State Incentives and Resources
State Incentive Programs
Economic Development for a Growing Economy Tax Credit (EDGE)
The Economic Development for a Growing Economy (EDGE) is a refundable tax credit program that rewards companies creating jobs and contributing to the growth of Indiana’s economy. EDGE credits are calculated as a percentage of payroll tax withholding for net new Indiana jobs. EDGE credits may be awarded for a period of up to 10 years.
Hoosier Business Investment Tax Credit (HBITC)
This program encourages 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 Indiana Economic Development Corporation, based on an analysis of the economic benefits of the proposed investment.
Industrial Recovery Tax Credit (Dinosaur Building)
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.
Venture Capital Investment Tax Credit
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.
Headquarters Relocation Tax Credit
When a business relocates its corporate headquarters (defined as the location of the principal office of the principal executives) to Indiana, it is entitled to a credit against its state tax liability equal to half of the costs incurred in relocating the headquarters. A company must have a worldwide annual revenue of at least $100 million to qualify.
21st Century Research and Technology Fund
The Indiana 21st Century Research and Technology Fund was created to stimulate the process of diversifying the State's economy by developing and commercializing advanced technologies in Indiana. The Board, representing most of the academic and commercial sectors ofthe State, approves awards.
Small Business Innovation Research Initiative (SBIR/STTR)
The Small Business Innovation Research (SBIR) - along with its sister program, the Small Business Technology Transfer program (STTR) - are highly competitive and encourage small businesses to explore their technological potential. SBIR/STTR funding is available from 11 participating agencies throughout the United States and focuses on various technological areas.
Loan Guaranty Program
IEDC can provide a loan guaranty to a lender for the benefit of a high-growth/high-skilled company, manufacturer, rural development project, value-added agricultural enterprise or another type of business that creates or retains a significant number of Hoosier jobs.
Capital Access Program (CAP)
The Capital Access Program (CAP) is a small business credit enhancement program that creates a specific cash reserve fund for the lender to use as additional collateral for loans enrolled in the Program. CAP allows lenders to consider loans that might not meet conventional lending requirements.
Hoosier Alternate Fuel Vehicle Manufacturer Credit
The program provides a credit up to 15 percent ofthe qualified investment for the manufacture of alternative fuel vehicles. This program aims to foster job creation and reduce dependence upon foreign energy sources.
R & D Tax Credit
The Research and Development credit provides a credit against state tax liability for qualified company research expenses.
R & D Sales Tax Exemption
The exemption for research and development equipment only applies to equipment purchased for the purpose of research and development activities. Research and development activities include any activities devoted directly to experimental or laboratory research and development for new products, new uses of existing products, or improving or testing existing products.
Patent Income Exemption
The Patent Tax Exemption allows certain income derived from qualified patents to be exempt from taxation. The Tax Exemption for Patent-Derived Income defines qualified patentstoinclude only utility patents and plant patents. The total amount of exemptions claimed by a taxpayer in a taxable year may not exceed $5 million.
Media Production Sales Tax Exemption (MPETC)
The Media Production Expenditure Tax Credit was established to further grow the Indiana production industry by providing individuals and companies a refundable tax credit of up to 15 percent of the amount spent in Indiana for qualified production expenditures.
Special Programs
Certified Technology Park Program
The Certified Technology Parks program supports the attraction and growth of high-technology business in Indiana and promotes technology transfer opportunities. 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. Allen County, Indiana's Certified Technology Park is the Northeast Indiana Innovation Center.
Shovel Ready Program
The Shovel Ready Program is a new state program created to help communities certify sites as "ready for development." Shovel Ready is designed to ultimately help companies locate and develop a property site quickly. This provides a competitive advantage for Indiana and gets Hoosier jobs here faster. Allen County has more certified Shovel Ready sites available than any other county in the state of Indiana: Silverado Industrial ParkandJames E. Kelley Commerce Aerocentre.
Regulatory Ombudsman
Whether it’s a state or local issue, an ombudsman can assist in the process of obtaining permits and approvals necessary for business operation. An ombudsman serves as a liaison between companies and regulatory agencies.
Industrial Development Grant Fund (IDGF)
This grant 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.
Elevate Ventures
This not-for-profit organization connects entrepreneurs to resources that provide professional guidance in business models, fundraising, and grants