Incentives
Indiana offers a variety of state and local incentives to encourage business growth, capital investment, and workforce development. These programs provide financial support and tax benefits to companies looking to expand or relocate in the state, ensuring long-term economic prosperity for both businesses and communities.
State
Economic Development for a Growing Economy (EDGE) Tax Credit
The EDGE Tax Credit provides a refundable tax credit to businesses that create new jobs and improve the standard of living for Indiana residents. This credit is phased in over up to 10 years, aligning with employment growth projections.
Hoosier Business Investment Tax Credit (HBITC)
The HBI Tax Credit incentivizes capital investments that drive job creation. It is a nonrefundable income tax credit, calculated as a percentage of eligible capital investment, phased in as the investment progresses.
Skills Enhancement Fund (SEF)
SEF assists companies with employee training costs, covering up to 50% of eligible expenses over two years. Training must lead to a post-secondary or industry-recognized credential, and wage increases must be provided for existing employees receiving training.
Industrial Development Grant Fund (IDGF)
IDGF helps municipalities and eligible entities finance off-site infrastructure improvements needed for business expansion. Reimbursement is provided as project milestones are met.
Headquarters Relocation Tax Credit (HRTC)
The Headquarters Relocation Tax Credit (HRTC) provides a tax credit to corporations that relocate their headquarters to Indiana. The credit is assessed against the corporation’s state tax liability. The Headquarters Relocation Tax Credit is established by I.C. 6-3.1-30.
The Small Headquarters Relocation Tax Credit (S-HQRTC) provides a refundable tax credit to a small, high-growth business that relocates its headquarters or the number of employees that equals 80% of the company’s total payroll to Indiana. The credit is assessed against the corporation’s state tax liability. The S-HQRTC is established by Indiana Code § 6-3.1-30.
Redevelopment Tax Credit (RTC)
RTC supports the redevelopment of vacant land, buildings, and brownfields, offering an assignable income tax credit to businesses investing in community revitalization.
Data Center Sales Tax Exemption
The Data Center Gross Retail and Use Tax Exemption provides a sales and use tax exemption on purchases of qualifying data center equipment and energy to operators of a qualified data center for a period not to exceed 25 years for data center investments of less than $750 million. If the investment exceeds $750 million, the IEDC may award an exemption for up to 50 years.
Venture Capital Investment (VCI) Tax Credit
The Venture Capital Investment Tax Credit program improves access to capital for fast growing Indiana companies by providing individual and corporate investors an additional incentive to invest in early- stage firms and qualified investment funds. Investors who provide qualified debt or equity capital to qualified Indiana businesses or qualified investment funds may receive a credit against their Indiana tax liability.
Community Revitalization Enhancement District Tax Credit (CRED)
The Community Revitalization Enhancement District (CRED) Tax Credit provides an incentive for investment in community revitalization enhancement districts (Indiana Code 36-7-13).
Local
Tax Abatement
Local governments offer tax abatements for manufacturing, logistics, IT equipment, and real estate improvements. Abatement terms are linked to capital investment, wages, and job creation.
Tax Increment Financing (TIF)
TIF allows local governments to redirect property tax revenue from designated areas to fund infrastructure and redevelopment projects. TIF districts can leverage funding through bonds to stimulate growth.
Certified Technology Park (CTP)
CTP designation enables communities to recapture local and state tax revenue to support the development of high-tech businesses and innovation hubs.
Community Revitalization Enhancement District (CReED) Tax Credit
CReED Tax Credit encourages investment in revitalization districts, providing tax incentives for property redevelopment projects expected to yield a positive return.
General Purpose Grants
Communities offer grants tailored to business needs, supporting land acquisition, construction, employee relocation, training, and equipment investments.