The state of Indiana offers business support and expertise to companies that are investing and creating jobs in Indiana. Indiana places special emphasis on the automotive, life sciences, energy, and national security industry sectors, and supports companies involved in advanced manufacturing, logistics, information technology and research and development. Indiana also provides financial assistance to qualified high-tech firms and small businesses and offers a variety of programs to support new business start-ups and business expansion and growth.

Process for Application of Incentives

Indiana Programs and Initiatives


Small Business Innovation Research Initiative
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs stimulate technological innovation and provide opportunities for Indiana small businesses to participate in federally funded research and development programs.

More Information on the Small Business Innovation Research Initiativ

Venture Capital Investment Tax Credit
The Venture Capital Investment Tax Credit improves 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.

More Information on the Venture Capital Investment Tax Credit

Indiana Small Business Development Center
The Indiana Small Business Development Center (ISBDC) offers free and low-cost information, management counseling, and educational services to Indiana small business owners and potential entrepreneurs. The ISBDC helps Indiana businesses grow and create new jobs within the state.

More Information on the Indiana Small Business Development Center

Indiana Certified Technology Parks
The Certified Technology Parks program was created as a tool to support the attraction and growth of high-technology business in Indiana and promote technology transfer opportunities. Designation as a Certified Tech Park allows for the local recapture of certain state and local tax revenue which can be invested in the development of the park.

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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. The searchable database of programs and provides the information entrepreneurs require to connect to projects that best fit their needs.

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Indiana Tax Credits

Economic Development for a Growing Economy Tax Credit (EDGE)
The Economic Development for a Growing Economy (EDGE) is a program designed to encourage companies to expand or locate operations in Indiana.

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Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit
This program provides a credit up to 15 percent, as determined by IEDC, of the qualified investment for the manufacture of alternative fuel vehicles. An applicant must compensate its employees at least 150 percent of the state’s hourly minimum wage and agree to maintain operations for at least 10 years. 

More Information on the Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit

Hoosier Business Investment Tax Credit
The Hoosier Business Investment Tax Credit (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.

More Information on the Hoosier Business Investment Tax Credit

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 a credit against its state tax liability equal to half of the costs incurred in relocating the headquarters. A company must have a worldwide annual revenue of at least $100 million to qualify.

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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.

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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.

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R&D Tax Credit
The Research and Development (R&D) Tax Credit provides an 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.

More Information on the R&D Tax Credit

Venture Capital Investment Tax Credit
The Venture Capital Investment Tax Credit improves 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.

More Information on the Venture Capital Investment Tax Credit

Exemptions

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 percent of patent income for each of the first five years. The exemption percentage decreases over the next five years to 10 percent in the tenth year.

More Information on the Patent Income Exemption

R&D Sales Tax Exemption
The Research and Development (R&D) sales tax exemption provides a refund of 50 percent of the Indiana sales taxes 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.

More Information on the R&D Sales Tax Exemption