Secretariat

U.S. State Programs for New Investments

Available Investment Programs

Indiana

Taxes

• Indiana's Economic Development For a Growing Economy (EDGE) program offers tax credits designed to ensure Indiana is competitive when compared to other states. EDGE tax credits are based on the payroll associated with net new jobs created. Payroll taxes, currently 3.1% in Indiana are withheld from new employees for a period of ten years.
• Property Tax Abatement is available for property owners who make improvements to the real property or install new or used manufacturing and/or R&D equipment. Must be located in a designated Economic Revitalization Area (ERA). Abatement is a declining percentage of the increase in assessed value of the improvement, spread over a period of no more then 10 years
• State designated Enterprise Zones are used to stimulate development in distressed areas. Qualified businesses are eligible for certain tax benefits, which include, a credit equal to 100% of property-tax liability on inventory, exemption from Indiana gross income tax on the increase in receipts from the base year, state investment cost credit (up to 30% of purchase price) for individuals purchasing ownership interest in the business, tax deduction for zone resident employees equal to the lesser of 50% of their adjusted gross income or $7,500, a state loan interest credit, and state employee expense credit for employees located within the zone.
• Interstate Inventory Tax exemption is available for finished goods awaiting shipment to out-of-state destinations.

Employee Training

• Indiana Department of Commerce's Indiana's Skills Enhancement Fund (SEF) offers companies, in the form of a grant, a reimbursement up to 50% to a maximum $200,000 of eligible training costs for new and existing workers. Companies may re-apply after two years to fund additional training.
• The Gain Education and Training program grants up to $200,000 in funds to be used for training existing employees to obtain industry recognized credentials such as an apprenticeship, Certificates of Technical Achievement, or a college degree.
• The Workforce Investment Now program also grants up to $200,000 in funds for the training existing employees resulting in industry recognized credentials. Companies having recognized risk-factors such as non-seasonal layoffs, a reduction in productivity or quality, loss of a product line, or other production challenges are eligible for this grant.
• The Skilled Trades Apprenticeship program grants up to $200,000 in funds for manufacturing firms with training costs associated with industrial trade apprenticeships and upgrading skills of journeymen. The maximum amount of the grant is $200,000 and the training must be done through Ivy Tech State College.

Financing

• Tax Increment Financing provides temporary allocation of increased tax revenues resulting from economic development or redevelopment to be used to pay for the capital improvements needed to induce the development.
• The state issues both tax-exempt and taxable industrial revenue bonds for which the interest is generally exempt from federal income tax.
• The Loan Guarantee Program offers flexible, principal balance guarantees to a maximum of $2 million for a term no longer than 20 years. The project must create or retain a significant number of jobs.
• The Volume Cap program allocates Indiana's private activity bond volume to companies giving them access to low cost, long-term financing. Approximately half of the annual volume cap of $440 million is awarded to manufacturing projects each year. The funds are distributed trough a competitive process based on number of new jobs created, wage rates of existing jobs and capital investment expenditures per job.

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