TAX ABATEMENT
A tool that allows taxes on real/and or personal property to be phased in over a period of time, usually three to 10 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.
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 GRANTS & INCENTIVES (Indiana)
21st Century Research and Technology Fund
The fund stimulates the process of diversifying the state's economy by developing and commercializing advanced technologies in Indiana, and it emphasizes the creation of academic-sector/commercial-sector partnerships.
Clean Energy
Tax credit program to support Indiana's advanced agricultural industry and provide an incentive for development of renewable energy.
Economic Development for a Growing Economy (EDGE)
Economic Development for a Growing Economy (EDGE) tax credits are based on the added payroll for Indiana Jobs created as a result of a project. The payroll taxes withheld from those employees, effectively 3.1% in Indiana, are the basis for the credits. Tax credits can be awarded for a period of time not to exceed ten years and the company must agree to operate in the state for at least twice as long as the duration of the credits. The Credits awarded by the Indiana Department of Commerce are first applied against any Indiana corporate income tax liability, and any excess amount earned is refunded directly to the company. Eligible projects are those with a competitive disparity in projects costs, including incentives and the cost of doing business, between an Indiana location and a competing state.
Hoosier Business Investment Tax Credit (HBITC)
The HBITC provides a 30 percent credit on capital investments that lead to the creation of new jobs or increase the level of wages in Indiana. The EDGE board must approve the investment for the credit to be claimed. Qualified investments include the purchase of equipment, infrastructure, new computers or related equipment; costs associated with retooling machinery; and costs associated with construction of building for use in the computer, software, biological sciences or telecommunications industries.
Industrial Development Grant Fund
This state-funded program provides assistance to local units of government for off-site infrastructure projects in support of new business development. Eligible uses include construction, extension or completion of sanitary sewer lines, road, streets, water lines, sidewalks, railroad spurs and siding, and fiber optics. The grant amount is determined based on project needs and is designed to supplement local funding sources. Application is made to the Indiana Department of Commerce.
Industrial Recovery Tax Credit (Dinosaur Building)
This tax credit provides an incentive for companies to invest in facilities requiring significant rehabilitation or remodeling expense.
Training - Skills Enhancement Fund
This program provides financial assistance in the form of a grant for reimbursement of training costs. Eligible uses include basic-skills training, transferable-skills training, company-specific skills training and quality-assurance training. This grant can reimburse up to 50% of eligible training costs for new or existing employees. Companies can reapply with the Indiana Department of commerce every two years for a grant amount of up to $200,000.
Training - Advance Indiana
Advance Indiana grants address the needs of established Indiana companies for a skilled workforce. It is designed to promote lifelong learning opportunities for working Hoosiers. The Training initiative develops the transferable skills of workers by providing financial assistance to companies with innovative programs for training their employees. It is available over a two-year period and must result in a portable credential for the employee participating in the training. Portable credentials sought by participants in current training projects include college degrees and advanced industry-recognized certifications. These grants are available through the Indiana Department of Workforce Development.
Technology Enhancement Certification for Hoosiers Fund
(Tech Fund)
The Indiana Department of Commerce, in partnership with the Indiana Department of Workforce Development, created the Technology Enhancement Certifications for Hoosiers (TECH) Fund to help Indiana businesses train their existing information technology professionals. The training must result in a fun-time employee receiving a portable certification in systems administration, systems engineering or software development; a professional certification; or other certification is advanced e-business enabling applications. The Indiana Department of Commerce may offer a maximum award of $50,000, which is based on the number of employees at the applying company.
Indiana Research Expense Tax Credit
(Research & Development Credit)
This program, offered through the Indiana Department of Revenue, supports the research and development of new products and processes within Indiana. It is based on a taxpayer's increased activities conducted in the state of Indiana. The credit allows claims of 10% (raised from 5%) of eligible research expenses. "Qualified Research Expenses" included wages paid to employees for qualified services and amounts paid for supplies used in qualified research. The Research Expense Credit is applied against a taxpayer's income tax liability.
Technology Development Grant Fund
A new funding source established by the Indiana General Assembly, the Grant Fund provides assistance to Certified Technology Parks for capital expenditures and operational expenses incurred by the Park's redevelopment commission. During the life of the Certified Technology Park, funding may be awarded in an amount up to $2,000,000 for leasing, construction or the purchase of capital assets and $2,000,000 for operating expenses, with not more than $500,000 distributed in any one fiscal year. Recognition as a Certified Technology Park must be applied for and is granted by the Indiana Department of Commerce to business districts identified as high-technology areas.
Venture Capital Tax Credit
A credit may be provided for a taxpayer who provides qualified investment capital to a qualified Indiana business. A business is qualified by the Indiana Department of Commerce if:
- it is headquartered in Indiana
- it has average annual revenues of less than $10 million in the
previous two years
- it has at least 50 percent of its employees residing in Indiana or at least 75 percent of the company's assets located in Indiana
- it is not engaged in a business involving real estate, real estate development, insurance, retail sales, oil or gas exploration or
services provided by an accountant, lawyer or physician.
- it is focused on research and development or other technology pursuits.
Compliance Forms
Form SB-1 Statement of Benefits
Real Estate / Personal Property
Form CF-1 Compliance with Statement of Benefits
Real Estate / Personal Property
Form 322 ERA - Application for Deduction from Assessed Valuation of Structures in Economic Revitalization Areas
Form PPID-1 - Application for Deduction from Assessed Valuation (Personal Property Investment Deduction)
Form RPID-1 - Application for Deduction from Assessed Valuation (Real Estate Investment Deduction)
Form 103-EL - Equipment List for New Additions to ERA Deduction
Form 103-ERA - Schedule of Deduction from Assessed Valuation of Personal Property in an Economic Revitalization Area
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