incentives available through federal programs and utility companies.
In this guide, we’ll break down exactly what you can claim, how to apply, and how to maximize your EV savings in Indiana.
✅ Are There State-Level Indiana EV Tax Credits?
As of 2025, Indiana does not offer a state tax credit or rebate for the purchase or lease of an electric vehicle. However, this doesn’t mean Indiana residents are out of luck. Instead, EV owners can take advantage of:
- Federal EV tax credits
- Utility company EV charger rebates
- Federal home charger installation incentives
Let’s explore each opportunity in detail.
💰 Federal EV Tax Credits Available in Indiana
➡️The Federal EV Tax Credit expires September 30, 2025
Indiana residents are fully eligible for the federal Clean Vehicle Credit, which offers:
- Up to $7,500 for qualifying new EVs
- Up to $4,000 for eligible used EVs
To qualify for these Indiana EV tax credits, vehicles must meet key requirements:
| Credit Type | Requirements |
|---|---|
| New EV Credit | Final assembly in North America, MSRP limits, battery sourcing requirements, and income caps |
| Used EV Credit | Vehicle under $25,000, at least 2 years old, purchased from a dealer, and income limits apply |
➡️ Check if your EV qualifies here (IRS.gov)
🔌 Utility Company EV Charger Rebates in Indiana
Several Indiana utility providers are stepping up to support EV adoption with charger rebates and incentive programs. These offers can stack with federal tax credits.
🏠 Residential EV Charger Incentives
| Utility Provider | Rebate/Program Highlights |
|---|---|
| AES Indiana | $250 rebate for Level 2 charger; up to $50/year for managed charging |
| Carroll White REMC | 50% off charger cost (up to $300) + $150 EV registration rebate |
| Duke Energy Indiana | Up to $1,000 for residential charger installation (varies by area) |
| Indiana Michigan Power | Time-of-use plans and charger rebates |
These incentives help reduce the cost of home EV charging, which is crucial for maximizing the benefits of EV ownership.
⚙️ Home EV Charger Tax Credit (Federal)
Indiana EV drivers can also claim the federal Alternative Fuel Infrastructure Tax Credit, which provides:
- 30% off EV charger installation costs
- Up to $1,000 for residential users
- Commercial properties can claim up to $100,000 per location
✅ This credit applies to both equipment and labor costs, making home EV charging more affordable.
📌 How to Claim Your Indiana EV Incentives
- Check vehicle eligibility on the IRS or DOE site.
- Keep all receipts for charger purchase and installation.
- File IRS Form 8936 for the Clean Vehicle Credit.
- Apply through your utility company for local rebates.
- Consult a tax professional to ensure proper documentation and maximize your return.
💡 Tips to Maximize Indiana EV Tax Credits
- Pair federal EV tax credits with local utility rebates for maximum savings.
- Install a Level 2 home charger and claim both utility and federal incentives.
- Consider off-peak electricity plans to reduce charging costs long-term.
- Shop for eligible vehicles on platforms that filter by tax credit eligibility.
💵 If you’re exploring electric vehicles in Indiana, we recommend:
- ✅ Compare the best EV models eligible for the $7,500 credit
- ✅ Shop Level 2 EV chargers with built-in rebate support
- ✅ Download our free EV Buyer’s Checklist for Indiana
- ✅ Find professional EV charger installers near you
By leveraging Indiana EV tax credits, you could save $8,500 or more when combining federal, utility, and infrastructure incentives.
🛑 EV Fees to Be Aware of in Indiana
While Indiana offers helpful utility rebates, the state also imposes an annual EV registration fee, currently around $214–$221 per year for electric vehicles. This fee helps fund road maintenance and is in addition to standard registration costs.
🔚 Final Thoughts: Are Indiana EV Tax Credits Worth It?
Even without a dedicated state-level credit, Indiana EV tax credits still offer thousands in potential savings through federal and utility-backed programs.
From generous federal incentives to local utility rebates on EV chargers, 2025 is a smart time for Hoosiers to switch to electric.
