Investing in Innovation? Indiana's R&D Tax Incentives Could Benefit Your Business!

Helping Steuben County Businesses Innovate, Compete, and Grow

Innovation is essential to business growth, and Indiana offers valuable tax incentives to help companies invest in research, product development, and new technologies.

Through Indiana's Research & Development (R&D) Tax Incentive Programs, qualifying businesses may benefit from state income tax credits and sales tax exemptions designed to encourage investment in innovation.

For Steuben County's strong manufacturing and industrial community, these programs represent an opportunity to reduce certain costs associated with research and development while supporting long-term business growth.

Two Incentives That Could Help Your Business

1. Research Expense Tax Credit

Indiana offers a state income tax credit for businesses that incur qualified research expenses.

Depending on the applicable calculation method, eligible businesses may receive:

• A 15% tax credit on the first $1 million of qualifying research expenses exceeding the applicable base amount.
• A 10% credit on qualifying research expenses above the applicable threshold.
• An alternative calculation method that may benefit certain businesses based on their previous research expenditures.
• The ability to carry forward unused credits for up to 10 taxable years.

Qualifying research expenses may include employee wages, supplies, and services associated with eligible research activities.

2. Research & Development Sales Tax Exemption

Indiana also provides a 100% sales tax exemption on qualifying research and development equipment and property.

This incentive may benefit businesses purchasing eligible equipment for activities such as:

• Developing new products.
• Researching new applications for existing products.
• Improving existing products.
• Conducting experimental testing and laboratory research.

Businesses that paid sales tax on qualifying purchases may also be eligible to request a refund through the Indiana Department of Revenue.

Why Does This Matter for Steuben County?

Steuben County has a strong foundation of manufacturing, engineering, and industrial businesses that contribute to our local economy.

As companies continue investing in advanced manufacturing, automation, product development, and technological improvements, understanding available incentives becomes increasingly important.

You don't have to be a technology startup to explore R&D tax incentives!

Established manufacturers and other businesses may conduct qualifying research as part of their everyday efforts to develop new products, improve existing products, and remain competitive. These incentives can help support innovation while encouraging continued investment in Steuben County.

Supporting Innovation. Strengthening Local Industry.

At the Steuben County Economic Development Corporation, we are committed to helping existing businesses grow and connecting employers with resources that support long-term success.

Indiana's R&D tax incentives align with SCEDC's strategic priorities of business retention and expansion, industry innovation, and workforce development.

Whether your company is developing a new product, investing in qualifying research equipment, or exploring new technologies, these programs may offer financial benefits worth investigating.

Is Your Business Taking Advantage of Available Incentives?

Businesses engaged in research and development are encouraged to review their eligibility with a qualified tax professional and the Indiana Department of Revenue.

SCEDC is here to help connect Steuben County businesses with the resources and state partners that support innovation and growth.

Stay Here. Grow Here. Innovate Here.

Contact the Steuben County Economic Development Corporation to learn more about available business resources and economic development programs.

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