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Indiana Basic Business Taxes 2012

Economic development, finance, and tax organizations provide a range of incentive programs to initiate new business and commercial investment. Specific programs include Economic Development for a Growing Economy (EDGE) Tax Credits, Headquarters Relocation Tax Credits, and Hoosier Business Investment Tax Credits (HBI).

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Grants and Incentives
21st Century Research and Technology Fund:
Indiana's 21st Century Research and Technology Fund (21 Fund) focuses on entrepreneurial ventures that have demonstrated a market potential for commercialization of innovative technologies. The 21 Fund provides financial support to highly innovative Indiana-based companies, thereby helping these firms make the transitional leap from general research and development to product development while also creating high-wage, high-skill, high-tech Indiana jobs and diversifying the state's economy. The 21 Fund encourages an environment of innovation and cooperation among Indiana universities and businesses to promote research activity through collaborative partnerships.

Industrial Development Grant Fund:
The Industrial Development Grant Fund provides financial support for infrastructure improvements in conjunction with projects creating jobs and generating capital investment in Indiana. This grant provides money to local governments for off-site infrastructure projects associated with an expansion of an existing Indiana company or the location of a new facility in Indiana.

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 during the next five years to 10 percent in the 10th year. The total amount of exemptions claimed by a taxpayer may not exceed $5 million per year. This benefit is available only to companies with 500 or fewer employees.

Skills Enhancement Fund (SEF):
The Skills Enhancement Fund (SEF) provides financial assistance to businesses committed to training its existing or expanding workforce. Trainees must be permanent, full-time, Indiana residents. SEF reimburses eligible training expenses during a two-year term. IEDC does not provide reimbursement for training for: (1) new employee orientation, (2) compensation of trainee wages during the training, and (3) OSHA or other legally required safety training. Companies can receive reimbursement of up to 50% of eligible training expenses. Businesses receiving SEF training assistance must commit to continuing their operations and maintain certain employment levels at the location where the SEF training assistance is provided for at least five years after the 2-year training grant term is completed.

Shovel Ready Program:
Indiana's Shovel Ready program improves the ability of Indiana communities to attract new economic development and jobs while reducing the site selection and facility construction time for business. The Shovel Ready program lowers the cost of site development and improves efficiency of the state and local permitting process by certifying sites as "ready for development." The program strives to reduce up to 30 percent of the total permit time at the state level for businesses that choose to move into a Shovel Ready site.

Regulatory Ombudsman:
The Indiana Economic Development Corporation's regulatory ombudsman assists in the process of obtaining the permits and approvals necessary for a business operation. The ombudsman serves as a liaison between companies, communities, local economic development organizations and regulatory agencies.

Indiana State Contact:
Indiana Economic Development Corporation
One North Capitol, Suite 700
Indianapolis, IN 46204
Toll-free: 800.463.8081
Tel: 317.232.8800
Fax: 317.232.4146

Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.