Incentives

New Castle-Henry County can provide incentives that are competitive with other areas. These incentives are flexible and apply to a variety of industry sectors and activities. The NCHCEDC staff facilitates a wide array of expansion and relocation incentives through state and local government agencies. Our staff is experienced in navigating the tax abatement and grants processes and has established working relationships with the appropriate professionals.

Below is a listing of incentive programs available at state and local level.

Indiana Economic Development Corporation Incentives

21st Century Research and Technology Fund

The 21st Century Research and Technology Fund stimulates the process of diversifying the state’s economy by developing and commercializing advanced technologies in Indiana. The fund makes awards in two broad categories: Science and Technology Commercialization and Centers of Excellence. In addition, the Fund provides cost-share on behalf of Federal proposals submitted by Indiana-based entities. Awards are made for periods of up to two years in amounts up to $5 million.

Click here for detailed information on the 21st Century Research and Technology Fund.

Capital Access Program

The Program provides businesses with access to capital by encouraging lenders who participate in the program to make loans they may not otherwise make. The CAP-SSBCI allows lenders to consider making slightly riskier loans that might not meet conventional small business lending requirements.

Click here for detailed information on the Capital Access Program.

Economic Development for a Growing Economy (EDGE)

The EDGE program offers assistance through tax credits applied against any Indiana Corporate income tax liability incurred as a result of the recipient’s project. Credits may be awarded for a period not to exceed ten years. EDGE was created to assist those companies which are creating new jobs by locating or expanding in Indiana.

Click here for detailed information on the EDGE program.

Hoosier Business Investment Tax Credit (HBITC)

Thirty percent credit against the applicant’s state tax liability based upon capital investments that lead to the creation of new jobs or increase the level of wages in Indiana. The EDGE (Economic Development for a Growing Economy) Board must approve the investment for the credit to be claimed. Qualified investments include the purchase of equipment, infrastructure, new computers or related equipment; costs associated with retooling machinery; and costs associated with construction of buildings for use in the computer, software, biological sciences or telecommunications industries.

Click here for detailed information on the Hoosier Business Investment Tax Credit.

Hoosier Headquarters Relocation Tax Credit

A business that relocates its corporate headquarters (defined as the location of the principal office of the principal executive officers) to a location in Indiana is entitled to a credit against its state tax liability equal to 50% of the costs incurred in relocating the headquarters. This program does not have a minimum job requirement. However, a company must have worldwide annual revenue of at least $100 million to qualify. Effective 01/01/2007.

Click here for detailed information on the Hoosier Headquarters Relocation Tax Credit.

Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit

This program provides a credit up to 15 percent, as determined by IEDC, of the qualified investment for the manufacture of alternative fuel vehicles. An applicant must compensate its employees at least 150 percent of the state’s hourly minimum wage and agree to maintain operations for at least 10 years. The Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit is established by IC 6-3.1-31.9.

Click here for detailed information on the Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit.

 

Industrial Development Bonds (IDB)

Industrial Development Bonds or Private Activity Bonds are municipal bonds issued for the benefit of private companies. Since municipal bonds are tax exempt, they are offered at a lower interest rate. The bonds may be issued through the Indiana Development Finance Authority (IDFA) or through local economic development commissions and are available to Indiana manufacturing companies.

Click here for detailed information on the Industrial Development Bonds.

Industrial Development Grant Funds (IDGF)

This program is designed to assist communities in providing necessary public infrastructure capable of attracting and supporting new business investment. Grants and loans are awarded to communities on behalf of a new or expanding industry.

Click here for detailed information on the Industrial Development Grant Funds.

Industrial Recovery Tax Credit (Dinosaur Building)

This 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.

Click here for detailed information on the Industrial Recovery Tax Credit (Dinosaur Building).

Patent Income Exemption

Taxpayers are exempt from certain income derived from qualified utility and plant patents. Qualified taxpayers are eligible for an exemption of 50 percent of patent income for each of the first five years. The exemption percentage decreases over the next five years to 10 percent in the tenth year.

The total amount of exemptions claimed by a taxpayer may not exceed $5 million per year. The Patent Income Exemptionis available only to companies with 500 or fewer employees.

Click here for detailed information on the Patent Income Exemption.

Research and Development Sales Tax Exemption

For transactions occurring after June 30, 2005, 50 percent of the sales tax is imposed on the purchase of all qualified research and development equipment. For transactions beginning on or after July 01, 2007, sales tax on purchases of qualified research and development equipment is exempted. Taxpayers may file a claim for the refund for tax paid on retail transactions that occur on or after July 01, 2005.

Click here for detailed information on the Research and Development Sales Tax Exemption.

SBIR/STTR Matching Program

The SBIR/STTR Matching Program provides matching grants (up to a maximum amount of $100,000) to recipients of Phase 1 awards from the Small Business Innovation and Research (SBIR) and Small Business Technology Transfer (STTR) programs.

For detailed information on the SBIR/STTR Matching Program, please go to:

http://iedc.in.gov/entrepreneurship/small-business-innovation-research-initiative

Skills Enhancement Fund (SEF)

Indiana’s Skills Enhancement Fund provides financial assistance to new and expanding companies committed to training their workers. Eligible companies can receive reimbursement up to $200,000 or up to 50% of eligible training costs. The program is administered on a reimbursement basis by the Indiana Economic Development Corporation with a minimal amount of application paperwork. Indiana will also continue this commitment to training by welcoming companies back after two years to apply for more funds to retrain their employees.

Click here fordetailed information on the Skills Enhancement Fund.

Venture Capital Investment Tax Credit

The Venture Capital Investment Tax Credit program gives tax credit against a qualified taxpayer’s state tax liability. The credit is for the taxpayer who provides qualified investment capital to a qualified Indiana business. A business is certified by the Indiana Economic Development Corporation if it is paying wages at least 150 percent of Indiana per capita personal income; is headquartered in Indiana; has average annual revenues of less than $10 million in the previous two years; has at least 50 percent of its employees residing in Indiana or at least 75 percent of the company’s assets located in Indiana; is not engaged in a business involving real estate, real estate development, insurance, retail sales, oil or gas exploration or services provided by an accountant, lawyer or physician; and is focused on research and development or other technology pursuits.

Click here fordetailed information on the Venture Capital Investment Tax Credit.

 

Regulatory Ombudsman’s Program

The Indiana Economic Development Corporation’s regulatory ombudsman assists in the process of obtaining the permits and approvals necessary for a business operation. The ombudsman serves as a liaison between companies, communities, local economic development organizations and regulatory agencies.

Click here for more detailed information on the Regulatory Ombudsman’s Program.

Henry County Local Incentives

Tax Abatement

Local communities have the option to offer real and personal property tax abatement as an incentive to new and expanding businesses. Property tax abatement allows a property owner to phase in payment of property taxes over a designated period. This period may be any number of years between one and 10. The designating body determines the period.

Property tax abatement in Indiana is authorized in the form of deductions from assessed valuation. Any property owner in a locally designated Economic Revitalization Area (ERA) who makes improvements described below is eligible for property tax abatement.

Real Property Tax Abatement

With respect to real property (buildings), the deduction is a percentage of the increase in assessed valuation that results from rehabilitation or redevelopment. Improvements to existing buildings may be eligible.

Real Property Tax Abatement Deduction Period

Real property tax abatement is a declining percentage of the increase in assessed value of the improvement based on one of the following 10 time periods. The local designating body determines the time period for the abatement

Real Property Tax Abatement Deduction Period Chart.jpg Personal Property Tax Abatement Deduction Period Chart.jpg

Tax Increment Financing

The tax increment finance (“TIF”) mechanism in Indiana permits a town, city or county, through a local redevelopment commission, to designate targeted areas for redevelopment or economic development. Those areas can then be designated as “allocation areas” which triggers the TIF process. After such a designation is made, property taxes generated from new construction in the area, rather than going to the normal taxing units (e.g., schools, cities, counties), can be set aside and invested back in the area to promote development. These property tax revenues can be leveraged by the issuance of TIF bonds, the proceeds of which also can be used to promote development in the area.

Permitted Uses of TIF:

TIF revenues may be used directly to finance public infrastructure, land acquisition, site improvements, and other public improvements. Alternatively, TIF revenues may be pledged to the payment of bonds or lease rental obligations issued or incurred to finance such projects.

Property Subject to TIF:

Only taxes on real property and taxes on depreciable personal property used in industrial, manufacturing, warehousing, research and development, processing, distribution, or transportation related projects, qualify for the use of the TIF mechanism.NOTE: TIF revenues and TIF bond proceeds are public funds. Therefore, under Indiana law, the expenditure of such monies is subject to certain laws, most notably the public bidding law and the prevailing wage law. Also, the transfer of TIF-financed property to a private company is subject to certain public property disposition laws. Bonds issued by a local municipality may be used to finance infrastructure improvements and new construction areas needing growth or rehabilitation. The infrastructure pays for itself through increased tax revenues (resulting from the property valuation increases) which are pledged for repayment of the bonds.