Indiana offers various tax credit programs to make doing business here simple and affordable. The number of jobs your company will create as well as the average wage and amount of capital investment will be taken into consideration to determine the amount of tax credit you will receive when locating here. The following three programs are the primary programs used by companies coming from outside the United States to invest in Indiana:
Economic Development for a Growing Economy Tax Credit (EDGE):
EDGE is a state corporate income tax credit based upon employment. The credit is calculated as a percentage (not to exceed 100%) of the expected increased tax withholdings generated from new jobs created by your company. The credit is employment based, therefore it is paid to the company in proportion to the percentage of committed jobs actually created. This credit can be claimed regardless of whether the company has a state income tax liability or not. In other words, even in the case of a company with no profits, this credit is paid out at the end of the year. This is a very good program for companies in a start up phase.
Skills Enhancement Fund (SEF):
SEF is designed to help you tailor a workforce in Indiana that meets your company's needs. The grant reimburses a portion (typically 50%) of eligible training costs over a period of two full calendar years from the commencement of the project. Eligible expenses include everything except: Orientation Related To New Hires and Federally Mandated Safety Training (OSHA).
Hoosier Business Investment Tax Credit (HBI):
HBI is a state corporate income tax credit that is calculated as a percentage of the eligible capital investment needed to support the project. Eligible capital investment includes new machinery and building costs associated with the project. In order to claim this credit, a company must have a state corporate income tax liability.—
In addition to the primary three programs above, the State of Indiana has the following additional incentive programs:
Headquarters Relocation Tax Credit (HRTC):
HRTC provides a tax credit to corporations that relocate their headquarters to Indiana. The credit equals half the moving costs and is assessed against the corporation's state tax liability.
Industrial Recovery Tax Credit:
The Industrial Recovery Tax Credit, also known as the DINO tax credit for older buildings it benefits, provides an incentive for companies to invest in former industrial facilities requiring significant rehabilitation or remodeling expenses. The credit is available to owners, developers, and certain lessees of buildings located in an industrial recovery site which was brought into service at least 15 years ago. The buildings must be at least 100,000 square feet beginning January 1, 2015 and 75% vacant at the time the application is filed.