Indiana electrical license requirements and insurance
To work for yourself as an electrician in Indiana, you need the Master Electrical Contractor (Indianapolis) license. Indiana has 2 electrical license types, and which one you need depends on the work you take on. The state's minimum liability insurance is $500,000 for injury and $100,000 for property damage, and workers' comp is required as soon as you have an employee. The state does not ask for a bond.
1Who needs an electrical license in Indiana? What is this?
Master Electrical Contractor (Indianapolis): anyone who installs, alters, services or repairs electrical power systems in Indianapolis or Marion County. People who work for you do not need their own license if a license holder directs the work
| License | Who needs it | What it covers |
|---|---|---|
| Master Electrical Contractor (Indianapolis) | Anyone who installs, alters, services or repairs electrical power systems in Indianapolis or Marion County. People who work for you do not need their own license if a license holder directs the work | Unrestricted. It also lets you install and repair electric heating and cooling equipment, but not work on the refrigerant side |
| Residential Electrical Contractor (Indianapolis) | Anyone whose electrical work in Indianapolis stays on houses | One and two family homes only |
| Outside Indianapolis | Anyone doing electrical work anywhere else in Indiana | There is no state license. Fort Wayne, Evansville, South Bend and many other cities and counties run their own exams and licenses, and some places license nothing |
2Who issues electrician licenses in Indiana? What is this?
Indiana has no state electrical board. In Indianapolis and Marion County the Department of Business and Neighborhood Services licenses electrical contractors, with the Board of Electrical Examiners issues electrical licenses in Indiana.
See how this compares in every state: How to check a contractor's license, state by state
| Name | Indiana has no state electrical board. In Indianapolis and Marion County the Department of Business and Neighborhood Services licenses electrical contractors, with the Board of Electrical Examiners |
|---|---|
| Website | indy.gov |
| Look up a license | indy.gov |
| The law | Revised Code of the Consolidated City of Indianapolis and Marion County, chapter 875 |
| The rulebook | The yearly policies of the Board of Electrical Examiners |
| Does the state license this trade? | None. The city's own application says there is not a state electrical license, and that licensing is up to each local government |
3How to become an electrician in Indiana What is this?
Indiana has 3 licenses that matter to an electrician: Master Electrical Contractor (Indianapolis), Residential Electrical Contractor (Indianapolis), Outside Indianapolis. Each is below, with what you need before you apply.
| License | Experience required | Exam |
|---|---|---|
| Master Electrical Contractor (Indianapolis) | Six years, all of it to do with electrical power distribution systems. At least four years must be hands-on work. Up to two years can be schooling or a finished apprenticeship. You show the work with a signed and notarized employer letter giving start and end dates | Yes, an International Code Council exam on the 2023 National Electrical Code. You go before the Board of Electrical Examiners first, and you need 75 percent to pass |
| Residential Electrical Contractor (Indianapolis) | The same six years as the Master license. The board's policies set one experience rule for every applicant | Yes, the residential exam from the International Code Council. You need 75 percent |
| Outside Indianapolis | — | — |
4How much does an electrical license cost in Indiana? What is this?
The government fees on this page add up to about $377 in Indiana. Add insurance, tools, and a vehicle to get the real number.
| License | First license, company or partnership | First license, sole owner | Renewal, company or partnership | Renewal, sole owner |
|---|---|---|---|---|
| Master Electrical Contractor (Indianapolis) | $624 | $377 | $494 | $247 |
| Residential Electrical Contractor (Indianapolis) | — | — | — | — |
Added up
| Government fees, added up | $377 |
|---|
Indianapolis only, for a sole owner applying at the start of a license term. Apply later in the term and the fee falls to $283, then $189. A company or partnership adds the business license, up to $247. Does not include the exam, the $10,000 bond premium, insurance, tools, a vehicle, or permits
5How much electrical contractor insurance do you need in Indiana? What is this?
The least liability insurance Indiana lets an electrician work with is $500,000 for injury and $100,000 for property damage. Most customers ask for more. Workers' comp is required as soon as you have an employee.
| Minimum liability insurance | $500,000 |
|---|---|
| Minimum liability insurance (property damage) | $100,000 |
| Or one combined limit of | $500,000 |
| Type of policy | General liability. Either $500,000 per claim for injury or death plus $100,000 per claim for property damage, or one combined limit of $500,000 per claim |
| Who this applies to |
|
| Who must be named on the certificate |
|
| Workers' comp required? |
|
| Who can opt out |
|
| Workers' comp: what to know |
|
| Workers' comp: application fee | 20 |
| Workers' comp: if you skip it | Going without cover is a Class A misdemeanor under state law. A court can make you prove cover every six months for up to three years |
·8 official pages
- library.municode.com/in/indianapolis_-_marion_county/codes/code_of_ordinances
- us-east-1-indy.graphassets.com/ActDBC5rvRWeCZlNNnLrDz/cmg9so0p70arl07lkba5fee4q
- in.gov/wcb/independent-contractors
- forms.in.gov/Download.aspx?id=7134
- in.gov/dA/5e5d68c2f7/ICAEJul1.pdf
- codes.findlaw.com/in/title-22-labor-and-safety/in-code-sect-22-3-5-1/
- codes.findlaw.com/in/title-22-labor-and-safety/in-code-sect-22-3-6-1/
- codes.findlaw.com/in/title-22-labor-and-safety/in-code-sect-22-3-4-13/
6Does Indiana check your credit for an electrician license? What is this?
Indiana does not check your credit for this license.
| Credit score you need | None. The city code lists what an electrical contractor must file, and nothing on it is about your credit, your net worth or a financial statement |
|---|---|
| If your score is lower | Not needed. The city asks for insurance and a bond instead |
| How we know | Chapter 875, article II, was read section by section. It asks for the exam, the experience, the bond, the insurance and the fee, and nothing else about money |
7Does an electrician need a bond in Indiana? What is this?
Indiana does not require a state bond for this license. Some cities ask for one before they issue permits.
| Does the state require a bond? | No |
|---|---|
| Amount | Not listed yet |
| City rules |
|
The city may take an irrevocable letter of credit for $10,000 instead of a bond, if the controller approves your bank and the city lawyer approves the wording. Indiana has no state bond because it has no state license. Other cities and counties may ask for their own bond before you pull permits.
8Where must an Indiana electrician show the license number? What is this?
In Indiana: there is nothing to put anywhere. Indiana has no state license number for this trade, and the Indianapolis contractor chapter has no rule about showing a city number.
| The rule | There is nothing to put anywhere. Indiana has no state license number for this trade, and the Indianapolis contractor chapter has no rule about showing a city number |
|---|---|
| On ads | No rule found, in state law or in the city code |
| On your vehicles | No rule found, in state law or in the city code |
| On quotes, contracts, and invoices | No rule found, in state law or in the city code |
| City rules |
|
| If you forget |
|
9Does an electrician charge sales tax on labor in Indiana? What is this?
In Indiana, not taxed, as long as you write the installation labor on the invoice as its own line. The state says separately stated installation charges are left out of the taxable amount. The rest of the rules are below.
See how this compares in every state: Can you charge sales tax on labor? The rule in 25 states
| What this tax is | Indiana sales tax, which the law calls the state gross retail tax, and its partner the use tax. For a contractor, the kind of contract decides who pays tax on the materials |
|---|---|
| When you quote one total price | You pay the tax on wire, conduit, panels, breakers and fixtures, either when you buy them or as use tax when you install them. You do not add sales tax to the customer's bill |
| When you bill time and materials | The state treats you as a store selling the materials. You buy them tax free with your own exemption certificate, then charge the customer sales tax on the material part of the bill and send it to the state |
| Labor | Not taxed, as long as you write the installation labor on the invoice as its own line. The state says separately stated installation charges are left out of the taxable amount |
| Homes versus businesses | No difference. The rule turns on the kind of contract, not the kind of building |
| New buildings versus repairs | No difference. Both are treated the same, because improving a building and repairing one both count as turning materials into part of the building |
| Tax-exempt customers |
|
| Do you register to collect tax? | Yes, if you use time and material contracts. You need a Registered Retail Merchant Certificate, which you get by registering at inbiz.in.gov. You then file and pay through intime.dor.in.gov |
| Tax rate | 7 percent state |
10Getting paid: lien and notice deadlines for an Indiana electrician What is this?
If you are not paid in Indiana, a lien on the property is your backstop, but only if your notice goes out on time: for repairs or rewiring on a home the owner lives in, give the owner written notice within 30 days of your first day of work or first delivery (first day on March 1 means notice by March 31). The notice says what you supplied and that you have lien rights.
- Day 0Your first day on the job
The clock starts here.
- Day 30Send your notice
For repairs or rewiring on a home the owner lives in, give the owner written notice within 30 days of your first day of work or first delivery (first day on March 1 means notice by March 31). The notice says what you supplied and that you have lien rights
- Day 60File your lien
File a sworn statement that you intend to hold a lien with the county recorder. On a one or two family home or a townhouse you get 60 days after your last work (last day June 1 means file by July 31). On other property you get 90 days (last day June 1 means file by August 30)
Each day count is counted from the day the rule beside it names, which is not always the same day. Read the sentence under each one.
| Who has to send a notice | Anyone who supplies labor or materials on credit to a contractor or subcontractor, and not to the owner, on a one or two family home. If the owner who lives there hired you directly, this notice does not apply to you |
|---|---|
| Send your notice by | For repairs or rewiring on a home the owner lives in, give the owner written notice within 30 days of your first day of work or first delivery (first day on March 1 means notice by March 31). The notice says what you supplied and that you have lien rights |
| New buildings | On a new one or two family home the notice is due within 60 days of your first work or delivery (first day on March 1 means notice by April 30). A copy is filed with the county recorder in the same 60 days |
| File your lien by |
|
| Copy to the owner | You file two copies. The recorder mails one to the owner within three business days and charges you $2 for it |
| File a lawsuit by | You must sue to collect within one year of the day the lien statement was recorded |
| Homes the owner lives in | A person who buys a new one or two family home to live in, in good faith, is protected. Your lien does not reach that home unless your notice was recorded before their deed |
| Who can file a lien | Contractors, subcontractors, mechanics, laborers and suppliers of materials or machinery |
11How do you renew an electrical license in Indiana? What is this?
The Master Electrical Contractor (Indianapolis) renews every two years. Every license runs out on 31 December of an odd year.
| License | Renewal |
|---|---|
| Master Electrical Contractor (Indianapolis) | Every two years. Every license runs out on 31 December of an odd year |
| Residential Electrical Contractor (Indianapolis) | Every two years, ending 31 December of an odd year |
Renewal fees are in what the license costs. The official page for each license is linked under how you get it.
12What catches people out in Indiana What is this?
The things people get wrong or do not expect about Indiana, in a few sentences.
- The City of Indianapolis puts it in one line on its own form. There is not a state electrical license, and each local government decides for itself.
- Indianapolis wants six years of electrical construction work before you can sit the Master exam. College courses or a finished apprenticeship can stand in for two of them at most.
- The Indianapolis pass mark is 75 percent on an International Code Council exam. If you have not passed within six months of the board's approval, you wait a year from that approval.
- An Indianapolis electrical contractor posts a $10,000 bond, twice what the city asks of an HVAC contractor. The liability insurance is the same $500,000 for both.
- Low voltage work is left out in Indianapolis. Wiring under 25 volts and 50 watts, such as data cabling and security cameras, needs no electrical license, but fire alarms still do.
- You may wire your own house in Indianapolis. If the job needs a permit, you pull it yourself and the board must first agree in writing that you know enough to do the work.
·4 official pages
- library.municode.com/in/indianapolis_-_marion_county/codes/code_of_ordinances
- us-east-1-indy.graphassets.com/ActDBC5rvRWeCZlNNnLrDz/cmk19purp4m4d07k78q21ap9w
- us-east-1-indy.graphassets.com/ActDBC5rvRWeCZlNNnLrDz/cmg9so0p70arl07lkba5fee4q
- us-east-1-indy.graphassets.com/ActDBC5rvRWeCZlNNnLrDz/cmg9so0q30ajx07jxcx9ut254
13Where these numbers come from
The labels under each table are explained on how to read a page.
- library.municode.com/in/indianapolis_-_marion_county/codes/code_of_ordinances
- us-east-1-indy.graphassets.com/ActDBC5rvRWeCZlNNnLrDz/cmk19purp4m4d07k78q21ap9w
- indy.gov/activity/contractor-licenses
- us-east-1-indy.graphassets.com/ActDBC5rvRWeCZlNNnLrDz/cmg9so0p70arl07lkba5fee4q
- in.gov/wcb/independent-contractors
- forms.in.gov/Download.aspx?id=7134
- in.gov/dA/5e5d68c2f7/ICAEJul1.pdf
- codes.findlaw.com/in/title-22-labor-and-safety/in-code-sect-22-3-5-1/
- codes.findlaw.com/in/title-22-labor-and-safety/in-code-sect-22-3-6-1/
- codes.findlaw.com/in/title-22-labor-and-safety/in-code-sect-22-3-4-13/
- in.gov/dor/files/sib60.pdf
- codes.findlaw.com/in/title-6-taxation/in-code-sect-6-2-5-4-9/
- codes.findlaw.com/in/title-6-taxation/in-code-sect-6-2-5-3-2/
- codes.findlaw.com/in/title-6-taxation/in-code-sect-6-2-5-2-2/
- codes.findlaw.com/in/title-32-property/in-code-sect-32-28-3-1/
- codes.findlaw.com/in/title-32-property/in-code-sect-32-28-3-3/
- codes.findlaw.com/in/title-22-labor-and-safety/in-code-sect-22-12-1-5/
- codes.findlaw.com/in/title-32-property/in-code-sect-32-28-3-6/
- us-east-1-indy.graphassets.com/ActDBC5rvRWeCZlNNnLrDz/cmg9so0q30ajx07jxcx9ut254