Guide to Electric Vehicles in Indiana

As of June 2022, there were over 17,000 electric vehicles (EVs) registered in Indiana. While this may be just the beginning of the state's journey into electric car adoption, the momentum is undeniable.

Indiana is laying the groundwork for a brighter, electrified automotive landscape.

Read on to discover everything you need to know about electric vehicles in the Hoosier State. Discover more about registration fees, tax rebates and the number of electric car charging stations across Indiana. Get ready to go green with Hertz.

In this guide:

• How many EVs are there in Indiana?
• Are There Incentives for Electric Cars in Indiana?
• EV registration, licensing, and fees in Indiana
• Indiana EV charging network

How Many EVs Are There in Indiana?

Out of the approximately 6.5 million vehicles registered in Indiana in 2022, around 0.25% were fully electric and 1.68% were electric-gas hybrid. To put that into context, that’s equivalent to almost 125,000 hybrid and all-electric vehicles combined.

Know what's even more impressive? This number marks a 64% surge in alternative fuel vehicle registrations in Indiana since 2018. And if the state's projections hold true, 2023 promises an even greater influx of EVs on Hoosier highways.

Are There Incentives for Electric Cars in Indiana?

If you’re considering buying or leasing an electric vehicle, there’s no better time. Driving an electric car in Indiana opens up plenty of rewarding incentives including:

Federal Electric Tax Credit

•        Federal Electric Car Tax Credit - residential customers who purchase an EV may qualify for up to $7,500 federal electric car tax credit in Indiana.
•        Clean Vehicle Credit – provides customers with a tax credit of up to $4,000 for the purchase of a pre-owned EV.

For further information, or how to make a claim, check out our comprehensive EV tax credit guide.

Discounted Utility Rates

•        Applied Energy Services (AES) & Indiana Michigan Power (IMP) - offer a Time of Use (TOU) rate to residential customers who own a registered EV. TOU is the means of charging for energy consumption based on when/what time of day that energy is used.
•        Duke Energy – offers customers the option to rent a Level 2 EV charger for their home for a flat rate each month.

Home Charging Incentive

•        Indiana Michigan Power (IMP) – registered customers who enroll in the EV TOU rate may qualify for a $500 rebate. This is for the purchase of a Level 2 electric car charging station in Indiana, or the pre-wiring needed to support a Level 2 EV charging station.
•        Applied Energy Services (AES) – offers residential customers a $250 rebate for the purchase of a Level 2 EV charging station.

Everyday Perks

It’s not just tax credits and rebates you could benefit from. Owning or leasing an EV in Indiana means you can also benefit from everyday perks such as:

•        Reduced fuel costs – according to a 2020 study, EV drivers spend an average of 60 percent less each year on fuel compared to gas-powered drivers.
•        Free EV charging – complimentary electric car charging stations are available across Indiana. This includes key locations such as Indianapolis International Airport. However, these are based on a first-come, first-served basis.
•        HOV lane exceptions – in Indiana, EV drivers are permitted to use carpool lanes regardless of the number of passengers.

EV Registration, Licensing, and Fees in Indiana

When considering an EV, it’s important to look at the whole picture. Electric vehicles usually require different registration, licensing, and fees than gas-powered cars.

Annual Registration Fee

When registering a vehicle in Indiana, car owners must pay a $21.35 registration fee. However, all-electric car owners are required to pay an extra annual fee of $150. While hybrid vehicle owners are expected to pay a yearly fee of $50.

Vehicle Exercise Duty (VED)

Road tax, also referred to as Vehicle Exercise Duty Tax (VED) is calculated based on the tailpipe emissions of your vehicle. However, as electric vehicles don’t use gas, electric vehicle drivers are exempt from VED. Plug-in hybrid electric vehicles (PHEVs) pay a reduced rate.

Insurance Considerations

Typically, you can expect to pay more insurance for an electric vehicle than a regular gas-powered car. Due to their higher price tag and more complex equipment, they often cost more to repair and replace.

Indiana EV Charging Network

If you own an electric or plug-in hybrid vehicle, you’ll probably have a charging point at home. But what about if you’re renting an eco-friendly vehicle or heading on road a trip?

Not to worry. You’ll find more than 600 electric car charging stations in Indiana, including Level 2, Level 3, and DCFC charging points. Prices can vary, but you can refer to the Plug.Share website for a more detailed breakdown.

You can also use the ChargeHub map to locate the nearest charging points in your area.  

Additionally, Indiana has recently received federal approval to begin construction on a statewide charging network. Because of this, more electric vehicles are anticipated to hit the roads in the future. The state will invest around $100 million over the next couple of years to build out its fully electrified EV charging network.

Not sure how EV charging works? Learn everything you need to know about how to charge an EV.  

Let’s Go!

Indiana's embrace of the electric vehicle movement is more than just a trend—it's a commitment to a sustainable future. With a growing network of charging stations, enticing incentives, and the undeniable benefits of going green, the Hoosier State is setting the stage for an electrified journey on its roads.

Considering the switch to electric? Hertz offers a range of EVs for you to experience the future of driving firsthand. Whether you're a resident looking to make the transition or a visitor eager to explore Indiana with a minimal carbon footprint, we've got the perfect electric ride waiting for you.

Ready to embark on an eco-friendly adventure? Rent an EV with Hertz in Indiana today!