Economic Development for a Growing Economy Tax Credit (EDGE)
The Economic Development for a Growing Economy (EDGE) is a refundable tax credit program that rewards companies creating jobs and contributing to the growth of Indiana’s economy. EDGE credits are calculated as a percentage of payroll tax withholding for net new Indiana jobs. EDGE credits may be awarded for a period of up to 10 years.
R & D Tax Credit
The Research & Development Tax Credit provides an incentive for business investment in Indiana by providing a credit against state tax liability for qualified company research expenses. The tax credit is based upon the increase in Indiana R&D over the prior three-year basis, and equals up to 15% of the first $1,000,000 of investment,and can be carried forward 10 years.
This 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, based on an analysis of the economic benefits of the proposed investment.
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.
The Venture Capital Investment Tax Credit was established to improve 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.
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.
Work Opportunities Tax Credit
Work Opportunity Tax Credit (WOTC) is a federal tax credit program that offers incentives to employers who hire individuals who have consistently had difficulty in securing and retaining employment. The credit helps offset the federal tax liability of private, for-profit employers. The program covers only new hires who have not worked for the employer in the past.
Hoosier Alternative Fuel Vehice Manufacturer Tax Credit
This program provides a credit up to 15% of the qualified investment for the manufacture of alternative fuel vehicles. Applicants must compensate employees at least 150% of the state's hourly minimum wage, and agree to maintain operations for at least 10 years. This program is designed to foster job creation and higher wages in IN; reduce dependency on imported energy sources; and reduce pollution from traditional fueled vehicles.
Program to exempt sales tax on personal property if property is purchased directly for use in a qualified Indiana media production. Provides a credit for up to 15% of the amount spent for qualified production ventures, and is refundable.