Property Tax Phase-ins (aka Tax Abatements)
Tax phase-ins give 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, agriculture, and information technology.
Eligible Vacant Building Deductions
If a commercial or industrial building that has sat 100 percent 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 percent of existing real property taxes for year one and a 50-percent deduction in year two.
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.
Northeast Indiana Works
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.
Businesses located within the Downtown Improvement District or within an Economic Development Target Area can apply for facade grants from the City of Fort Wayne. They are matching grants worth up to $20,000. Property owners must work with city planning staff to make sure facade improvements meet certain guidelines.
The Community Development Corporation of Northeast Indiana facilitates five 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 a few thousand dollars up to $5.5 million on the CDC portion of the project.
Summit City Entrepreneur and Enterprise District (SEED)
Administered by Fort Wayne’s Urban Enterprise Association, SEED focuses on programs that support entrepreneurship, innovation, technology development, and small business development. To support these initiatives, grant money up to $1 million is available annually for five years and is funded by the Indiana Economic Development Corporation. SEED also offers tax incentives (Investment Deduction of 100 percent up to 10 years, Abatement Deductions for Vacant Buildings, and Personal Property Assessed Value Floor Exemption) to businesses locating in the SEED boundaries. The boundaries of the district are 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.
Foreign Trade Zone #182
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. Visit BizFTZ.com for more information.
More local resources:
Economic Development for a Growing Economy (EDGE) Tax Credits
This is a refundable tax credit program that rewards companies for 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 20 years.
Hoosier Business Investment (HBI) Tax Credits
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.
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.
Community Revitalization Enhancement District (CReED) Tax Credits
Community Revitalization Enhancement District (CReED) Tax Credits are 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.
Redevelopment Tax Credit
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.
Patent Income Exemptions
Patent Tax Exemptions allow 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.
Research and Development (R&D) Tax Credits
Research & Development credits provide a credit against state tax liability for qualified company research expenses.
Film and Media Tax Credit Tax
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.
Elevate Ventures is a private venture development organization that nurtures and develops emerging and existing high-potential businesses into high-performing, Indiana-based companies. Elevate Ventures accomplishes this by providing access to capital, rigorous business analysis, and robust advisory services that connect companies with the right mix of resources businesses need to succeed long term.
Next Level Jobs
Next Level Jobs is a campaign that targets working-age Hoosiers and Indiana employers with the goal of skilling up our workforce to fill the high-wage jobs available right now in every part of the state. The Employer Training Grant can provide training reimbursement up to $5,000 for each new employee that is trained, hired, and retained for six months. The Workforce Ready Grant provides free training for Hoosiers in the state’s highest-demand jobs.