Real Property Tax Abatement
A tool that allows real property taxes to be phased in over a period of ten years. Tax abatements usually provide an almost immediate increase in the assessed value of property due to its upgraded use, resulting in an increase in the taxes collected.
Personal Property Tax Abatement
A tool that allows personal property (equipment) taxes to be phased in over a period of time, up to 10 years.
Tax Increment Financing (TIF)
A method of facilitating development or redevelopment for a business by utilizing future tax revenues to pay for necessary improvements. This technique is often used for financing a capital project from the stream of revenue that will ultimately be generated by the project, to promote business development and job creation.
State of Indiana Incentives
Economic Development for a Growing Economy (EDGE)
Economic Development for a Growing Economy (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 credit.
Hoosier Business Investment Tax Credit (HBITC)
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 analysis of the economic benefits of the proposed investment.
Industrial Recovery Tax Credit (Dinosaur Building)
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.
Skills Enhancement Fund (SEF)
The Skills Enhancement Fund (SEF) provides financial assistance to businesses committed to training their workforce. Trainees must be Indiana residents. SEF reimburses eligible training expenses over a two‐year term. Companies may reapply for additional SEF funds after their initial two‐year term. IEDC typically does not provide reimbursement for training that is required by law.
Industrial Development Grant Fund (IDGF)
The Industrial Development Grant Fund (IDGF) provides financial assistance to local governments for infrastructure projects associated with the expansion of an existing facility or the location of a new facility.
Research & Development Tax Credit
The Research & Development Tax Credit provides a tax credit equal to 15% of a company’s first $1,000,000 of qualifying Research & Development expenditures, giving Indiana one of the highest Research and Development tax credit percentages in the country.