State-Offered Business Tax Credits

Hoosier Business Investment Tax Credit

Description

The Hoosier Business Investment (HBI) Tax Credit provides incentive to businesses to support jobs creation, capital investment and to improve the standard of living for Indiana residents. The non-refundable corporate income tax credits are calculated as a percentage of the eligible capital investment to support the project. The credit may be certified annually, based on the phase-in of eligible capital investment, over a period of two full calendar years from the commencement of the project.

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Economic Development for a Growing Economy Tax Credit

Description

The Economic Development for a Growing Economy (EDGE) Tax Credit provides incentive to businesses to support jobs creation, capital investment and to improve the standard of living for Indiana residents. The refundable corporate income tax credit is calculated as a percentage (not to exceed 100%) of the expected increased tax withholdings generated from new jobs creation. The credit certification is phased in annually for up to 10 years based upon the employment ramp-up outlined by the business.

Eligibility

To be eligible for the tax credit:

  • Project will result in net new jobs that were not previously performed by employees of the applicant
  • Project is economically sound and will benefit the people of Indiana by increasing opportunities for employment and strengthening the economy of Indiana
  • Receiving the tax credit is a major factor in the applicant’s decision to go forward with the project and not receiving the tax credit will result in the applicant not creating new jobs in Indiana
  • Political subdivisions/municipalities affected by the project have offered significant incentives to the business

Industrial Recovery Tax Credit (Dinosaur Building)

Description

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.

Eligibility

This credit is applicable to investments made in certified vacant industrial facilities, which contain at least two hundred fify thousand (250,000) square feet of floor space placed in service at least twenty (20) years ago, and has been vacant for at least two (2) years.

Clean Energy

Description

The IEDC’s Clean Energy Tax Credit Programs support Indiana’s advanced agricultural industry and provide an incentive for the development of renewable energy. Producers and distributors of biodiesel and ethanol may be eligible for a tax credit calculated as a percentage of their fuel production or distribution.

Eligibility

Eligible producers and distributors must submit a business plan and application to the IEDC for review and credits are awarded in the chronological order of those received.

Skills Enhancement Fund (SEF)

Description

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.

Eligibility

Companies may claim reimbursement for training expenses that result in improved basic or transferable skills. Company specific and quality assurance training expenses are also eligible. IEDC typically does not provide reimbursement for training that is required by law.

Technology Enhancement Certification for Hoosiers (TECH)

Description

To help Hoosier companies meet the ever-growing demands of the new information economy, the state has designed a program to help workers gain new technology skills. The Technologies Enhancement Certification for Hoosiers, or TECH, Fund is a reimbursement grant program which provides financial assistance to existing companies that are committed to training their workers in the latest information technology skills.

Eligibility

Indiana companies or nonprofit organizations that employ Indiana residents in advanced information technology occupations are eligible to participate in this program. The maximum grant award for any one company or nonprofit organization is $50,000, $2,500 per employee, or 50 percent of training costs, whichever is less. Training activities eligible for reimbursement under the guidelines are those offered by industry-certified training providers, which result in a full-time employee receiving a portable certification in systems administration, systems engineering, software development, professional certifications or other certifications in advanced e-business-enabling applications.

Venture Capital Investment Tax Credit

Description

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.

Eligibility

This credit is available to any taxpayer who is an individual or entity that has any state tax liability. Pass through entities whose shareholders have Indiana income tax liabilities are also eligible for the credit. A taxpayer wishing to obtain a credit for investing in a qualified Indiana business must apply to the IEDC for a certification that the proposed investment plan would qualify for a credit. The total amount of tax credits certified by the IEDC for any calendar year may not exceed twelve and a half million dollars ($12,500,000).