Corporate Income Tax

Indiana’s Corporate Adjusted Gross Income Tax is calculated as a flat percentage of the company’s adjusted gross income attributable to the company’s Indiana sales. To determine Indiana’s share of an interstate or international corporation’s taxable income, a company’s adjusted gross income is apportioned based upon a single-sales factor with Indiana’s portion based solely on the portion of the company’s sales in Indiana. Adjusted gross income is a company’s federal adjusted gross income with certain adjustments. This method of determination simplifies tax calculations for corporations and does not apply to S corporations and not-for-profit organizations.

Corporate Tax Rates

The applied Corporate Income Tax rate is being cut from the current 7 percent to 4.9 percent by 2021. The tax rate will continue to drop each year as the decrease is phased-in. As of July 1, 2015, the rate will be 6.5 percent.

Single Sales Factor

Since 2011, Indiana has used the single-sales factor for apportioning corporate income tax. The single sales factor calculates the Indiana portion based solely on the portion of a company’s sales in Indiana.

Sales & Use Tax

Indiana’s Sales and Use Tax is calculated at a rate of 7 percent. In manufacturing, the following are exempt from the sales tax: raw materials, equipment, and utilities. Wholesale sales, items used directly in production, and sales made in interstate commerce are exempt. In addition, the purchase of research and development equipment is exempt from the tax.

Property Tax

Real and personal property tax is assessed at 100 percent of market value. Tax rates and exemptions vary among local jurisdictions.  Pursuant to state law, homeowner property taxes are capped at 1 percent of a home’s assessed value, apartments and agriculture land are capped at 2 percent of assessed value, and business property taxes are capped at 3 percent of assessed value.

Inventory Tax

Indiana has no gross receipts tax and no inventory tax.

Local Income Tax

Muncie-Delaware County does have a modest local income tax amounting to 1.05 percent. This pertains to employee wages and is not a tax on corporations.

Individual Income Tax

Indiana’s personal income tax is 3.4 percent of federal adjusted gross income (with certain exemptions and deductions).

Patent Income Exemption

Taxpayers are exempt from certain income derived from qualified utility and plant patents. Qualified taxpayers are eligible for an exemption of 50 percent of patent income for each of the first five years. The exemption percentage decreases over the next five years to 10 percent in the tenth year. The total amount of exemptions claimed by a taxpayer may not exceed $5 million per year. This benefit is available only to companies with 500 or fewer employees.
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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.