Indiana offers a variety of tax credits to make business growth easier and more economical. The number of jobs created, average wages, and capital invested by your company will determine the amount of tax credits you receive.
Indiana offers a variety of tax credits to make business growth easier and more economical. The number of jobs created, average wages, and capital invested by your company will determine the amount of tax credits you receive.
The following are some of the ways that non-U.S. companies can save money by moving into Indiana:
- Economic Development and Growth Tax Credit (EDGE)
EDGE is a statewide corporate tax credit based on employment. The credit is calculated by multiplying the expected increase in tax withholding (based on the number of new jobs created by the company) by the credit percentage (which cannot be greater than 100%).
The credit is based on employment, so it is returned to the company in proportion to the number of jobs actually created. The credit can be returned to the company whether or not the company has a state income tax liability.
This means that even if the company is not profitable, the credit will be returned to the company at the end of the year. This policy is very beneficial to entrepreneurial companies.
- Skills Enhancement Fund (SEF)
The SEF is designed to help you develop talent that meets the needs of your company. The program reimburses a portion (usually 50%) of the costs of compliance training incurred within two calendar years of participation in the program.
- Indiana Business Investment Tax Credit (HBI)
The HBI is a corporate income tax credit calculated by multiplying the capital investment required for a qualifying project by the credit percentage.
Qualifying capital investment includes the purchase of machinery and equipment related to the project and the cost of building a plant. To receive the credit, the company must have a corporate income tax liability.
- Headquarters Relocation Tax Credit (HRTC)
The HRTC provides a tax credit for companies that relocate their headquarters office to Indiana. The tax credit is half of the relocation cost and is also assessed based on the company's state tax liability.
- Industry Recovery Tax Credit
The industry recovery tax credit is designed to incentivize companies to invest in facilities that require significant rehabilitation or renovation costs.
The amount of the tax credit depends on the age of the project to be rehabilitated. Qualifying rehabilitated sites must be at least 15 years old, have an interior area of at least 5,000 square meters, and have 75% of the available space vacant for one year or more.