Business Incentives
Grants & Incentives
Skills Ennhancement Fund (SEF) SEF provides financial assistance to new and expanding companies committed to training their Indiana resident workforce. Eligible companies can receive reimbursement of up to 50% of eligible training cost. Indiana continues this commitment to training by allowing companies to re-apply for additional funds to retrain employees after a two year period.
Technical Enhancement Certification for Hoosiers (TECH Fund) The TECH Fund provides financial assistance to companies to assist with training their information technology (IT) workers. Eligible companies may receive reimbursement of up to $50,000, $2,500 per employee, or 50% of training costs, whichever is less. The program is administered on a reimbursement basis.
Economic Development for a Gowing Economy (EDGE) EDGE tax credits are based on the additional employee payroll withholdings for net new job creation in Indiana. The grant may be for a period of up to ten years. Credits are applied against the company's Indiana income tax liability and are refundable.
Industrial Development Grant Fund (IDGF) These grants help communities meet the public infrastructure needs of a new or expanding business. Assistance is available for publicly-installed infrastructure leading up to, but not onto, the company's property, except in the case of rail spurs and fiber optic cable.
Single Sales Factor Corporate Income Apportionment The five-year phase-in of a single sales factor for corporate income apportionment will eliminate the tax penalty associated with adding jobs and increasing investment in Indiana.
21st Century Research and Technology Fund The Indiana 21st Century Research and Technology Fund ("21 Fund") helps develop and commercialize advanced technologies in Indiana. Proposals are subject to a
review process in which the technology or science is reviewed by experts in the field and the commerical
viability of the proposal is evaluated.
Life Sciences R&D Growth Fund Indiana's $20 million Life Sciences Research and Development Growth
Fund provides grants to Indiana colleges and universities to support the recruitment and retention of world-
class scientists specializing in the life sciences.
Programs
Certified Technology Parks The Certified Technology Park program was created as a tool to support the attraction and growth of high-technology business in Indiana. Designation as a Certified Tech Park allows for the recapture of certain state and local revenue which can be invested in the development of the park.
Permitting Assistance The Indiana Economic Development Corporation (IEDC) can assist companies by serving as a liaison between the company and communities, local economic development organizations and regulatory agencies. The IEDC can also provide permit application assistance and tracking. This service is an effort to minimize the amount of time spent on regulatory compliance.
Regulatory Ombudsman The Indiana Economic Development Corporation's regulatory ombudsman assists in the process of obtaining the permits and approvals necessary for a business operation. The ombudsman serves as a liaison between companies, communities, local economic development organizations and regulatory agencies.
Small Business Development Center (SBDC) The mission of the Small Business Development Center ("SBDC") is to help Indiana businesses grow and create new jobs within the state. The SBDC provides free and low-cost information, management counseling, and educational services designed to support Indiana small business owners and potential entrepreneurs, including assistance with business plan development.
Shovel Ready Program In an effort to accelerate the timeframe in which new businesses can relocate to or expand in Indiana, the Shovel Ready program pre-permits Indiana locations for development.
Initiatives In addition to the grants, tax incentives, and services the IEDC offers generally, we are also focusing efforts on particular industries including:
- Life Sciences
- Advanced Manufacturing
- Agribusiness
- International Development
- Information Technology
- Logistics
- Insurance
- Motorsports
Tax Credits
Hoosier Business Investment Tax Credit (HBI) HBI tax credits are available to a company making a "qualified investment" in an Indiana facility. Generally speaking, a "qualified investment" includes new buildings, building improvements and equipment. The credit award may equal up to 10 percent of the qualified investments, and may be carried forward for up to nine years. The credit percentage and carry-forward term are determined by the IEDC on a case-by-case basis.
Venture Capital Investment Tax Credit (VCI) The Venture Capital Investment (VCI) Tax Credit is a non-refundable tax credit available to qualified applicants that provides investment captial to qualified Indiana businesses. The aggregate credit amount for a particular qualified is equal to the lesser of 20 percent of the qualified investment ro $500,000.
Research and Development Sales Tax Exemption This program provides a refund of 50 percent of the sales taxes paid on transactions involving research and development equipment acquired after June 30, 2005, and before July 1, 2007. This program will then exempt a person from 100 percent of the sales tax on research and development equipment acquired after June 30, 2007. This program will then exempt a business from 100 percent of the sales tax on research and development equipment acquired after June 30, 2007.
Research and Development Tax Credits For taxable years beginning after December 31, 2007, the qualified research expense credit will be increased from 10% to 15% on the first $1,000,000 of investment. The research expense credit may be carried forward for ten years.
Patent Income Exemption To spur additional patent activity, taxpayers are exempt from certain income derived from qualified utility and plant patents. Qualified taxpayers are eligible for an exemption of 50 percent of patent income for each of the first five years. The exemption percentage decreases over the next five years to 10 percent in the 10th year. The total amount of exemptions claimed by a taxpayer may not exceed $5 million per year. This benefit is available only to companies with 500 or fewer employees.
Hoosier Headquarters Relocation Tax Credit When a business that relocates its corporate headquarters (defined as the location of the principal office of the principal executives) to Indiana, it is entitled to a credit against its state tax liability equal to half of the costs incurred in relocating the headquarters. A company must have a worldwide annual revenue of at least $100 million to qualify.
Hoosier Altenative Fuel Vehicle Manufacturer Tax Credit 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.
Industrial Recovery Site Tax Credit (Dinosaur Building) Credits are available for rehabilitating buildings that have been empty for the previous two years that were in operation at least twenty years ago, and that have at least 250,000 square feet of interior space.
4/08