The Hoosier Business Investment (HBI) Tax Credit provides incentive to businesses to support jobs creation, capital investment and to improve the standard of living for Indiana residents. The non-refundable corporate income tax credits are calculated as a percentage of the eligible capital investment to support the project. The credit may be certified annually, based on the phase-in of eligible capital investment, over a period of two full calendar years from the commencement of the project.
To be eligible for the tax credit:
• Project will result in net new jobs that were not previously performed by employees of the applicant
• Project is economically sound and will benefit the people of Indiana by increasing opportunities for employment and strengthening the economy of Indiana
• 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
• Political subdivisions/municipalities affected by the project have offered significant incentives to the business
Eligible capital investment includes new machinery and building costs associated with the project as outlined by I.C. 6-3.1-26-8.
Each project will be evaluated on its individual merits and with a cost-benefit analysis after it has met the basic requirements as follows:
• Business commits to new capital investment in Indiana
• Business commits to the creation of full-time, permanent jobs for Indiana residents at the project location
• Project supports the purpose of the tax credit, and meets all requirements as set forth in I.C. 6-3.1-26
Upon execution of an HBI tax credit contract with IEDC, the business will be required to report for every calendar year during the term of the contract for a period of 10 years.
• Summary statistics relating to capital investment that occurred in the applicable year
• Individual employee data to support contractual employment and wage thresholds
• Detailed line-item report of eligible investment costs by invoice
The Hoosier Business Investment (HBI-L) Tax Credit for logistics investment will be effective January 1, 2014. Further details will become available.
Hoosier Business Investment Tax Credit
Hoosier Business Investment Tax Credit - Logistics