BUSINESS INCENTIVES — STATE
a resource guide of business incenƟves available through the State of Indiana, compiled by the
Warsaw/Kosciusko County Chamber of Commerce
BUSINESS INCENTIVES â€” STATE
PROGRAMS AND INITIATIVES Indiana Development Funds The Toolbox Guide to Development Funds, managed by Ball State University, is a comprehensive listing of grants, loans, tax programs, and incentives available in the State of Indiana. Listed in the form of a searchable database, these programs provide information those entrepreneurs require to connect to projects that best fit their needs.
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 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.
Small Business Innovative Research (SBIR) and Small Business Technology Transfer (STTR) Programs The Small Business Innovation Research and Small Business Technology Transfer programs stimulate technological innovation and provide opportunities for Indiana small businesses to participate in federally funded research and development programs.
21st Century Research and Technology Fund The 21st Century Research and Technology Fund stimulates the process of diversifying Indianaâ€™s economy by financially supporting Indiana companies that are developing and commercializing advanced technologies in Indiana.
BUSINESS INCENTIVES — STATE
TAX CREDITS AND EXEMPTIONS Economic Development for a Growing Economy (EDGE) EDGE is a refundable tax credit that can be offered in situations where Indiana is competing against another state or country for a company’s site location investment. EDGE credits are calculated as a percentage of payroll tax withholding for net new Indiana jobs. The company must commit to maintaining operations in Indiana for at least two years beyond the term of its EDGE award.
Headquarters Relocation Tax Credit When a business relocates it’s corporate headquarters (defined as the location of the principal office of the principal executive) to Indiana, it is entitled to a credit against is state tax liability equal to half of the costs incurred relocating the headquarters. A company must have worldwide annual revenue of at least $100-million to qualify.
Hoosier Alternative Fuel Vehicle Fuel Manufacturer Tax Credit This program provides a credit up to 15%, as determined by IEDC, of the qualified investment for the manufacture of alternative fuel vehicles. An applicant must compensate its employees as least 150% of the state’s hourly minimum wage and agree to maintain operations for at least 10 years.
Hoosier Business Investment Tax Credit (HBITC) The HBITC 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 (IEDC), based on an analysis of the economic benefits of the proposed investment.
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, they may be eligible for a tax credit calculated as a percentage of qualified rehabilitation expense.
BUSINESS INCENTIVES — STATE
TAX CREDITS AND EXEMPTIONS [cont’d] Media Production Expenditure Tax Credit The Media Production Expenditure Tax Credit exempts sales tax on personal property if the taxpayer acquires the property for direct use in a qualified Indiana media production. In order to be considered for the MPETC, an applicant – upon certification – must commit to spend a minimum of $100,000 for the production of a feature length film, short film, documentary, television series, or program of feature. Eligible expenses may include pre-production, production or post-production expenses.
Patent Income Exemption Taxpayers are exempt from certain income derived from qualified utility and plant patents. Qualified taxpayers are eligible for an exemption of 50% of patent income for each of the first five years. The exemption percentage decreases over the next five years to 10% in the tenth year.
Research & Development Exemption The Research & Development (R&D) sales tax exemption provides a refund of 50% of the Indiana sales tax paid on purchases of eligible research and development equipment purchased after June 30, 2007. Taxpayers may also file a claim for the refund for tax paid on retail transactions that occur after June 30, 2005. The exemption for research and development equipment only applies to equipment purchased for the purpose of research and development activities.
Research and Development Tax Credit (R&D) The research and Development (R&D) Tax Credit provides and incentive for business investment in Indiana by providing a credit against state tax liability for qualified company research expenses. The R&D Tax Credit (also known as the Research Expense Tax Credit) is based on the increase in Indiana R&D over the prior three-year base.
Venture Capital Investment Tax Credit The Venture Capital Investment Tax Credit improves access to capital for 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. Page 4
BUSINESS INCENTIVES â€” KOSCIUSKO COUNTY PROGRAMS AND INITIATIVES Jumpstart Community Advisors Coming Soonâ€Ś North Central Indiana Business Assistance Center, Inc. (NCI-BAC) This program offers business assistance and helps solve critical issues for the regions businesses. NCI-BAC provides business assessments, IOSHA audits, quality audits, financial assessments, start-up planning, and a wide variety of on-site business assistance and counseling.
North Central Small Business Development Center (SBDC) The purpose of the North Central SBDC is to enhance economic development in north central Indiana by assisting new and existing small businesses. The SBDC is funded in part through a cooperative agreement with the U.S. Small Business Administration, the State of Indiana, and many local partners.
WorkOne NorthCentral WorkOne is a publicly-funded workforce development organization that provides employment and training services for employers and workers in the 5-county north central region. WorkOne NorthCentral funding comes from a variety of state, federal, and private sources. WorkOne connects businesses with various state and federal agencies that offer grants and incentives to businesses to help train workers. WorkOne can also assist with hiring a skilled workforce for companies that are expanding operations. Services to employers include customized recruitment events, applicant screening and assessment activates, development and support of training programs (new hires & existing workers), and assistance with a variety of new hire processes based upon employer need.
BUSINESS INCENTIVES — KOSCIUSKO COUNTY PROGRAMS AND INITIATIVES
Customized Recruitment WorkOne NorthCentral assists companies with staffing needs regardless of the company’s size. With Business Service Representatives dedicated to helping the employer, WorkOne NorthCentral will customize each recruitment process to meet the company’s individual needs. WorkOne incorporates recruitment, screening, assessment, pre-training, etc. This can all be accomplished thorough the WorkOne NorthCentral offices to reduce or eliminate any traffic in the employers facility. All at no charge to the employer.
On-The-Job Training Wage Recruitment WorkOne recognizes that – in many cases – the best provider of training is the company itself. To assist employers in providing this training, WorkOne NorthCentral has an on-the-job training (OJT) program to help offset employer expenses for training new hires. Te program reimburses the employer up to 50% of the new hire’s wages for a pre-determined training period (usually 2-8 weeks).
Indiana Career Connect This state of the art job matching system allows employers to post open jobs and search our extensive database of job seekers to find applicants with the right skill and qualifications. Employers can incorporate screening tools and retrieve valuable labor market data to assist in compiling qualified applicant pools at www.indianacareerconnect.com.
BUSINESS INCENTIVES — KOSCIUSKO COUNTY TAX CREDITS & EXEMPTIONS 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 used by local governments – 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 the bonds are tax exempt. Property Tax Abatements Property Tax Phase-In gives local government the option of allowing certain businesses to phase-in new taxes that would otherwise be assessed to the property due to new building construction, purchase of equipment used for manufacturing, research and development, logistical distribution or information technology.
Tax Incremental Financing (TIF) TIF Districts are established by Redevelopment Commissions. New taxes generated as a result of development in the TIF may be used for debt service on bonds issued for the purpose of development and improvements in the district. Proceeds from the bonds may be used to construct public improvements on roads, sewers, & other critical infrastructure.
Information from the following Sources: Indiana Economic Development Corporation
WorkOne Indiana — Kosciusko County
One North Capital, Suite 700 Indianapolis, Indiana 46204 800-463-8081
715 South Buffalo St. Warsaw, Indiana 46580 574-269-3050
www.gotoworkone.com Page 7
BUSINESS INCENTIVES — KOSCIUSKO COUNTY
Warsaw/Kosciusko County Chamber of Commerce 313 South Buﬀalo St., Ste. A Warsaw, IN 46580 574-267-6311
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