Local & State Incentives

If a commercial or industrial building that has sat 100% vacant for a year or longer becomes occupied, the owner/occupant can apply for the eligible vacant building property tax deduction. Documentation must be provided proving that the building has been unoccupied, but actively marketed for sale or lease, for at least a year. The deduction is 100% of existing real property taxes for year one and a 50% deduction in year two.

Businesses located within the Downtown Improvement District or within an Economic Development Target Area can apply for a façade grant from the City of Fort Wayne. It is a 50% matching grant worth up to $40,000. A property owner must work with city planning staff to make sure façade improvements meet certain guidelines.

The Foreign Trade Zone (FTZ) program operates in a 12-county region in northeast Indiana. Any company within this area can apply to be a FTZ operator, allowing it to defer or even void payment of import duties, and often enjoy a lower tariff rate. Restrictions, limitations, and regulations regarding how much merchandise can be brought into the country are eased or eliminated as long as the merchandise remains in the FTZ.

The Community Development Corporation (CDC) of Northeast Indiana facilitates three loan programs for new and existing businesses interrelated with job creation. These programs can fund a variety of business expenses, including building purchase, renovation or construction, equipment, and working capital, ranging in size from $30,000 up to $5.5 million on the CDC portion of the project.

Northeast Indiana Works connects with various state and federal agencies to 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.

The New Markets 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. Taxpayers receive a Federal Tax Credit for making qualified equity investments in designated Community Development Entities (CDE).

Tax phase-ins give local governments 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.

The federal Opportunity Zones (OZ) program is an economic development tool aimed at catalyzing new, long-term investments and development in economically challenged urban and rural communities across the country. Allen County is home to 10 Qualified OZs, and local incentives may be eligible for use in conjunction with the OZ program.

SEED focuses on programs that support entrepreneurship, innovation, technology development, and small business development. SEED also offers tax incentives (investment deduction of 100% up to 10 years, abatement deductions for vacant buildings, and personal property assessed value floor exemption) to businesses locating in the SEED boundaries. The district is located in the heart of the community, along the railroad corridor that runs from east to west just south of downtown. The district also includes several urban corridors.

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.

The Employer Child Care Tax Credit strengthens Indiana’s employer childcare tax credit by expanding eligibility, broadening qualifying expenses, and supporting Indiana employers and working families. To be eligible, employers must have fewer than 500 employees. The tax credit allows operating expenses, not just capital expenses, to qualify for the credit, and it permits employers to partner with third-party intermediaries to offer childcare services. The credit equals 50% of qualified childcare expenditures with a maximum credit of $100,000 per employer per year, and any unused portion can be carried forward for up to three years.

The Data Center Gross Retail and Use Tax Exemption provides a sales and use tax exemption on purchases of qualifying data center equipment and energy to operators of a qualified data center for a period not to exceed 25 years for data center investments of less than $750 million. If the investment exceeds $750 million, the IEDC may award an exemption for up to 50 years. This program is established by Indiana Code § 6-2.5-15. Local governments may also provide a personal property tax exemption on qualified enterprise information technology equipment to owners of a data center who invest at least $25 million in real and personal property in the facility.

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.

The Film and Media Tax Credit is available to taxpayers for qualified media production expenditures in Indiana. Qualified media production includes feature-length film, television series or program, music production, and digital media production. The credit may not exceed 30% of the taxpayer’s qualified production expenditures.

The HQRTC provides a nonrefundable tax credit to a business that relocates its headquarters to Indiana.  Businesses with at least $50 million in worldwide revenues must commit to relocating their headquarters to Indiana and employment at least 75 Indiana residents by the expiration of the tax credit agreement.

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 Corp. (IEDC), based on an analysis of the economic benefits of the proposed investment.

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.

Power Up Indiana is a state workforce initiative that helps employers strengthen their existing teams through training, upskilling, and internal advancement. The program supports companies that invest in current employees, helping build stronger talent pipelines, improve retention, and create career pathways tied to wage growth.

The Redevelopment Tax Credit incentivizes redevelopment of distressed properties. To be eligible for the credit, the taxpayer must make a qualified investment (approved by the IEDC) in the redevelopment, rehabilitation, or betterment of real property located within a qualified redevelopment site. A qualified redevelopment site can be composed of vacant or underutilized property. The amount of credit that may be awarded is up to 30% of the total cost of the project. Projects that qualify for New Markets Tax Credits or that are located in a designated Opportunity Zone may be eligible for an additional 5% credit.

Research & Development credits provide a credit against state tax liability for qualified company research expenses.

The STOI provides an incentive to redevelop, rehabilitate or preserve vacant and underutilized land and buildings in community centers, downtowns and Main Streets. The initiative leverages the Redevelopment Tax Credit (RTC) to provide for-profit and non-profit developers an assignable income tax credit for investing in the revitalization of communities, improving quality of place and building capacity at the local level.  The credit is equal to the amount of qualified investment made by the taxpayer during the taxable year, multiplied by a percentage determined by the IEDC (not to exceed 30%).

The Venture Capital Investment Tax Credit program improves access to capital for fast growing Indiana companies by providing individual and corporate investors an additional incentive to invest in early- stage firms and qualified investment funds. Investors who provide qualified debt or equity capital to qualified Indiana businesses or qualified investment funds may receive a credit against their Indiana tax liability.