Industrial Development Grant Fund (IDGF)
This grant provides capital to local governments for off-site infrastructure projects associated with an expansion of an existing Indiana company or the location of a new facility in Indiana. State funding through the IDGF program must be matched by a combination of local government and company financial support.
Small Business Innovation Research Initiative (SBIR/STTR)
The Small Business Innovation Research (SBIR) along with its sister program, the Small Business Technology Transfer program (STTR) are highly competitive and provide an opportunity for federally funded research and development. They encourage small businesses to explore and expand their technological potential. SBIR/STTR funding is available from 11 participating agencies throughout the United States and focuses on a variety of technological areas.
Skills Enhancement Fund (SEF)
The Skills Enhancement Fund (SEF) provides financial assistance to businesses committed to training their workforce. Trainees must be Indiana residents. SEF reimburses eligible training expenses over a two-year term. However, companies may reapply for additional SEF funds after their initial two-year term. IEDC typically does not provide reimbursement for training that is required by law.
Economic Development for a Growing Economy (EDGE) Tax Credit
The Economic Development for a Growing Economy (EDGE) is a refundable tax credit program rewarding companies for creating jobs and contributing to the growth of Indiana’s economy. EDGE credits are calculated as a percentage of payroll tax withholding for net new Indiana jobs. EDGE credits may be awarded for a period of up to 10 years.
Headquarters Relocation Tax Credit
When a business relocates its corporate headquarters (the location of the principal office of executives) to Indiana, it is entitled to a credit against its state tax liability equal to half of the costs incurred in relocating the headquarters. A company must have worldwide annual revenue of at least $100 million to qualify.
Hoosier Business Investment Tax Credit (HBITC)
This program encourages capital investment in Indiana by providing a credit against a company’s Indiana tax liability. The credit amount is based on a company’s qualified capital investment with the final credit amount determined by the Indiana Economic Development Corporation based on an analysis of the economic benefits of the proposed investment.
Industrial Recovery Tax Credit
The Industrial Recovery tax credit provides an incentive for companies to invest in facilities requiring significant rehabilitation or remodeling expenses. After a building has been designated as an industrial recovery site, companies may be eligible for a tax credit. This credit is calculated as a percentage of the qualified rehabilitation expense.
Venture Capital Investment Tax Credit
The Venture Capital Investment Tax Credit was established to improve access to capital for fast growing Indiana companies by providing individual and corporate investors with 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 income tax liability.
Private Activity Bonds are often called Industrial Revenue Bonds (IRBs) or Industrial Development Bonds (IDBs) and are issued by state or local governmental entities for the benefit of a private company, usually manufacturers. Interest on the bonds is generally exempt from federal income taxes for investors, which typically results in lower long-term interest rates to the borrower.
Capital Access Program (CAP)
The Capital Access Program (CAP) is a small business credit enhancement program that creates a specific cash reserve fund for a lender to use as additional collateral for loans enrolled in the Program. CAP allows lenders to consider loans that might not meet conventional lending requirements.
International Business in Indiana
Approximately 700 international companies from over 30 foreign countries have operations in Indiana, employing more than 139,000 workers and providing the opportunity for small businesses to participate in international trade. Major inventing and trading partners are Japan, the United Kingdom, Germany, France, Australia, and Taiwan
The Office of International Development has established six international offices in strategic locations throughout the world. Each office has a corresponding geographic international development specialist located in Indianapolis to facilitate communications between companies and overseas office staff. Indiana representative offices are located in: Australia, China, Europe, Japan, Taiwan, and the United Kingdom.
The Indiana Economic Development Corporation’s Regulatory Affairs Division assists in the process of obtaining the permits and approvals necessary for a business operation. The office serves as a liaison between companies, communities, local economic development organizations, and regulatory agencies.