Tax abatement is a tool used by local government to attract private investment and job creation by exempting all or a portion of the new or increased assessed value resulting from new investment from the property tax roll. Tax abatement can be granted on either real or personal property. Real property abatements can be granted for both new construction and rehabilitation, with the abatement limited to the increase in assessed value attributable to the new construction or rehabilitation. Personal property tax abatements can be granted to any manufacturing equipment (new or used) that has not previously been taxed in Indiana. Personal property such as laboratory equipment and computers used in experimental research and development laboratories is also eligible for tax abatement.
Tax abatement can be granted for between 1 to 10 years. Only in year 1 is the total amount of new assessed value exempt from paying property tax. In each succeeding year, the share of the previously exempted assessed value that is taxable increases. In most cases the granting of tax abatement will reduce the amount of property taxes paid by the owner by approximately 50 percent over the full abatement period.
The Economic Development for a Growing Economy (EDGE) is a refundable tax credit program that rewards companies 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.
When a business relocates its corporate headquarters (defined as the location of the principal office of the principal 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 a worldwide annual revenue of at least $100 million to qualify.
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.
The Industrial Recovery Site tax credit provides an incentive for companies to invest in facilities requiring significant rehabilitation or remodeling expense. After a building has been designated as an industrial recovery site, companies may be eligible for a tax credit calculated as a percentage of qualified rehabilitation expense.
The Venture Capital Investment Tax Credit was established to improve access to capital to 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 income tax liability.
The Media Production Expenditure Tax Credit (MPETC) was established to further grow the Indiana production industry by providing individuals and companies a refundable tax credit of up to 15 percent of the amount spent in Indiana for qualified production expenditures.
Blackford County offers a Forgivable Loan program for qualified businesses that are relocating to Blackford County. The Loan can be forgivable on a dollar-for-dollar basis when the new company utilizes and purchases goods or services from other Blackford County companies. For an example of how the Forgivable Loan Fund can work, please visit here.
The purpose of the Hartford City Revolving Loan Fund is to enable Blackford County businesses the opportunity to receive financing when conventional sources of financing are not available. The Hartford City RLF: a) encourages the development of new and current industries, b) enhances employment opportunities, c) stops “out migration” of Blackford County’s young people, and d) addresses the reluctance of local lenders to participate as the sole lender in new and innovative projects. Eligible Applicants must be a private, for-profit business. Applicants may request up to $10,000 of RLF dollars for each new job created per project. The Hartford City RLF cannot finance working capital, existing debt or non-capital equipment.
Energize-ECI Regional Revolving Loan Fund PDF
Qualifying businesses located in Blackford County have access to a Revolving Loan Fun available throughout East Central Indiana. The ECI RRLF program is funded by the USDA and is being administered by the regional Small Business Development Center. A Rural Revolving Loan Fund is a pool of public and private sector funds that recycle money as loans are repaid. Objectives of RRLF’s are to: (1) provide a dependable financing source for long-term economic development; (2) fill a credit gap for start-ups, expansions and retentions; (3) spur economic growth by making loans as affordable as possible; and (4) customize loans to the financial needs of each individual business.
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.
Loan Guaranty Program
IEDC can provide a loan guaranty to a lender for the benefit of a high-growth/high-skilled company, manufacturer, rural development project, value-added agricultural enterprise or another type of business that creates or retains a significant number of Hoosier jobs.
Capital Access Program (CAP)
The Capital Access Program (CAP) is a small business credit enhancement program that creates a specific cash reserve fund for the 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.
21st Century Research and Technology Fund
The Indiana 21st Century Research and Technology Fund was created to stimulate the process of diversifying the State's economy by developing and commercializing advanced technologies in Indiana. The Board, representing most of the academic and commercial sectors of the State, approves awards.
Industrial Development Grant Fund (IDGF)
This grant provides money 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 encourage small businesses to explore their technological potential. SBIR/STTR funding is available from 11 participating agencies throughout the United States and focuses on various technological areas.