Taxes and Incentives
- Tax Increment Financing (TIF): Tax increment financing is a financial tool widely used by local governments to promote economic development and redevelopment. Local governments may consider the dedication of tax increment revenues for the purpose of public improvements for a project.
- Economic Development Income Tax (EDIT): Economic Development Income Tax (EDIT) funds may be an additional resource to be utilized to support expansion efforts or new development.
- Tax Abatement: Local governments in White County may offer a tax abatement deduction permitted by Indiana law up to ten (10) years on real and/or personal property. The deductions are a percentage of the increases in the assessed valuation of real or personal property that will result from an expansion or new development. The taxes are phased-in over the designated time period.
Your business isn’t going to thrive just anywhere. You need the right climate for success, where the pressure from taxes, investment costs and red tape are at their lowest. Indiana has the business environment you need to successfully meet your objectives, and the industry initiatives designed to stimulate growth, innovation and profits.
- Programs include tax credits to improve capital access for fast-growing Indiana companies and deductions based on new job creation and training.
- We have no gross receipts tax or inventory tax and a corporate income tax apportionment structure based solely on sales.
Indiana has a very competitive business tax structure, including a flat state corporate tax rate on adjusted gross income and no gross receipts tax or inventory tax. Indiana’s corporate income tax is decreasing from the current 7% to 4.9% by 2021. The tax rate will drop each year as the decrease is phased-in.
Indiana also offers many business tax incentives, corporate tax credits and economic development programs for companies creating jobs and raising income in Indiana, including tax credits based on job creation and capital investment, workforce training grants, and public infrastructure assistance.
- Economic Development for a Growing Economy Tax Credit: The Economic Development for a Growing Economy (EDGE) Tax Credit provides 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 10 years based upon the employment ramp-up outlined by the business. [Download Information Sheet]
- Hoosier Business Investment Tax Credit: The Hoosier Business Investment (HBI) Tax Credit provides incentive to businesses to support jobs 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. [Download Information Sheet]
- Headquarters Relocation Tax Credit: The Headquarters Relocation Tax Credit (HRTC) provides 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. [Download Information Sheet]
- R&D Tax Credit: Indiana prides itself on common-sense approaches to business tax incentives. By assisting in strengthening the knowledge base of companies, state officials ensure that Indiana remains a competitive player in the global marketplace. [Download Information Sheet]