A variety of tax incentive programs are available to encourage business development and growth in Elkhart County.

Local tax incentives are based on three qualifiers:  number of jobs; wages of jobs and investment (real and personal) property.  All incentives require approval in advance of project start.  Elkhart County has streamlined the process in securing incentives for quality investment and job creation.

Please contact the EDC for assistance with your next expansion and/or location decision at 574.293.5627 or edc@elkhartcountybiz.com. Or use our Business Contact Form to receive a call-back from one of our team members.

 

Business Credits & Exemptions in Elkhart County

 

Local & State Tax Structure
Indiana is a pro-growth state for business. Reducing barriers and building better quality environment to live, work and play.

AAA Credit Rating
Top bond rating from all three major credit rating agencies (S&P, Fitch, Moody’s) reinforcing fiscal management by legislative leadership.

Headquarter Relocation Tax Credit
Provides a tax credit to corporations relocating their headquarters to Indiana. Credit is assessed against the corporation’s state tax liability.

R&D Tax Credit
Incentive for business investment in Indiana by providing a credit against state tax liability for qualified company research expenses. Based on the increase in Indiana R&D over the prior three-year base.

R&D Sales Tax Exemption
Taxpayers receive a credit against their Indiana state income tax liability calculated as a percentage of qualified research expenses. Additionally, taxpayers may be refunded sales tax paid from purchases of qualified research and development equipment. The Indiana Department of Revenue oversees these incentive programs.

Patent Income Exemption
A taxpayer may claim the exemption for 10 years with respect to a particular patent. The total amount of exemptions for patent derived income a taxpayer may claim in a taxable year is $5 million.

Business Investment Tax Credit
Non-refundable corporate income tax credits are calculated as a percentage of the eligible capital investment to support the project. The credit may be certified annually, based on the phase-in of eligible capital investment, over a period of two full calendar years from the commencement of the project.

Alternative Fuel Vehicle Manufacturer Tax Credit
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. The Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit

Economic Development for a Growing Economy Tax Credit (EDGE)
Provides incentive to businesses to support jobs creation, capital investment and to improve the standard of living for Indiana residents. The refundable corporate income tax credit is calculated as a percentage (not to exceed 100%) of the expected increased tax withholding generated from new jobs creation. The credit certification is phased in annually for up to 10 years based upon the employment ramp-up outlined by the business.

Corporate Income Tax Reduction
Indiana’s corporate income tax rate is steadily decreasing from the current 6.25% to 4.9% by 2022. The tax rate will continue to drop each year as the decrease is phased-in. Additional tax benefits include:

  • No Inventory Tax
  • Right-to-Work State

 

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