Tax Credits & Incentives

Muncie-Delaware County is a strong site selection choice for a variety of reasons, including labor and land availability, transportation access and quality of life. However, the community recognizes that sometimes incentives may be necessary to make a deal possible. Muncie-Delaware County EDA staff is able to assist companies in identifying and exploring applicable incentive programs that are competitive with other metropolitan areas and states.

Tax Increment Financing

The tax Increment Finance (TIF) mechanism in Indiana permits a town, city or county, through a local redevelopment commission, to designate targeted areas for redevelopment or economic development. Those areas can then be designated as “allocation areas” which triggers the TIF process. After such a designation is made, property taxes generated from new construction in the area, rather than going to the normal taxing units, can be set aside and invested back in the area to promote development. These property tax revenues can be leveraged by the issuance of TIF bonds, the proceeds of which also can be used to promote development in the area.

Venture Capital Investement Tax Credit

The Venture Capital Investment Tax Credit program improves access to capital for 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 tax liability.

CReED Tax Credit

Delaware County has Community Revitalization Enhancement Districts. The CReED program entitles a taxpayer to a 25 percent credit against the taxpayer’s state and local income tax liability for a taxable year if the taxpayer makes a qualified investment in that year. This credit can be carried forward up to nine years. Also, all new tax revenues from the investment are captured by the Delaware County Advisory Council on Industrial Development and can be used to reinvest in the area. Those taxes include employee state taxes paid, real and personal property tax, and corporate income tax. This incentive program, combined with tax increment financing, can allow the company to receive CASH UP FRONT, thus reducing up front investment. The CReED program is the most flexible and lucrative incentive available in Indiana.

Certified Technology Park

The Certified Technology Park program was created as a tool to support the attraction and growth of high-technology business in Muncie and Delaware County. 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.

EDGE Tax Credit

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 and may be awarded for a period of up to 10 years.

R&D Tax Credit

This credit (also known as the Research Expense Tax Credit) is based on the increase in Indiana R&D over the prior three-year base. In the base year, research expenses must have been at least half of the research expenses. The credit amounts to 15 percent of qualified research expenses on the first $1 million of investment. The credit is applied against income tax liability and may be carried forward for 10 years. There is no carry back, and the credit is nonrefundable.

Skills Enhancement Fund (SEF)

The Skills Enhancement Fund (SEF) provides financial assistance to existing 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. IEDC typically does not provide reimbursement for training that is required by law.

Industrial Development Grant Fund

The Industrial Development Grant Fund (IDGF) is a state-funded program designed to provide assistance to local units of government for off-site infrastructure. Eligible uses include construction, extension or completion of sewer lines and other drainage facilities, roads and streets, sidewalks, waterlines, rail spurs and sidings, and fiber optics and other IT infrastructure. The project must support new business development, which is defined as either an expansion of an existing company or the location of a new manufacturing facility. The grant award is based on significant new job creation in the state of Indiana. The amount is determined based on project needs. 

Hoosier Business Investment Tax Credit (HBITC)

The Hoosier Business Investment Tax Credit (HBITC) encourages capital investment in Indiana by providing a credit against a company’s Indiana tax liability. The amount is based on a company’s qualified capital investment with the final amount determined by the Indiana Economic Development Corporation.

Headquarters Relocation

Indiana provides a tax credit to corporations that relocate their headquarters to Indiana. The credit equals half the moving costs and is assessed against the corporation’s state tax liability. Indiana’s Department of Revenue determines eligibility.

Technology Enhancement Certification for Hoosiers (TECH)

The Technology Enhancement Certification for Hoosiers (TECH) Fund is a reimbursement grant program designed to help existing Indiana companies meet the demands of the new information economy by rapidly increasing the number of certified information technology workers in Indiana.

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.

Tax Abatement

Tax abatements are available for both manufacturing equipment (up to 10 years) and for improvements to real estate (up to 10 years). The length and/or percentage of abatement is tied to capital investment, wages, and jobs. Also, tax abatement is available on information technology and logistical equipment. Please contact us for our “Understanding Tax Abatement Guide” as well as the guidelines for tax abatement from each legislative body.
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Jay Julian
Chief Economic Development Officer, President/CEO
Jay is a native Hoosier, born and raised in Marion, IN. He earned his Bachelor of Arts degree at Millikin University, Decatur, IL in 1979. Jay joined the Muncie Chamber of Commerce on July 1, 2009. Julian is the former Executive Director of Development Services with City of Marion, IN. Prior to this, he was the Planning Director for the City of Anderson, IN. Jay has received awards for IACT Economic Recovery, Historic Preservation Commission Award, and Indiana Black Expo Chairman’s Award.
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Traci Lutton
Vice President, Economic Development
In her role at the Economic Development Alliance, Ms. Lutton leverages economic development resources to sustain and enhance the economic growth, vitality and global competitiveness of Muncie-Delaware County as a superior business location. Lutton markets the community locally, regionally, nationally, and internationally to private investors, corporations, and site selectors through recruitment trips, website, tradeshows and other methods. Traci has knowledge and experience with a range of site selection and development services.
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Todd Donati
Director, Muncie Redevelopment Commission
In his role as Director of the Muncie Redevelopment Commission, Todd Donati works closely with city administration and the Economic Development Alliance. Donati also serves as the Administrator of the Muncie Industrial Revolving Loan Fund.
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Ashley Surpas
Economic Development Coordinator
Ashley Surpas, from Muncie, Indiana, came to the Muncie-Delaware County Economic Development Alliance in July of 2012 after graduating from Ball State University with a Bachelor of Political Science, a Master of Public Administration, and a Master of Executive Development for Public Service. Surpas volunteers with Project Leadership in Delaware County and serves on the Anderson-Muncie Public Transportation Coalition.