21st Century Research and Technology Fund
The 21st Century Research and Technology Fund stimulates the process of diversifying Indiana's economy by financially supporting Indiana companies that are developing and commercializing advanced technologies in Indiana.
Economic Development for a Growing Economy Tax Credit
The Economic Development for a Growing Economy (EDGE) is a program designed to encourage companies to expand or locate operations in Indiana.
EDGE is a refundable tax credit that can be offered in situations where Indiana is competing against another state or country for a company's site location investment. EDGE credits are calculated as a percentage of payroll tax withholding for net new Indiana jobs. The company must commit to maintaining operations in Indiana for at least two years beyond the term of its EDGE award.
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.
Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit
This program provides a credit up to 15 percent, as determined by IEDC, of the qualified investment for the manufacture of alternative fuel vehicles. An applicant must compensate its employees at least 150 percent of the state’s hourly minimum wage and agree to maintain operations for at least 10 years. The Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit is established by IC 6-3.1-31.9.
The Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit is designed to foster job creation and higher wages in Indiana; reduce dependency upon energy sources imported into the United States; and reduce air pollution as the result of the manufacture or assembly of alternative fuel vehicles in Indiana.
Under the terms of the statute, qualified business investment for the manufacture of alternative fuel vehicles means the amount of a taxpayer's expenditures in Indiana that are reasonable and necessary for the manufacture or assembly of alternative fuel vehicles. "Alternative fuel vehicle" means any passenger car or light truck with a gross weight of eight thousand five hundred (8,500) pounds or less that is designed to operate on at least one alternative fuel.
Hoosier Business Investment Tax Credit
The Hoosier Business Investment Tax Credit (HBITC) 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 (IEDC), based on an analysis of the economic benefits of the proposed investment. HBITC is established by IC 6-3.1-26.
Indiana Certified Technology Parks
The Certified Technology Parks program was created as a tool to support 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.
Indiana Development Funds
The Toolbox Guide to Development Funds, managed by Ball State University, is a comprehensive listing of grants, loans, tax programs, and incentives available in the state of Indiana. The searchable database of programs and provides the information entrepreneurs require to connect to projects that best fit their needs.
Indiana Shovel Ready Program
The Indiana Economic Development Corporation’s (IEDC) Shovel Ready Program reduces potential costs of site development for businesses and enhances the marketability of certified sites.
The goals of the Shovel Ready Program are to:
* Certify sites and existing buildings to expedite the location and permitting processes for business development
* Help local communities identify and prepare sites and existing buildings for economic development
* Identify and fast track the state and local permits necessary for a specific site (dependent on the end user)
Indiana Small Business Development Center
The Indiana Small Business Development Center (ISBDC) offers free and low-cost information, management counseling, and educational services to Indiana small business owners and potential entrepreneurs. The ISBDC helps Indiana businesses grow and create new jobs within the state.
Industrial Development Grant Fund
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.
Industrial Recovery Tax Credit
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. Industrial Recovery Tax Credit is established by IC 6-3.1-11.
Governor Mitch Daniels in late 2005 launched an aggressive 10-year, $12 billion transportation plan, known as “Major Moves,” to significantly improve and expand Indiana’s highway infrastructure. A total of $2.6 billion was committed to Major Moves from the long-term lease of the Indiana Toll Road. The Major Moves plan called for 104 new roadways by 2015 with 1,600 lane miles.
Between 2001 and 2005, prior to Major Moves, the state averaged nearly $750 million for construction per year. Of that $750 million, an average of nearly $250 million per year was spent on new construction while an average of approximately $500 million per year was spent on preservation projects.
With $11 billion being invested from 2005-2012, the Indiana Department of Transportation is now investing an average of more than $1.5 billion in construction dollars annually to improve Indiana’s transportation infrastructure, with no increase in Indiana’s gasoline or diesel fuel taxes.
Media Production Expenditure Tax Credit
The Media Production Expenditure Tax Credit exempts sales tax on personal property if the taxpayer acquires the property for direct use in a qualified Indiana media production.
Effective July 1, 2008, the Media Production Expenditure Tax Credit (MPETC) provides individuals and companies a credit of up to 15 percent on the amount spent in Indiana for qualified production expenditures. The credit is available to an approved individual or entity that is engaged in the business of making qualified media productions in Indiana.
The MPETC is refundable; therefore, if the amount of the MPETC exceeds the taxpayer’s state income tax liability for that taxable year, the taxpayer is entitled to a refund of the excess of the credit amount over their state income tax liability. The total amount of tax credits certified by the IEDC for any fiscal year may not exceed $2.5 million, but there is no cap per project.
R&D Tax Credit
The Research and Development (R&D) Tax Credit provides an incentive for business investment in Indiana by providing a credit against state tax liability for qualified company research expenses. The R&D tax credit (also known as the Research Expense tax credit) is based on the increase in Indiana R&D over the prior three-year base.
Small Business Innovation Research Initiative
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs stimulate technological innovation and provide opportunities for Indiana small businesses to participate in federally funded research and development programs.
After more than two decades of existence, the SBIR program has established itself as one of the most effective technology programs administered by the federal government. 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 – to help Indiana businesses compete for and win federal funding. Additionally, the IEDC SBIR/STTR initiative is committed to assisting Indiana businesses in the commercialization of their prototypes and understands the impact that these companies can have on the economy. This, coupled with the matching program, will provide Indiana companies with the fuel needed to excel in the SBIR/STTR programs.
The IEDC SBIR initiative has structured several significant services to assist with the expansion of high technology business in Indiana.
Tax-exempt Bond Program
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.
Venture Capital Investment Tax Credit
The Venture Capital Investment Tax Credit improves 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.