Economic development requires common-sense business tax incentives. Indiana’s competitive tax structure includes flat state corporate tax rates on adjusted gross income, no gross receipt tax and no inventory tax.
The Economic Development for a Growing Economy (EDGE) Tax Credit provides incentive to businesses to support jobs creation, capital investment and to improve the standard of living for Indiana residents. The refundable corporate income tax credit is calculated as a percentage (not to exceed 100%) of the expected increased tax withholdings generated from new jobs creation. The credit certification is phased in annually for up to 10 years based upon the employment ramp-up outlined by the business.
Applicants interested in the EDGE credits to new job creation must demonstrate that the following conditions exist:
The applicant’s project will create new jobs that were not jobs previously performed by employees of the applicant in Indiana.
The applicant’s project is economically sound and will benefit the people of Indiana by increasing opportunities for employment in Indiana and strengthening the economy of Indiana.
The political subdivisions affected by the project have committed significant local incentives with respect to the project.
Receiving the tax credit is a major factor in the applicant’s decision to go forward with the project and not receiving the tax credit will result in the applicant not creating new jobs in Indiana.
Awarding the tax credit will result in an overall positive fiscal impact to the state, as certified by the budget agency using the best available data.
A company may not receive credit for any jobs a company relocates from one site in Indiana to another site in Indiana.
Calculation of Credits
EDGE may be awarded for up to 100 percent of the projected withholdings attributable to the company’s Indiana project. EDGE credits may be awarded for up to 10 years.
EDGE Tax Credit