Indiana is committed to fostering economic growth and job creation through a variety of business incentives aimed at attracting new companies, expanding existing ones, and promoting innovation.  The state offers a broad range of tax credits, training programs, and financing options for businesses across different sectors, including manufacturing, technology, agriculture, and energy.  Below are some of the key programs that businesses can take advantage of in Indiana.

Indiana Economic Development for a Growing Economy (EDGE) Tax Credit

Overview

The EDGE Tax Credit is designed to incentivize businesses to create new jobs and make significant capital investments in Indiana.  It is a performance-based program, which means businesses must meet specific job creation and investment targets to qualify.

Eligibility

• Businesses must create a minimum number of new full-time jobs.

• Businesses must meet certain wage and investment thresholds, depending on the nature of the business and its location within Indiana.

Incentive Value

• A tax credit of up to 100% of the state’s income tax liability on wages for new employees.

• The amount of the credit depends on the number of jobs created and the wages paid.

Application Process

Businesses must submit an application to the Indiana Economic Development Corporation (IEDC), providing detailed plans for job creation and capital investment.

Indiana Research and Development (R&D) Tax Credit

Overview

Indiana’s R&D Tax Credit encourages businesses to invest in research and development activities.  The credit helps offset the costs of innovative work related to developing new products, processes, or technologies.

Eligibility

• Businesses must be conducting qualified R&D activities in Indiana.

• The research must focus on developing or improving products, processes, or technologies that offer a competitive advantage.

Incentive Value

• A credit equal to 15% of qualifying R&D expenditures above a base amount.

• Businesses can apply the credit against their state income tax liability.

Application Process

To claim the credit, businesses must file an R&D tax credit application with the Indiana Department of Revenue (IDR) and submit detailed records of their R&D activities.

Indiana Investment and Employment Tax Credit (IETC)

Overview

The IETC incentivizes businesses to invest in Indiana and create new jobs.  It is designed to help attract large-scale investments and expand economic opportunities in the state.

Eligibility

• Businesses must invest a minimum of $1 million in equipment or facilities and create at least 10 new full-time jobs.

• The business must meet specific wage and investment criteria, with certain thresholds based on the county’s economic conditions.

Incentive Value

• A tax credit of up to 10% of qualifying investments in tangible property, such as machinery and equipment.

• Businesses can also receive a credit for a portion of wages paid to new employees.

Application Process

Applications must be submitted to IEDC, which will evaluate the business’s proposed investment and job creation before awarding the credit.

Indiana Hoosier Business Investment (HBI) Tax Credit

Overview

The HBI Tax Credit is designed to encourage businesses to make capital investments and expand their operations in Indiana.  This credit is particularly beneficial to businesses in the manufacturing, logistics, and technology sectors.

Eligibility

• Businesses must invest in new facilities, equipment, or machinery within Indiana.

• The investment must result in the creation of new jobs.

Incentive Value

• The credit is equal to 10% of the amount of the qualifying investment, with a maximum annual credit of $1 million.

• The credit can be carried forward for up to 10 years.

Application Process

Businesses must apply through the IEDC and provide documentation of their investment plans, job creation projections, and location within Indiana.

Indiana Workforce Ready Grant

Overview

The Indiana Workforce Ready Grant helps businesses develop their workforce by providing funding for training and education programs.  This program aims to enhance the skills of workers, making them more competitive in the labor market.

Eligibility

• Businesses must be based in Indiana and have a workforce that requires training or upskilling.

• The training must be related to in-demand jobs in industries such as manufacturing, healthcare, and information technology.

Incentive Value

• The grant provides up to $2,500 per employee for training expenses, including tuition, certification costs, and training materials.

• The grant can cover up to 50% of the total training costs.

Application Process

Businesses apply to the Indiana Department of Workforce Development (DWD), providing information on their training needs and the employees who will benefit from the grant.

Indiana Property Tax Abatement Program

Overview

The Indiana Property Tax Abatement Program provides property tax relief to businesses that invest in new facilities or expand existing ones.  The program is designed to encourage business growth and capital investment in the state.

Eligibility

• Businesses must make a minimum capital investment in property, equipment, or facilities.

• The property must be used for business purposes and must create new jobs.

Incentive Value

• Property tax abatements can last up to 10 years, depending on the amount of the investment and the number of jobs created.

• The amount of the abatement depends on the local county and the specific investment made by the business.

Application Process

Businesses must apply through their local economic development corporation and submit details about the investment and the expected job creation.

Indiana Clean Energy Tax Credit

Overview

The Indiana Clean Energy Tax Credit promotes the adoption of renewable energy systems and energy-efficient technologies by businesses.  This program aims to reduce the environmental impact of businesses while promoting sustainability.

Eligibility

• Businesses must install renewable energy systems, such as solar panels, wind turbines, or geothermal systems.

• The systems must be located within Indiana.

Incentive Value

• The tax credit is equal to 25% of the installation cost of qualifying clean energy systems, up to $25,000 per project.

• The credit can be applied against the business’s state income tax liability.

Application Process

Businesses must submit a claim to the IDR, providing documentation of the clean energy installation and its associated costs.

Indiana Economic Development Tax Credit (EDTC)

Overview

The EDTC is a performance-based tax credit designed to encourage businesses to invest in Indiana and create new jobs.  It is particularly effective for businesses in high-growth sectors that are investing heavily in facilities and infrastructure.

Eligibility

• Businesses must create a minimum number of new jobs and invest in qualifying capital projects.

• The business must meet specific wage and investment criteria.

Incentive Value

• A tax credit of up to 15% of the business’s qualified investments in new facilities or capital projects.

• The credit can be spread over multiple years, based on the business’s tax liability.

Application Process

Businesses must apply to IEDC, which will evaluate the business’s proposed investment and job creation to determine the eligibility for the credit.