East Central Indiana Incentives & Grants
The Economic Development for a Growing Economy (EDGE) Tax Credit provides incentive to businesses to support jobs creation, capital investment and to improve the standard of living for Indiana residents. The refundable corporate income tax credit is calculated as a percentage (not to exceed 100%) of the expected increased tax withholdings generated from new jobs created. The credit certification is phased in annually for up to 10 years based upon the employment ramp-up outlined by the business.
The Hoosier Business Investment (HBI) Tax Credit provides incentive to businesses to support jobs creation, capital investment and to improve the standard of living for Indiana residents. The nonrefundable corporate income tax credits are calculated as a percentage of the eligible capital investment to support the project. The credit may be certified annually, based on the phase-in of eligible capital investment, over a period of two full calendar years from the commencement of the project.
The Hoosier Business Investment Tax Credit for Logistics (HBI-L) provides incentive to businesses in support of certain eligible logistics investment. The non-refundable corporate income tax credits are calculated as a percentage (determined by the IEDC, not to exceed 25%) of the eligible logistics investment to support the project. The credit may be certified annually, based on the phase-in of eligible logistics investment, over a period of two full calendar years from the commencement of the project.
The Skills Enhancement Fund (SEF) provides assistance to businesses to support training and upgrading skills of employees required to support new capital investment. The grant may be provided to reimburse a portion (typically 50%) of eligible training costs over a period of two full calendar years from the commencement of the project.
The Industrial Development Grant Fund (IDGF) provides assistance to municipalities and other eligible entities with off-site infrastructure improvements needed to serve the proposed project site. Upon review and approval of the local recipient’s application, project specific milestones are established for completing the improvements. IDGF will reimburse a portion of the actual total cost of the infrastructure improvements. The assistance will be paid as each milestone is achieved, with final payment upon completion of the last milestone of the infrastructure project.
The Headquarters Relocation Tax Credit (HRTC) provides a tax credit to a business that relocates their headquarters to Indiana. The credit is assessed against the corporation’s state tax liability. The credit is up to 50 percent of a corporation’s approved costs of relocating its headquarters to Indiana, as determined by the IEDC. A nine year carry forward applies to any unused part of the credit.
The Industrial Recovery (DINO) Tax Credit provides an incentive for investment in former industrial facilities requiring significant rehabilitation or remodeling expenses. The credit is available to owners, developers, and certain lessees of buildings located in an industrial recovery site and placed in service at least 15 years ago. The buildings must have at least 100,000 interior square feet of space that is at least 75% vacant at the time that the application is made. Applications must demonstrate that the industrial facility would not be re-used without the credit.
The state of Indiana offers two tax incentives encouraging investments in research and development. Taxpayers may receive a credit against their Indiana state income tax liability calculated as a percentage of qualified research expenses. In addition, taxpayers may be refunded sales tax paid on purchases of qualified research and development equipment. The Indiana Department of Revenue oversees these incentive programs.
The Venture Capital Investment Tax Credit program improves access to capital for fast growing Indiana companies by providing individual and corporate investors an additional incentive to invest in early stage firms. Investors who provide qualified debt or equity capital to Indiana companies receive a credit against their Indiana tax liability.
Tax abatements are available for manufacturing, logistics and information technology equipment and for improvements to real estate. The term and percentage of the abatement is tied to capital investment, wages, and jobs.
Tax Increment Financing
The tax increment finance (TIF) mechanism in Indiana permits a town, city or county, through a local redevelopment commission, to designate targeted areas for redevelopment or economic development. Those areas can then be designated as “allocation areas” which triggers the TIF process. After such a designation is made, property taxes in the area rather than going to the normal taxing units can be set aside and invested back in the area to promote development. These property tax revenues can be leveraged by the issuance of TIF bonds, the proceeds of which also can be used to promote development in the area. Most TIF districts collect TIF only on real property. However, a Redevelopment Commission may designate taxpayers owning property within the TIF allocation as “designated taxpayers” for purposes of capturing TIF revenues on depreciable personal property.
The Certified Technology Park program was created as a tool to support the attraction and growth of high-technology businesses. Designation as a Certified Tech Park allows for the local recapture of certain state and local tax revenue which can be invested in the development of the park.
The Community Revitalization Enhancement District (CReED) Tax Credit provides an incentive for investment in community revitalization enhancement districts. The credit is available to taxpayers that make qualified investments for the redevelopment or rehabilitation of property located within a revitalization district. Only those projects that the Indiana Economic Development Corporation expects to have a positive return on investment will be considered.
General Purpose Grants
General purpose grants are offered to qualifying companies and can be used for any purpose related to the company’s investment and job creation including the purchase or lease of land or buildings, construction, utility connections, employee relocation, employee training and the purchase, transportation and installation of equipment. Specific grant requirements vary by community.