Doing Business

Corporate Income Tax

The Indiana State corporate income tax rate was as high
as 8.50% in 2012 and have worked hard reducing that
rate to 4.9% today.

• No inventory tax
• Right-to-Work State

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 withholdings 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.

HBI Hoosier Business Investment Tax Credit
The Hoosier Business Investment (HBI) Tax Credit is the IEDC’s primary capital investment tool. The HBI tax credit provides an incentive to businesses to support job creation and capital investment that improves the standard of living for Indiana residents. The nonrefundable 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.

Industrial Development Grant Fund
The Industrial Grant Fund (IDGF) provides assistance to municipalities and other eligible entities as defined under I.C. 5-28-25-1 with off-site infrastructure improvements needed to serve the proposed project site. Upon review and approval of the Local Recipient’s application, project specific Milestones are established for completing the improvements. IDGF will reimburse a portion of the actual total cost of the infrastructure improvements. The assistance will be paid as each Milestone is achieved, with final payment upon completion of the last Milestone of the infrastructure project

RTC REDEVELOPMENT TAX CREDIT
The Redevelopment Tax Credit (RTC) provides an incentive for investment in the redevelopment of vacant land and buildings as well as brownfields. This credit, established by Indiana Code § 6-3.1-34, provides companies and developers an assignable income tax credit for investing in the redevelopment of communities, improving quality of place and building capacity at the local level. The IEDC may not award more than $50 million in credits each state fiscal year. Any credit award over $7 million must include a requirement that a portion of the credit be repaid by the company or developer.

Headquarter Relocation Tax Credit
The Headquarters Relocation Tax Credit (HQRTC) provides a nonrefundable tax credit to a business that relocates its headquarters to Indiana. The credit is assessed against the corporation’s state tax liability. The HQRTC is established by Indiana Code § 6-3.1-30.

Data Centers Sales Tax Exemption
Capital Investment Incentive
The Data Center Gross Retail and Use Tax Exemption provides a sales and use tax exemption on purchases of qualifying data center equipment and energy to operators of a qualified data center for a period not to exceed 25 years for data center investments of less than $750 million. If the investment exceeds $750 million, the IEDC may award an exemption for up to 50 years. This program is established by Indiana Code § 6-2.5-15. Local governments may also provide a personal property tax exemption on qualified enterprise information technology equipment to owners of a data center who invest at least $25 million in real and personal property in the facility.

CRED Community Revitalization Enhancement District Tax Credit
The Community Revitalization Enhancement District (CRED) Tax Credit provides an incentive for investment in community revitalization enhancement districts (Indiana Code 36-7-13). The credit is established by Ind. Code 6-3.1-19. Please note that the CRED tax credit is not the same as the CRED financing tool established under Indiana Code 36-7-13. Revenue oversees these incentive programs.

Skills Enhancement Fund Workforce Training Grant
The Skills Enhancement Fund (SEF) provides assistance to companies to support training of employees required to support business growth in Indiana. The grant may be provided to reimburse a portion (typically 50%) of eligible training costs over a period of two full calendar years from the commencement of the project. Grants from the Skills Enhancement Fund may only support training that leads to a post-secondary or nationally-recognized industry credential, or is specialized company training. If the training is provided to an existing employee, the company must also provide an increase in wages. Specialized company training should meet the applicable industry standard or be administered by a third party.