Cost
of Doing Business
State Incentives
The State of Indiana has an array of incentives to offer growing
businesses. The Indiana Economic Development Corporation and the
Indiana Department of Workforce Development are two primary agencies
serving Indiana companies.
Indiana Economic Development Corporation
The Indiana Economic Development
Corporation (IEDC) is the State
of Indiana's lead economic development agency. IEDC was officially
established in February 2005 to replace the former Department of
Commerce. In order to respond quickly to the needs of businesses,
IEDC operates like a business.
Indiana Department of Workforce Development
Indiana Department
of Workforce Development (IDWD) manages and implements
innovative employment programs for Hoosiers, unemployment insurance
systems, and facilitates regional economic growth initiatives
for Indiana.
Hoosier Business Investment Tax Credit(HBITC)
The Hoosier
Business Investment Tax Credit (HBITC) program was established
to encourage capital investment in Indiana by providing a credit
against a company’s Indiana tax liability. The credit
amount is based on a company’s qualified capital investment
with the final credit amount determined by the IEDC based on an
analysis of the economic benefits of the proposed investment.
Economic Development for a Growing Economy(EDGE)
The Economic
Development for a Growing Economy (EDGE) program was
created to reward companies creating new jobs and contributing to
the growth of Hoosier income. EDGE credits are calculated
as a percentage of payroll tax withholding for net new Indiana jobs. EDGE
credits may be awarded for a term of up to ten years.
Venture Capital Investment Tax Credit
The Venture
Capital Investment Tax Credit program was established
to improve access to capital for 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 tax liability.
Clean Energy Tax Credit
The Clean
Energy Tax Credit Programs support Indiana’s
advanced agricultural independence and provide an incentive for
the development of renewable energy. Biodiesel, blended biodiesel,
ethanol producers and blended biodiesel distributors may be eligible
for a tax credit calculated as a percentage of their fuel production
or distribution.
Certified Technology Park Program
The Certified
Technology Parks program was created as a tool to support
the attraction and growth of high-technology business in Indiana.
Designation as a Certified Tech Park allows for the local recapture
of certain state and local tax revenue which can be invested in
the development of the park.
Industrial Development Grant Fund
The Industrial
Development Grant Fund provides money to local governments
for off-site infrastructure projects associated with an expansion
of an existing Indiana company or the location of a new facility
in Indiana. State
funding through the IDGF program must be matched by a combination
of local government and company financial support.
Industrial Recovery Tax Credit
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.
Skills Enhancement Fund
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.
Technology Enhancement Certifications for Hoosiers (TECH)
Fund: The TECH Fund funded jointly by the Indiana Department
of Workforce Development and the Indiana Economic Development
Corp. was created to help Indiana businesses train their existing
information technology professionals. The maximum award of $50,000,
of the IT training costs, or $2,500 per employee, whichever is
less, can be used for costs associated with a company's IT professionals
earning recognized certifications in areas including: systems
administration, systems engineering and software development.
Indiana Finance Authority Loan Guaranty Program
The IFA can guarantee loans for high-growth/high-tech companies,
manufactures, rural development projects, value-added agricultural
enterprises and other types of businesses that create a significant
number of Hoosier jobs. To date, IFA has provided over $83 million
guaranteed loans to Indiana businesses.
Office of Regulatory Ombudsman
The Indiana Economic Development Corporation Office of Regulatory
Ombudsman acts as a mediator, expediter and problem-solver in
areas affecting businesses, communities and economic development
organizations. The Ombudsman's office can assist in the permitting
process, serve as a liaison with state agencies and provide information
about state regulations and requirements. The Office of Regulatory
Ombudsman can be contacted at 800-280-0584.
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