Biggins Lacy Shapiro & Company, LLC

Indiana Economic Development Incentive Programs

TAX CREDITS

Economic Development for a Growing Economy Program (EDGE): A refundable tax credit is available to companies that create and/or retain jobs and make capital investments in the state.  The EDGE credit is calculated as a percentage of the projected tax withholdings that will be generated by the newly created and/or retained jobs for up to ten years.  Local government support is required for projects to be approved for state EDGE credits.

Hoosier Business Investment Tax Credit Program (HBI): Companies that create new jobs and make capital improvements to a business facility may qualify for this non-refundable tax credit.  The maximum credit is equal to 10% of qualified capital investment.  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. Unused credits may be carried forward for up to 9 years. Local government support is required for projects to be approved for state HBI credits.

Headquarters Relocation Tax Credit: Businesses that relocate a corporate headquarters operation to Indiana, create at least 75 jobs, and have annual worldwide revenue of at least $50 million are eligible to receive a tax credit of up to 50% of business relocation costs including capital investment.  The credit is non-refundable and non-transferable; however unused credits can be carried forward for up to 9 years.

Industrial Recovery Tax Credit:  Provides an incentive for investment in former industrial facilities requiring significant rehabilitation or remodeling expenses. The credit is available to owners, developers, and certain lessees of buildings located in an industrial recovery site which was brought into service at least 15 years ago and at least 100,000 square feet. The credit amount is equal to up to 25% of qualifying investment dependent on the age of the facility.

As of January 1, 2017, buildings that were demolished within the 5 years preceding an application may qualify if demolished for health and safety concerns.

Research and Development Tax Credit:  Provides a tax credit equal to 15% of qualified research expenses on the first $1 million of investment and 10% for the expenses exceeding $1 million.  This non-refundable credit may be carried forward for up to 10 years.

GRANTS

Industrial Development Grant Fund (IDGF): This program provides assistance to municipalities and other eligible entities. The grant may be provided to reimburse up to 50 percent, of eligible off-site public infrastructure costs to support a project site over a period of two full calendar years from the commencement date of the project.

Skills Enhancement Fund (SEF): This program provides reimbursable grants to businesses for costs associated with training and upgrading skills of employees.  Grants are typically valued at up to 50% of eligible training costs over a 2-year period.

TAX EXEMPTIONS

Sales & Use Tax Exemptions: Manufacturing and research & development equipment (including computers, computer software, software-as-a-service, and testing equipment) are exempt from sales and use tax.

Last updated: June 2018



 
Biggins Lacy Shapiro & Company, LLC
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