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Tax relief designed to help new and expanding businesses upgrade real property or acquire new equipment by phasing in the increase in taxes generated by the new investment. Businesses may be eligible for sliding abatement on property taxes for up to five years, and for a sliding abatement on property taxes for three to 10 years based on a project scoring matrix.
Tax Incremental Financing District Funds
Within defined redevelopment areas there may be funds made available for projects that forward stated redevelopment objectives and significantly leverage public funds to private dollars. Businesses and developers may fill out an application to request TIF dollars for their projects. For ease of use, this application is aligned with the existing state-level application for incentives.
Urban Enterprise Zone
Tax credits may be available to qualified businesses and eligible employees located within this 3.79 square-mile area targeted for physical revitalization, job creation and improvements in social and economic conditions. Lenders supporting a Zone business may apply for tax credits on loans that support expansion and growth.
Industrial Revenue Bonds
Industrial Revenue Bonds (IRBs) or Private Activity bonds, are tax-exempt bonds issued by government entities, with the proceeds loaned to private companies. The interest on the bonds is typically tax-exempt, making them attractive to investors and resulting in lower financing costs to the company.
Industrial Revolving Loans
The Industrial Revolving Loan Fund (IRF) provides low-interest gap financing to help companies in South Bend expand their operations and facilities, and to assist start-up companies in the area.
Abatements are for new buildings, new manufacturing or research equipment and residentially distressed areas. Phase-in amounts are predetermined by Indiana Statute 6-1.1-12.1 and can be up to 10 years in length.
Northwest TIF and South Side TIF
Abatement schedules are predetermined by Indiana Statute 6-1.1-12.1.
Real Property: 3 years
Personal Property: 5 years
Real property only; may be from 1-7 years in addition to base abatement.
Total Abatements possible is 4-10 years.
Development Area Maps
Community Revitalization Enhancement District Tax Credit (CReED)
The Community Revitalization Enhancement District (CReED) Tax Credit entitles a taxpayer to a credit against the taxpayer's state and local tax liability for qualified investments made within a CReED designated under Ind. Code 36-7-13. The credit is established by Ind. Code 6-3.1-19.
Economic Development for a Growing Economy (EDGE)
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.
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.
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.
Industrial Development Grant Fund
The Industrial Grant Fund (IDGF) 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.
Industrial Recovery Tax Credit
The Industrial Recovery Tax Credit, also known as DINO for older buildings it benefits, provides an incentive for companies to invest in former industrial facilities requiring significant rehabilitation or remodeling expenses. The credit is established by Ind. Code 6-3.1-11.
Patent Income Tax Exemption
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.
R&D Tax Credit
The Research and Development (R&D) Tax Credit provides an incentive for business investment in Indiana by providing a credit against state tax liability for qualified company research expenses. The R&D tax credit (also known as the Research Expense tax credit) is based on the increase in Indiana R&D over the prior three-year base. The R&D tax credit is authorized by IC 6-3.1-4-1 and is administered by the Indiana Department of Revenue.
Skills Enhancement Fund (SEF)
The Skills Enhancement Fund (SEF) provides 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.
Venture Capital Investment Tax Credit (VCI)
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. The Venture Capital Investment Tax Credit is established by I.C. 6-3.1-24.