Indiana Incentives
The State of Indiana has an array of incentives to offer growing businesses. The Indiana Economic Development Corporation and the Indiana Department of Workforce Development are two primary agencies serving Indiana companies.
Indiana Economic Development Corporation
The Indiana Economic Development Corporation (IEDC) is the State of Indiana's lead economic development agency. IEDC was officially established in February 2005 to replace the former Department of Commerce. In order to respond quickly to the needs of businesses, IEDC operates like a business.Indiana Department of Workforce Development
Indiana Department of Workforce Development (IDWD) manages and implements innovative employment programs for Hoosiers, unemployment insurance systems, and facilitates regional economic growth initiatives for Indiana.
Hoosier Business Investment Tax Credit (HBITC)
The Hoosier Business Investment Tax Credit (HBITC) program was established to encourage capital investment in Indiana by providing a credit against a company’s Indiana tax liability. The credit amount is based on a company’s qualified capital investment with the final credit amount determined by the IEDC based on an analysis of the economic benefits of the proposed investment.
Economic Development for a Growing Economy (EDGE)
The Economic Development for a Growing Economy (EDGE) program was created to reward companies creating new jobs and contributing to the growth of Hoosier income. EDGE credits are calculated as a percentage of payroll tax withholding for net new Indiana jobs. EDGE credits may be awarded for a term of up to ten years.
Venture Capital Investment Tax Credit
The Venture Capital Investment Tax Credit program was established to improve 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.
Certified Technology Park Program
The Certified Technology Parks 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 local recapture of certain state and local tax revenue which can be invested in the development of the park.
Industrial Development Grant Fund
The Industrial Development Grant Fund provides money to local governments for off-site infrastructure projects associated with an expansion of an existing Indiana company or the location of a new facility in Indiana. State funding through the IDGF program must be matched by a combination of local government and company financial support.
Industrial Recovery Tax Credit
The Industrial Recovery Tax Credit provides an incentive for companies to invest in facilities in need of significant rehabilitation or remodeling. The amount of the credit is based on the qualified investment amount and the applicable percentage (which varies depending on the length of time the facility has been located on the industrial recovery site). The requirements for this credit have been modified in the following ways:
• A vacant industrial facility must have been in service for 15 years (previously it was 20 years);
• The facility must be vacant for one year to qualify (previously it was two years);
• The minimum floor space that a vacant industrial facility must have to qualify has been reduced from 250,000 square feet to 50,000 square feet (for tax years between Dec. 31, 2010 and Jan. 1, 2015) and 100,000 square feet (for tax years after Dec. 31, 2014).
Skills Enhancement Fund
The SEF Fund is a tool to encourage companies to invest in their existing workforce and train new employees. SEF provides reimbursement for eligible training expenses over a two year term. Companies may reapply for additional SEF Funds after their initial two year term.
Office of Regulatory Ombudsman
The Indiana Economic Development Corporation Office of Regulatory Ombudsman acts as a mediator, expediter and problem-solver in areas affecting businesses, communities and economic development organizations. The Ombudsman's office can assist in the permitting process, serve as a liaison with state agencies and provide information about state regulations and requirements. The Office of Regulatory Ombudsman can be contacted at 800-280-0584.
