Incentives Overview

Local Incentives

*Other incentives not listed on this page may be applicable to some projects;
applicable incentives vary based on project location and scope

Community Revitalization Enhancement District (CRED)

  • Credit against a taxpayer’s state and local tax liability for a qualified investment in that year
  • Amount of credit is the qualified investment multiplied by twenty-five percent (25%)
  • Special incentive packages may be based on recoupment of sales tax and/or state income tax amounts

Economic Development Revolving Loan Fund

  • Loans of up to $100,000 at rates as low as four percentage points below prime rate

Foreign Trade Zone

  • Imports may be admitted and held in a foreign-trade zone without paying U.S. Customs duties
  • FTZ users can pay the duty rate on component materials or merchandise produced from component material, whichever is lower
  • Customs duties are not paid on merchandise exported from a zone
  • Duties are reduced or eliminated on materials subject to defect, damage, obsolescence or scrap
  • Merchandise may be exported and returned to an FTZ without duty payment

Industrial Revenue Bonds

  • Low-interest tax-exempt bonds; Interests on the bonds is exempt from federal and state income tax

New Market Tax Credit (NMTC)

  • Taxpayers receive a Federal Tax Credit for making qualified equity investments
  • The credit totals 39% over a seven year credit allowance period
  • NMTC program may be layered with other federal tax benefits

Property Tax Abatement

  • Any property owner in a economic revitalization area who makes improvements to real property or installs new or used manufacturing equipment from out of state is eligible for property tax abatement
  • Commercial, industrial and equipment tax abatements are based upon project scope
  • Time frame varies and may be abated up to ten years

Tax Increment Financing (TIF)

  • TIF allows the city to use increased tax revenues stimulated by redevelopment or economic development to pay for the capital improvements, such as roads and utilities, within the boundary of the TIF district

State Incentives

The State of Indiana also offers many grants and incentives to qualified businesses. More detailed information can be obtained from the Indiana Economic Development Corporation web site at www.in.gov/iedc/grants.htm.