Hoosier Business Investment Tax Credit


Description

Indiana has created a strong business climate due to a flat state corporate tax rates on adjusted gross income, workforce training grants and various forms of business tax incentives.

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.

Calculation of Credit

The IEDC certifies the amount of the qualified investment that is eligible for credit and the amount directly related to expanding the workforce in Indiana.  A company’s credit award may be up to 10 percent of the qualified capital investment and may be carried forward for nine years. The IEDC determines the applicable credit percentage and carry forward term on a case-by-case basis.

Eligibility

IEDC may enter into an agreement with an applicant if the following conditions exist:           

  • The applicant’s project will raise the total earnings of 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 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 raising the total earnings of employees 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.
  • The average wage that will be paid by the taxpayer to its employees (excluding highly-compensated employees) at the location after the credit is given will be at least equal to 150 percent of the hourly minimum wage or its equivalent.
  • A taxpayer receiving the tax credit shall maintain operations at the project location for at least 10 years during the term that the tax credit is available.

 

Project Information Management System

 

Fact Sheet

Hoosier Business Investment Tax Credit