Property Tax Abatements
Tax phase-in gives local government the option of allowing certain businesses to phase-in those new taxes that would otherwise be assessed to their property because of new building construction or the purchase of equipment used for manufacturing, research and development, logistical distribution, and information technology.
Industrial Revenue Bonds
Industrial Revenue Bonds, also called Economic Development Revenue Bonds provide financing for economic development projects. The proceeds from the bonds, which can be issued by a local government, are loaned to businesses to pay for buildings or other capital investment projects. The bonds must be paid back by the company. As the issuer of the bonds, the local government’s participation typically results in favorable interest rates and longer terms. Most often, these bonds are tax exempt.
Tax Increment Financing
TIF districts are established through redevelopment commissions. New taxes generated as a result of development in the TIF may be used as debt service on bonds issued for the purpose of developments and improvements in the area. Proceeds from the bonds may be used to construct public improvements on roads, sewers, etc.
Community Revitalization Enhancement Districts (CReED)
The Community Revitalization Enhancement District (CReED) tax credit entitles a taxpayer to a 25% credit against the taxpayer’s state and local tax liability for a taxable year if the taxpayer makes a qualified investment in that year. The investment must be for the redevelopment or rehabilitation of property located within a CReED designated under statute and must be approved by the Indiana Department of Commerce.
New Market Tax Credits
The New Market Tax Credit Program is an initiative of the Community Development Financial Institutions Fund, a department of the U.S. Treasury, in support of its mission to expand the capacity of financial institutions to provide capital, credit, and financial services in underserved markets. Tax payers receive a Federal Tax Credit for making qualified equity investments in designated Community Development Entities (CDE). For a developer, participating in a NMTC program means access to loans lower than the market rate, subordinated debt, and enhanced equity arrangements. The tax credit totals 39% over a seven year period, and the investment must in turn be used by the CDE to substantially provide investments in low-income communities. A low-income community is any population census tract in which at least 20% of its population is at poverty level, or median family income (MFI) is at or below 80% of the area MFI. Ideal projects leverage additional sources of funding.
City of Fort Wayne
Community Revitalization Enhancement District Tax Credit (CReED)
The Community Revitalization Enhancement District (CReED) Tax Credit is available to taxpayers that make qualified investments for the redevelopment or rehabilitation of property located within a revitalization district. Only those projects that the IEDC expects to have a positive return on investment will be considered. Eligible costs include acquisition, rehabilitation, architectural and engineering services, environmental remediation, construction management and demolition.
Economic Development for a Growing Economy Tax Credit (EDGE)
The Economic Development for a Growing Economy (EDGE) is a refundable tax credit program that rewards companies creating jobs and contributing to the growth of Indiana’s economy. EDGE credits are calculated as a percentage of payroll tax withholding for net new Indiana jobs. EDGE credits may be awarded for a period of up to 10 years.
Hoosier Business Investment Tax Credit (HBITC)
This 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, based on an 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 requiringsignificant 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.
Venture Capital Investment Tax Credit
The Venture Capital Investment Tax Credit was established to improve access to capital to fast growing Indiana companies by providing individual and corporate investors an additional incentive to invest in early stage firms. Investors who provide qualified debt or equity capital to Indiana companies receive a credit against their Indiana income tax liability.
Headquarters Relocation Tax Credit
When a business relocates its corporate headquarters (defined as the location of the principal office of the principal executives) to Indiana, it is entitled to a credit against its state tax liability equal to half of the costs incurred in relocating the headquarters. A company must have a worldwide annual revenue of at least $100 million to qualify.
Patent Income Exemption
The Patent Tax Exemption allows certain income derived from qualified patents to be exempt from taxation. The Tax Exemption for Patent-Derived Income defines qualified patents to include only utility patents and plant patents. The total amount of exemptions claimed by a taxpayer in a taxable year may not exceed $5 million.
R & D Tax Credit
The Research and Development credit provides a credit against state tax liability for qualified company research expenses.
21st Century Research and Technology Fund
The Indiana 21st Century Research and Technology Fund was created to stimulate the process of diversifying the State’s economy by developing and commercializing advanced technologies in Indiana. The Board, representing most of the academic and commercial sectors of the State, approves awards.
Small Business Innovation Research Initiative (SBIR/STTR)
The Small Business Innovation Research (SBIR) – along with its sister program, the Small Business Technology Transfer program (STTR) – are highly competitive and encourage small businesses to explore their technological potential. SBIR/STTR funding is available from 11 participating agencies throughout the United States and focuses on various technological areas.
Loan Guaranty Program
IEDC can provide a loan guaranty to a lender for the benefit of a high-growth/high-skilled company, manufacturer, rural development project, value-added agricultural enterprise or another type of business that creates or retains a significant number of Hoosier jobs.
Capital Access Program (CAP)
The Capital Access Program (CAP) is a small business credit enhancement program that creates a specific cash reserve fund for the lender to use as additional collateral for loans enrolled in the Program. CAP allows lenders to consider loans that might not meet conventional lending requirements.
Certified Technology Park Program
The Certified Technology Parks program supports the attraction and growth of high-technology business in Indiana and promotes technology transfer opportunities. Designation as a Certified Tech Park allows for the local recapture of certain state and local tax revenue which can be invested in the development of the park. Allen County, Indiana’s Certified Technology Park is the Northeast Indiana Innovation Center.
Shovel Ready Program
The Shovel Ready Program is a new state program created to help communities certify sites as “ready for development.” Shovel Ready is designed to ultimately help companies locate and develop a property site quickly. This provides a competitive advantage for Indiana and gets Hoosier jobs here faster. Allen County has more certified Shovel Ready sites available than any other county in the state of Indiana: Silverado Industrial Park and James E. Kelley Commerce Aerocentre.
Industrial Development Grant Fund (IDGF)
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. State funding through the IDGF program must be matched by a combination of local government and company financial support.
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.
Northeast Indiana Works connects with various state and federal agencies offer grants and incentives to businesses to help train workers. Northeast Indiana Works can also assist with hiring a skilled workforce for companies that are expanding operations.