State Incentives

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Tax Credits and Exemptions
                                                                                                     
Economic Development for a Growing Tax Credit (EDGE)
This program rewards companies that create new jobs and contribute to the growth of Hoosier income.
 
Hoosier Business Investment Tax Credit (HBITC)
This program provides a credit against a company's Indiana tax liability to encourage capital investment in Indiana.

Venture Investment Tax Credit
Program assists Indiana companies in raising capital by offering a tax incentive to individual and corporate investors.

Industrial Recovery Tax Credit (Dinosaur Building)
This tax credit provides an incentive for companies to invest in facilities requiring significant rehabilitation or remodeling expense.

Headquarters Relocation Tax Credit
A business that relocates its corporate headquarters (as defined by state statue) to Indiana, may receive a credit against its state tax liability equal to half of the costs incurred in relocating the headquarters.  A company must have worldwide annual revenue of at least $100 million to qualify.

Hoosier Alternative Fuel Vehicle Manufacture Tax Credit
This program provides a credit up to 15%, as determined by the IEDC, of the qualified investment for the manufacture of alternative fuel vehicles.  An applicant must compensate its employees at least 150% of the state’s hourly minimum wage and agree to maintain operation for at least ten years.  IC 6-3.1-31.9.
 
Research and Development (R&D) Tax Credit
The R&D Tax Credit provides an incentive for business investment by providing a credit against state tax liability for qualified company research expenses.  The tax credit is based on the increase of R&D in Indiana over a three-year period.  The program is administered by the Indiana Department of Revenue.
  
Special Programs

SBIR/STTR Matching Program
The fund provides matching grants (up to a maximum amount of $100K) to recipients of Phase I awards from the Small Business Innovation and Research (SBIR) and Small Business Technology Transfer (STTR) programs. SBIR/STTR programs 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 focus on various technological areas. The 21st Century Research and Technology Fund, an office of the IEDC, oversees the mission of the program.

Certified Technology Park Program
The Certified Technology Parks program supports the attraction and growth of high-technology business in Indiana and promote 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.  The Certified Technology Park program is established by IC 36-7-32.

Industrial Development Grant Fund (IDGF)
The IEDC provides financial support for infrastructure improvements in conjunction with projects creating jobs and generating capital investment in Indiana.  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.  The IDGF is established by I.C. 5-28-25.

Tax-Exempt Bonds
Private Activity Bonds are often called Industrial Revenue Bonds (IRBs) or Industrial Development Bonds (IDBs) and are issued by state or local governmental entities for the benefit of a private company, usually manufacturers. Interest on the bonds is generally exempt from federal income taxes for investors, which typically results in lower long-term interest rates to the borrower
 
The Skills Enhancement Fund (SEF)
Provides financial assistance to businesses committed to training their Indiana workforce by offering grants that reimburse a portion of a company’s eligible training costs over a two-year term. Each SEF application is evaluated on its merits. Companies may reapply for additional SEF funds after their initial grant is successfully completed. The SEF Program is established under IC 5-28-7.