Incentives & Tax Credits

Invest in community growth

For investment in community revitalization enhancement districts (Indiana Code 36-7-13). The credit amount is equal to the amount of qualified investment made by the taxpayer during the taxable year multiplied by 25%. The credit may be passed through (see Indiana Code 6-3.1-19-13). The credit is applied against the taxpayer’s state or local tax liability and may be carried forward to the immediately following taxable years. An application must be approved before an investment is made.

Tax savings for data centers

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.

Incentive for job creation and quality of life investments

An 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 20 years based upon the employment ramp-up outlined by the business.

Local funding for qualifying business projects

Funds may be made available through revenue generated from the City and County’s Economic  Development Income Tax. These funds are committed at the discretion of the Mayor and Board of County Commissioners.

Support for relocating key staff and executives

Moving into a community can be difficult, but moving a number of staff members and making sure they become well-acclimated to the community can be an added challenge. To alleviate this issue, the Economic Development Alliance (EDA) has developed the Executive Relocation Assistance Program as an important component of our community and company partnership. Services can be customized to the needs of the company or transferring executives, but the program generally includes a community presentation, mentor program, temporary housing, access to professional service, school orientation, residential housing incentive, and access to health care.

Lower your startup costs with land incentives

The community is willing to consider land grants or discounted land prices as part of an overall incentive package.

Move your HQ to Indiana

A tax credit to corporations that relocate their headquarters to Indiana. The credit is assessed against the corporation’s state tax liability. The Headquarters Relocation Tax Credit is established by I.C. 6-3.1-30. The Small Headquarters Relocation Tax Credit (S-HQRTC) provides a refundable tax credit to a small, high-growth business that relocates its headquarters or the number of employees that equals 80% of the company’s total payroll to Indiana. The credit is assessed against the corporation’s state tax liability. The S-HQRTC is established by Indiana Code § 6-3.1-30.

Boost capital investment

Incentive to businesses to support job creation, capital investment and to improve the standard of living for Indiana residents. The non-refundable corporate 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, over a period of two full calendar years from the commencement of the project.

Support for film & media projects

Established in the 2022 legislative session by Senate Enrolled Act 361, this offers an income tax credit of up to 30% to help offset certain production expenses, such as acquisitions, filming and sound, labor, and story rights. Some basic qualifications for media production seeking a tax credit: Minimum project budget of $300,000, tax liability in the state of Indiana and distribution plan. A non-transferable, non-refundable tax credit available on an application basis and is evaluated by the Indiana Economic Development Corp.

Assistance with off-site infrastructure improvements

The Industrial Development Grant Fund 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.

Find the talent you need

The Alliance will host customized job fairs in partnership with the local workforce development office to help meet the hiring needs of a company. Fairs include pre-screening stations, interview booths, and computer workstations.

Upgrade to smart manufacturing technologies

These grants have helped manufacturers make innovative capital investments in smart manufacturing within their Indiana operations—leveraging technologies from advanced communications to cobots to the Industrial Internet of Things (IIoT) and beyond. Applications must be for a manufacturer planning to make capital investment in the form of smart manufacturing technologies within their Indiana operation. While there is no size limitation for applicants, small- and medium-sized manufacturers (<500 employees) are heavily favored. The degree to which an applicant is a manufacturer (manufacturing intensity) and relationship to Indiana are also significant considerations.

Tax benefits for investing in underserved communities

Opportunity Zones are economically distressed communities, defined by individual census tact, nominated by America’s governors, and certified by the U.S. Secretary of Treasury via their delegation of that authority to the Internal Revenue Service. Under certain conditions, new investments in Opportunity Zones may be eligible for preferential tax treatment. There are 8,764 Opportunity Zones in the United States, many of which have experienced a lack of investment for decades. The Opportunity Zones initiative is not a top-down government program from Washington, but an incentive to spur private and public investment in America’s underserved communities.

Tax relief for utility & plant patent income

Certain income derived from qualified patents and earned by a taxpayer are exempt from taxation. The Tax Exemption for Patent-derived Income defines qualified patents to include only utility patents and plant patents. The total amount of exemptions claimed by a taxpayer in a taxable year may not exceed $5 million. The exemption provides that a taxpayer may not claim an exemption for income derived from a particular patent for more than 10 taxable years. The exemption percentage begins at 50 percent of income derived from a qualified patent for each of the first five taxable years and decreases over the next five taxable years to 10 percent in the 10th taxable year.

Get expert help navigating permits and approvals

Knowledgeable staff helps new businesses identify and secure the permits needed for their project. Staff will schedule pre-application meetings between businesses and the appropriate regulatory agencies to help streamline the permitting process. Local permit fees may be waived as a part of an overall incentive package.

Revitalize vacant properties

An incentive for investment in the redevelopment of vacant and underutilized 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. Any credit award over $20 million must include a requirement that a portion of the credit be repaid by the company or developer; however, if the investment is at least $100 million, the IEDC may exclude a repayment provision.

Encourage innovation & R&D

The state of Indiana offers two tax incentives targeted at encouraging investments in research and development. Taxpayers may receive a credit against their Indiana state income tax liability calculated as a percentage of qualified research expenses. In addition, taxpayers may be refunded sales tax paid on purchases of qualified research and development equipment. The Indiana Department of Revenue oversees these incentive programs.

Employee training support

Assistance to businesses to support training and upgrading skills of employees required to support new capital investment. 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 this fund must lead to post-secondary credentials, a nationally recognized industry credential, or specialized company training for both new hires and existing workers, and an increase in wages for existing employees.

Reduce taxes on equipment and property improvements

Tax abatements are currently available for both manufacturing equipment (5 or 10 years), for improvements to real estate (3, 6, or 10 years), and information technology and logistical equipment. A recent change in the law allows for a community to offer twenty-year tax abatement on personal property for machinery and equipment.

Use future tax revenue to fund your project

New property taxes generated from new construction can be leveraged by the issuance of TIF bonds to incentivize the project.

Free office space while you get started

Temporary office space may be made available at no charge in the Muncie Innovation Connector, the community’s modern, high-tech business incubator.

Incentive for startup investments

Improves access to capital for fast growing Indiana companies by providing individual and corporate investors an additional incentive to invest in early-stage firms and qualified investment funds. Investors who provide qualified debt or equity capital to qualified Indiana businesses or qualified investment funds may receive a credit against their Indiana tax liability.