The Indiana Economic Development Corporation (IEDC) has many incentive programs available for companies creating jobs and raising income in Indiana. Economic development incentives include tax credits based on job creation and capital investment, training grants and public infrastructure assistance.
- Economic Development for a Growing Economy Tax Credit – EDGE tax credits are based on the additional employee payroll withholdings for net new job creation in Indiana.
- Hoosier Business Investment Tax Credit – HBI tax credits are available to a company making a “qualified investment” in an Indiana facility.
- Skills Enhancement Fund – The SEF program provides financial assistance to new and expanding companies committed to training their Indiana resident workforce.
- Industrial Development Grant Fund – These grants help communities meet the public infrastructure needs of a new or expanding business.
The IEDC offers a number of incentive program specifically for high-growth companies with high-skilled jobs:
- 21st Century Research and Technology Fund – The 21 Fund helps develop and commercialize advanced technologies in Indiana.
- Small Business Innovation Research Initiative – This initiative helps Indiana businesses compete for and win federal funding from highly competitive SBIR/STTR programs.
- Venture Capital Investment Tax Credit – The VCI tax credit is a non-refundable tax credit available to qualified applicants that provides investment capital to qualified Indiana businesses.
The IEDC also manages two programs to assist with business finance:
- Capital Access Program (CAP) The CAP program provides businesses with access to capital by encouraging lenders who participate in the program to make loans they may not otherwise make.
- Industrial Development Project Guaranty Fund The Guaranty Program can help a borrower obtain financing from their lender when they do not qualify for conventional financing.
Finally, Indiana has available a number of programs to encourage research & development activities in Indiana:
- Patent Income Exemption – To spur additional patent activity, taxpayers are exempt from certain income derived from qualified utility and plant patents.
- Research and Development Sales Tax Exemption – This program exempts a business from 100 percent of the sales tax on research and development equipment acquired after June 20, 2007
- Research and Development Tax Credit – The qualified research expense credit has been increased to 15 percent on the first $1 million of investment.
In addition, The Indiana Finance Authority (IFA) is authorized to issue tax-exempt bonds, which lower the cost of financing for manufacturing projects and certain other qualified projects.
Whitley County units of government have consistently approved tax abatements to phase-in property taxes assessed on new building construction or the purchase of equipment for manufacturing, research and development, logistical distribution and information technology.
Whitley County is also home to the largest Tax Increment Finance (TIF) District in the state, which allows property taxes derived from a new project in the district to be used to finance public infrastructure or other project related costs.
Finally, Whitley County sets aside County Economic Development Income Tax (CEDIT) dollars to encourage job creating economic development projects. The EDC Investment Board reviews requests for business incentives and makes recommendations to the County Commissioners on how to utilize these funds.
The EDC also has a low-interest revolving loan program (RLF) in which individuals or startup and existing businesses can apply. Download the EDC Revolving Loan Fund handout to learn more.