State Incentives
The State of Indiana offers competitive incentives to growing businesses. The Indiana Economic Development Corporation and the Indiana Department of Workforce Development are two primary agencies serving Indiana companies.
Hoosier Business Investment Tax Credits
Description:
Provides tax credits based on a project to create new jobs or increase wage levels in Indiana. A "qualified investment" made in an Indiana facility may qualify for a credit against Indiana tax liability, so long as the business has had an Indiana presence for at least one (1) year. Limited to the lesser of 30% of the "qualified investment" or state tax liability growth.
Eligibility:
Hoosier Business Investment Tax Credits recipients must increase total earnings of Indiana employees, pursue an economically sound project that will benefit and strengthen Indiana, have an overall positive fiscal impact and the average wage should be at least 150% of the hourly minimum wage. The company must maintain operations for at least 10 years during the term that the tax credit is available and must annually report new employees and their average wages. The company must keep the qualified investment property in Indiana for at least the lesser of ten (10) years or its useful life for federal income tax purposes.
EDGE Tax Credits
Description:
This program provides tax credits based on the additional payroll for net new jobs created in Indiana of the payroll taxes withheld on those employees. Up to 3.09% annually can be awarded on eligible gross payroll, for a period not to exceed 10 years.
Eligibility:
Significant new Hoosier job creation, significant local participation and average wage must be at or above the county average wage.
Industrial Recovery Tax Credit (Dinosaur Building)
Description
The Industrial Recovery 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.
Eligibility
This credit is applicable to investments made in certified vacant industrial facilities, which contain at least two hundred fify thousand (250,000) square feet of floor space placed in service at least twenty (20) years ago, and has been vacant for at least two (2) years.
Clean Energy
Description
The IEDC's Clean Energy Tax Credit Programs support Indiana's advanced agricultural industry and provide an incentive for the development of renewable energy. Producers and distributors of biodiesel and ethanol may be eligible for a tax credit calculated as a percentage of their fuel production or distribution.
Eligibility
Eligible producers and distributors must submit a business plan and application to the IEDC for review and credits are awarded in the chronological order of those received.
Skills Enhancement Fund (SEF)
Description
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.
Eligibility
Companies may claim reimbursement for training expenses that result in improved basic or transferable skills. Company specific and quality assurance training expenses are also eligible. IEDC typically does not provide reimbursement for training that is required by law.
Technology Enhancement Certification for Hoosiers (TECH)
Description
To help Hoosier companies meet the ever-growing demands of the new information economy, the state has designed a program to help workers gain new technology skills. The Technologies Enhancement Certification for Hoosiers, or TECH, Fund 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.
Eligibility
Indiana companies or nonprofit organizations that employ Indiana residents in advanced information technology occupations are eligible to participate in this program. The maximum grant award for any one company or nonprofit organization is $50,000, $2,500 per employee, or 50 percent of training costs, whichever is less. Training activities eligible for reimbursement under the guidelines are those offered by industry-certified training providers, which result in a full-time employee receiving a portable certification in systems administration, systems engineering, software development, professional certifications or other certifications in advanced e-business-enabling applications.
Venture Capital Investment Tax Credit
Description
The Venture Capital Investment Tax Credit was established to improve access to capital to 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 income tax liability.
Eligibility
This credit is available to any taxpayer who is an individual or entity that has any state tax liability. Pass through entities whose shareholders have Indiana income tax liabilities are also eligible for the credit. A taxpayer wishing to obtain a credit for investing in a qualified Indiana business must apply to the IEDC for a certification that the proposed investment plan would qualify for a credit. The total amount of tax credits certified by the IEDC for any calendar year may not exceed twelve and a half million dollars ($12,500,000).
Office of the 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.
The ombudsman assists both current and potential Indiana businesses with a variety of topics, including agency contacts and communication facilitation; license and permit requirements and applications; permit tracking; and regulatory compliance.
In addition, the ombudsman serves as a liaison between businesses and various state agencies, such as the Indiana departments of Environmental Management, Natural Resources, Transportation, Revenue and Workforce Development, and the offices of the Secretary of State and the Attorney General.
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