State of Indiana Programs
Economic Development for a Growing Economy
Businesses that expand in Indiana or will be operating in the state as a result of the program are eligible. The project must create new, competitively paying jobs for Indiana residents. Credits are considered when a project would otherwise locate in a different state, and when local governments have committed significant incentives. Companies agree to operate in the state for at least twice as long as the duration of the credits.
This program provides tax credits based on payroll. Indiana individual income tax withholdings from company employees can be credited against the company’s Indiana corporate income tax liability. Excess withholdings will be refunded to the company.
The credits have no effect on the employee’s income tax liability.
Skill Enhancement Fund (SEF)
The Skill Enhancement Fund (SEF) 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. International Economic Development Council (IEDC) typically does not provide reimbursement for training that is required by law.
Venture Capital Investment Tax Credit
This 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.
This credit is available to any taxpayer who is an individual or entity that has any state tax liability. Pass through entities whose shareholders have Indiana income tax liabilities are also eligible for the credit. A taxpayer wishing to obtain a credit for investing in a qualified Indiana business must apply to the IEDC for a certification that the proposed investment plan would qualify for a credit. The total amount of tax credits certified by the IEDC for any calendar year may not exceed $12,500,000.
Technology Enhancement Certification for Hoosiers
This is a reimbursement grant program designed to help companies meet the demands of the new information technology economy by increasing the number or certified information technology workers in Indiana. This program provides financial assistance to companies that are committed to training their workers on the latest information technology.