Economic Development Success Driven

State Incentives

Indiana ranked fifth nationally – and tops in the Midwest – in the “Top States for Doing Business” ranking by Area Development magazine.

Indiana is a right-to-work state with all the right resources, business incentives, low corporate tax rates and  AAA credit rating. Indiana has it all, in a central location at the crossroads of America, with an atmosphere that feels like home.


Indiana Programs and Initiatives

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.

More Information on the Small Business Innovation Research Initiative


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.

More Information on the Venture Capital Investment Tax Credit


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.


More Information on the Indiana Small Business Development Center


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.

More Information on the Indiana Certified Technology Parks


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.

More Information on the Indiana Development Funds


Indiana Tax Credits

Economic Development for a Growing Economy Tax Credit (EDGE)
The Economic Development for a Growing Economy (EDGE) is a program designed to encourage companies to expand or locate operations in Indiana.

More Information on EDGE


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.

More Information on the Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit


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.

More Information on the Hoosier Business Investment Tax Credit


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.

More Information on the Headquarters Relocation Tax Credit


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.

More Information on the Industrial Recovery Tax Credit


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.

More Information on the Media Production Expenditure Tax Credit


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.

More Information on the R&D Tax Credit


Exemptions

Patent Income Exemption
Taxpayers are exempt from certain income derived from qualified utility and plant patents.  Qualified taxpayers are eligible for an exemption of 50 percent of patent income for each of the first five years. The exemption percentage decreases over the next five years to 10 percent in the tenth year.

More Information on the Patent Income Exemption


R&D Sales Tax Exemption

The Research and Development (R&D) sales tax exemption provides a refund of 50 percent of the Indiana sales taxes paid on purchases of eligible research and development equipment purchased after June 30, 2007. Taxpayers may also file a claim for the refund for tax paid on retail transactions that occur after June 30, 2005.

More Information on the R&D Sales Tax Exemption