Tax Credits

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.
 
 
R & D Tax Credit
 
The Research & Development Tax Credit provides an incentive for business investment in Indiana by providing a credit against state tax liability for qualified company research expenses.  The tax credit is based upon the increase in Indiana R&D over the prior three-year basis, and equals up to 15% of the first $1,000,000 of investment, and can be carried forward 10 years.   

 
Hoosier Business Investment Tax Credit (HBITC & HBI-L)
 
The Hoosier Business Investment Tax Credit 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.
 
The Hoosier Business Investment Tax Credit for Logistics (HBI-L) provides incentives to businesses in support of certain eligible logistics investment. The non-refundable corporate income tax credits are calculated as a percentage, as determined by IEDC and not to exceed 25%, of the eligible logistics investment to support the project. The credit may be certified annually, based on the phase-in of eligible logistics investment, over a period of two full calendar years from the commencement of the project.
 
 
Industrial Recovery Tax Credit
 
The Industrial Recovery Tax Credit provides an incentive for companies to invest in facilities requiring significant 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 the Headquarters Relocation Tax Credit, which is a credit against its state tax liability equal to half of the costs incurred in relocating the headquarters. The corporation must have annual worldwide revenue of at least $50 million in the taxable year immediately prior to the year in which application is made for the credit. After relocation, the corporation must have 75 employees in Indiana.  
 
 
Work Opportunities Tax Credit
 
Work Opportunity Tax Credit (WOTC) is a federal tax credit program that offers incentives to employers who hire individuals who have consistently had difficulty in securing and retaining employment.  The credit helps offset the federal tax liability of private, for-profit employers.  The program covers only new hires who have not worked for the employer in the past.