Economic Incentives for Relocating & Expanding Businesses

The Indiana Economic Development Corporation and the local communities of Hamilton County offer a variety of economic incentives to promote corporate investment and jobs.  The tax credits, abatements, grants and exemptions include both discretionary & entitlement incentives for relocating and expanding businesses. To help a company understand what programs apply to your projects the programs are organized by the following categories:

  • Most commonly used discretionary economic incentives
  • Special circumstance incentives
  • State sales and income tax exemptions

Commonly Used

For many projects the most commonly used discretionary economic incentives include:

  • EDGE Tax Credit (state)
  • Skills Enhancement Fund for workforce training (state)
  • Property Tax Abatement (local)

Each Hamilton County community evaluates requests for tax abatement on a case-by-case basis. Key factors in qualifying for many of these programs includes average wages, number of jobs and capital investments.

Special Circumstance State Tax Credit

The State of Indiana has tax credit programs for capital investments, the relocation of a corporate headquarters or an increase in research and development expenditures. These programs include:

  • Hoosier Business Investment Tax Credit (state)
  • Headquarters Relocation Tax Credit (state)
  • R&D Tax Credit (state)

Special Circumstance Infrastructure Incentives

Depending on the need for infrastructure improvements to support the new or expanding corporate function, both state and local government have programs to create the needed infrastructure. These programs include:

  • Industrial Development Grant Fund (state)
  • Tax Increment Financing (local)

Special Circumstance Energy Incentive

Duke Energy Indiana economic development rider, No. 58, is available to non-residential customers receving service from Duke Energy Indiana under Schedule HLF or LLF with a minimum load of 1,000 KW and a maximum load of 25,000 KW demand at one deliver point.

State Sales & Income Tax Exemptions

Indiana offers a number of sales and income tax exemptions for manufacturers, research & development and motorsports. These programs include:

  • Manufacturing machinery & equipment is exempt from sales tax (state)
  • Sales tax exemption on utilities used in the production process (state)
  • Research & development equipment is exempt from sales tax (state)
  • Patent income tax exemption (state)
  • Sales tax exemption for professional motor racing vehicle (state)

Contact a member of our staff for additional information on these programs.