Business Incentives

Local  Incentives:

Tax Abatement - Indiana Legislation authorizes cities, towns, and counties to abate taxes for new manufacturing buildings,manufacturing equipment, and expansion of existing facilities. Abatement can be up to ten years. Abatement is on a percentage basis determined by the local government entity. Eventually the company pays full taxes on the equipment and building improvements when the abatement term expires.

TIF (Tax Increment Financing) - Cities and counties through their redevelopment commissions may establish a TIF district. New taxes generated as a result of development in the TIF may be used as debt service on bonds issued for the purpose of developments and improvements in the area. Proceeds from the bonds may be used to construct public improvements on roads, sewers, etc.

State Incentives:

Skills Enhancement 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 costs. ($200,000 Maximum). Indiana will also continue this commitment to training by welcoming companies back after a two year period to re-apply for additional funds to retrain employees.

Technical Enhancement Certification for Hoosiers (TECH Fund)

The TECH Fund provides financial assistance to existing companies that are committed to training their information technology (IT) workers in the latest information technology skills. Eligible companies can receive reimbursement of up to $50,000, or $2,500 per employee, or 50% of training costs, whichever is less. The program is administered on a reimbursement basis with a minimal amount of application paperwork.

Industrial Development Grant Fund (IDGF) Infrastructure Grant

Awarded to local communities to help them meet the public infrastructure needs of a new or expanding business. Publicly-installed infrastructure may be improved up to, but not onto, the company’s property; except in the case of rail spurs and fiber optic cable.

Economic Development for a Growing Economy (EDGE)

Tax credits based on the additional employee payroll taxes for net new job creation in Indiana. The awarded amount can be up to 3.09% of the gross payroll for the net new jobs for a period not to exceed ten years. Credits are applied to the company’s Indiana income tax liability and are refundable.

Hoosier Business Investment Tax Credit (HBI)

Tax credits for a “qualified investment” made in an Indiana facility. Generally speaking, a “qualified investment” includes new buildings, building improvements and equipment; but not real estate. State income tax credits can be awarded by the IEDC Board for up to 10% of the “qualified investment.”

Venture Capital Investment Tax Credit (VCI)