TAXES AND INCENTIVES
Bowman Family Holdings and our public-private partners share a strong interest in supporting industrial, agribusiness and land development projects in the Megasite.
Incentives and tax breaks include:
- State refundable tax credits for payroll withholdings.
- State reimbursement for up to 50% of eligible training costs.
- State corporate tax credits based on capital investments.
- No state tax for inventory, gross receipts, sales, and inheritance.
- Personal and corporate tax rates are being reduced.
- Indiana is a right-to-work state with the 2nd best Worker’s Compensation costs in the USA.
- Indiana has Triple-A credit ratings from Standard & Poor’s, Fitch, and Moody’s.
- Indiana is enjoying faster job growth than the USA average.
- Indiana is ranked #1 for “Best Regulatory Environment” by the Pacific Research Institute.
- Indiana is ranked #1 for “Best Infrastructure” and “Lowest Cost of Doing Business” (CNBC).
Additional information can be obtained on programs below and other incentives and programs by contacting the Pike County Economic Development Corporation. As active Board members of the Pike County EDC, we welcome an opportunity to assist our public and private partners to maximize your businesses incentive possibilities.
Tax abatement is offered by the local governmental taxing unit on real property and equipment. Real property can qualify for a three year, seven year or ten year abatement on new buildings and improvements or increases in assessed value on remodeled or renovated structures. Land does not qualify. Manufacturing equipment (new to the State of Indiana) qualifies for a deduction from assessed value over a ten year period. Equipment not used in direct production, such as office equipment, does not qualify. New real estate investments options can have abatement terms from one to a maximum of ten years.
Business Personal Property Taxes
Abatement for used equipment - local governing body may now grant tax abatement for property that was previously used in Indiana. The equipment must be acquired in an arm’s length transaction with an unaffiliated party.
Tax Incremental Financing (TIF)
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.
There are more than 30 different types of incentives that are available to new and existing businesses in the state of Indiana. A few are listed below. In addition, there are approximately 15 other grants and funds that may be of assistance to a company locating in Indiana. We will work dilligently to be sure your team is aware of all assistance your company may be qualified to receive.
- 21st Century Research and Technology Fund - Elevate Ventures
The IEDC SBIR office was formed for just that mission—to help Indiana businesses compete for and win federal funding. Additionally, the IEDC SBIR Initiative is committed to assisting Indiana businesses in the commercialization of their prototypes and understands the impact that these companies can have on the economy. This, coupled with the matching program of the 21st Century fund, will provide Indiana companies with the fuel needed to excel in the SBIR/STTR programs.
- 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.
- 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. 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.
- Click: Indiana Incentives to view additional incentives offered by the State of Indiana.
Corporate Income Tax
Corporate Income Tax
The Corporate Adjusted Gross Income Tax is calculated at a flat 8.5 percent of adjusted gross income. Adjusted gross income is a company’s federal adjusted gross income with certain adjustments. This method of determination simplifies tax calculations for corporations and does not apply to S corporations and not-for-profit organizations.
Indiana is phasing in the single-sales factor for apportioning corporate income tax. Indiana had determined its share of an interstate or international corporation’s taxable income by weighing the Indiana portion of a company’s property and the proportion of its employees in Indiana. The single-sales factor will calculate the Indiana portion based solely on the portion of a company’s sales in Indiana.
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