New Laws Affecting Business Taxes, Investment, and Workforce Training Become EffectiveOn July 1st, several new laws became effective which can be used as incentives to retain and attract jobs and investment to our communities.
These laws reduce business taxes, increase tax credits for infrastructure investments, increase transportation funding, increase venture capital funding, and increase funding for new and incumbent workforce training.
Highlights of these new laws include:
- Reduction in the personal income tax rate to 3.3% for years 2015-2016 and to 3.23% for 2017 and beyond. Currently, the personal income tax rate is 3.4% which is 9th lowest in the U.S.
- Repealing of the inheritance tax.
- Establishing a Major Moves 2020 Trust Fund for major highway expansion projects funded at $200 million per year from 2003-2014.
- Increase in funding for the 21st Century Fund, a venture capital fund administered by Elevate Ventures, to $40 million. (Increase of $10 million from last budget cycle.)
- Increase in funding for the Skills Enhancement Fund (SEF), a state incentive used for new and incumbent workforce training, to $25 million. ($7 million increase over last budget cycle.)
- Clarification that SEF can be used for incumbent workers.
- Expansion of the sales tax exemption available for research and development activities.
Addition of logistics investments as a specific type of qualified investment under the Hoosier Business Investment Tax Credit. This credit is for fixed capital investments in logistics and supply chain industries with a maximum 25% credit to be capped at $10 million annually starting in 2014.
Please call Marshall County Economic Development at (574) 935-8499 if you have any questions on these new laws.
Source: Inside Indiana Business & MCEDC