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The state incentive programs are administered by the Indiana Economic Development Corporation. There are over 30 different types of incentives that are available to new and existing business in the state. In addition, there are close to 15 other funds and grants that can be of assistance to a company locating in Indiana.
Several key incentive programs are listed below. Additional information can be obtained from the Indiana Economic Development Corporation.
21st Century Research and Technology Fund
The 21st Century Research and Technology Fund stimulates the process of diversifying the state’s economy by developing and commercializing advanced technologies in Indiana. The fund makes awards in two broad categories: Science and Technology Commercialization and Centers of Excellence. In addition, the Fund provides cost-share on behalf of Federal proposals submitted by Indiana-based entities. Awards are made for periods of up to two years in amounts up to $5 million.
For detailed information on the 21st Century Research and Technology Fund, please go to:
www.21fund.org
Certified Technology Park Program
The Certified Technology Park Program is designed to support the attraction and growth of high-technology businesses in Indiana and promote technology transfer opportunities. Certified Tech Park designation allows for the local recapture of certain state and local tax revenues which can be invested in the development of the park.
For detailed information on the Certified Technology Park Program, please go to:
Certified Technology Park Program
Clean Energy Tax Credit Programs
Tax credit program to support Indiana’s advanced agricultural industry and provide an incentive for the development of renewable energy. Producers and distributors of bio diesel and ethanol may be eligible for a tax credit calculated as a percentage of their fuel production or distribution.
For detailed information on Clean Energy Tax Credit Programs, please go to:
Clean Energy Tax Credit Programs
Economic Development for a Growing Economy (EDGE)
The EDGE program offers assistance through tax credits applied against any Indiana Corporate income tax liability incurred as a result of the recipient's project. Credits may be awarded for a period not to exceed ten years. EDGE was created to assist those companies which are creating new jobs by locating or expanding in Indiana.
For detailed information on the EDGE program, please go to:
Economic Development for a Growing Economy
Hoosier Business Investment Tax Credit
Thirty percent credit against the applicant’s state tax liability based upon capital investments that lead to the creation of new jobs or increase the level of wages in Indiana. The EDGE (Economic Development for a Growing Economy) Board must approve the investment for the credit to be claimed. Qualified investments include the purchase of equipment, infrastructure, new computers or related equipment; costs associated with retooling machinery; and costs associated with construction of buildings for use in the computer, software, biological sciences or telecommunications industries.
For detailed information on the Hoosier Business Investment Tax Credit, please go to:
Hoosier Business Investment Tax Credit
Hoosier Headquarters Relocation Tax Credit
A business that relocates its corporate headquarters (defined as the location of the principal office of the principal executive officers) to a location in Indiana is entitled to a credit against its state tax liability equal to 50% of the costs incurred in relocating the headquarters. This program does not have a minimum job requirement. However, a company must have worldwide annual revenue of at least $500 million to qualify. Effective 01/01/2007.
Industrial Development Bonds (IDB)
Industrial Development Bonds or Private Activity Bonds are municipal bonds issued for the benefit of private companies. Since municipal bonds are tax exempt, they are offered at a lower interest rate. The bonds may be issued through the Indiana Development Finance Authority (IDFA) or through local economic development commissions and are available to Indiana manufacturing companies.
Industrial Development Grant Funds (IDGF)
This program is designed to assist communities in providing necessary public infrastructure capable of attracting and supporting new business investment. Grants and loans are awarded to communities on behalf of a new or expanding industry.
For detailed information on the Industrial Development Grant Funds, please go to:
Industrial Development Grant Funds
Industrial Recovery Tax Credit (Dinosaur Building)
This tax credit provides an incentive for companies to invest in facilities requiring significant rehabilitation or remodeling expense. After a building has been designated as an industrial recovery site, companies may be eligible for a tax credit calculated as a percentage of qualified rehabilitation expense.
For detailed information on the Industrial Recovery Tax Credit (Dinosaur Building), please go to:
Industrial Recovery Tax Credit
International Trade Show Assistance Program
The International Trade Show Assistance Program provides financial assistance to small Indiana businesses participating in international trade shows. The program is designed to promote Indiana exports by encouraging companies to explore overseas markets.
For detailed information on the International Trade Show Assistance Program, please go to:
International Trade Show Assistance Program
Research Expense Credits
A taxpayer may be eligible for a credit on qualified research expenses. There are two separate formulas for calculating the credit with one applying to expenses incurred prior to January 01, 2008 and another applying to the expenses after January 01, 2008.
Research and Development Sales Tax Exemption
For transactions occurring after June 30, 2005, 50 percent of the sales tax is imposed on the purchase of all qualified research and development equipment. For transactions beginning on or after July 01, 2007, sales tax on purchases of qualified research and development equipment is exempted. Taxpayers may file a claim for the refund for tax paid on retail transactions that occur on or after July 01, 2005.
SBIR/STTR Matching Program
The SBIR/STTR Matching Program provides matching grants (up to a maximum amount of $100,000) to recipients of Phase 1 awards from the Small Business Innovation and Research (SBIR) and Small Business Technology Transfer (STTR) programs.
For detailed information on the SBIR/STTR Matching Program, please go to:
SBIR/STTR Matching Program
Skills Enhancement Fund (SEF)
Indiana's Skills Enhancement Fund provides financial assistance to new and expanding companies committed to training their workers. Eligible companies can receive reimbursement up to $200,000 or up to 50% of eligible training costs. The program is administered on a reimbursement basis by the Indiana Economic Development Corporation with a minimal amount of application paperwork. Indiana will also continue this commitment to training by welcoming companies back after two years to apply for more funds to retrain their employees.
For detailed information on the Skills Enhancement Fund, please go to:
Skills Enhancement Fund
Technology Enhancement Certification for Hoosiers (TECH)
The Technology Enhancement Certification for Hoosiers (TECH) program helps Indiana companies meet the ever-growing demands of the new information technology economy and assists workers to gain new technology skills. This is a reimbursement grant program which provides financial assistance to existing companies that are committed to training their workers in the latest information technology skills.
For detailed information on the Technology Enhancement Certification for Hoosiers (TECH) program, please go to:
Technology Enhancement Certification for Hoosiers
Venture Capital Investment Tax Credit
The Venture Capital Investment Tax Credit program gives tax credit against a qualified taxpayer’s state tax liability. The credit is for the taxpayer who provides qualified investment capital to a qualified Indiana business. A business is certified by the Indiana Economic Development Corporation if it is paying wages at least 150 percent of Indiana per capita personal income; is headquartered in Indiana; has average annual revenues of less than $10 million in the previous two years; has at least 50 percent of its employees residing in Indiana or at least 75 percent of the company’s assets located in Indiana; is not engaged in a business involving real estate, real estate development, insurance, retail sales, oil or gas exploration or services provided by an accountant, lawyer or physician; and is focused on research and development or other technology pursuits.
For detailed information on the Venture Capital Investment Tax Credit, please go to:
Venture Capital Investment Tax Credit
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