2022 was an unprecedented year for economic development in Indiana as the state landed $22.2 billion dollars of new business investment in all areas of the state. Businesses flocked to Indiana because of our top-tier workforce, academic institutions, and business environment. At the Indiana Economic Development Corporation (IEDC), we are aiming higher, running faster, and focusing on quality over quantity. The IEDC team is looking forward to breaking more records during 2023.

The successes of 2022 would not have been possible without the assistance of the Indiana General Assembly (IGA). During the IGA’s 2022 session, they authorized the creation of new economic development tools while also modernizing existing ones. The results of the 2022 session allow the IEDC to truly meet the demands of a rapidly changing economy.

Perhaps the most critical tool that the IGA added to our toolbox is the Innovation Development District (IDD). IDDs work by leveraging state and local resources to help a community land transformative projects at a pace that businesses demand. The first IDD was deployed in Boone Country, resulting in a $2.1 billion dollar investment by Eli Lilly.

The IGA also entrusted the IEDC with a $300 million Business Promotion and Innovation augmentation. This augmentation played an essential role in attracting businesses to Indiana; while also funding critical IEDC programs such as entrepreneurship, marketing, and population growth efforts.

To modernize our toolbox and help the IEDC stay on the cutting edge of economic development, the General Assembly added additional flexibility to our current programs via a $300 million dollar credit cap. A credit cap allows the IEDC to allocate resources efficiently and respond to the needs of businesses with our most utilized tools. 

Governor Holcomb’s Next Level Agenda highlights economic development as one of five major priorities for the state, supporting the IEDC’s work to build on last year’s $22 billion in committed capital investment and prepare for our future

 

Over the next decade, there is an estimated $2 trillion dollars of domestic business expansions and onshoring by companies and industries of the future. This fact has sparked a competition amongst many states in the US, and economic development agencies are now working to create tools that can be deployed at a rapid pace.

Governor Holcomb’s Next Level Agenda provides the IEDC with the resources required to be competitive in the current market. His budget proposes a $300 million deal closing fund to win transformational projects that are beneficial for all Hoosiers. The budget sustains our tax credit flexibility and increases funding for Manufacturing Readiness Grants that support Indiana’s economic backbone, traditional manufacturing. Further, a site acquisition fund is created so that Indiana can have strategic project ready site, an initiative that many state are already undertaking.

These new tools allow Indiana to be competitive in the economic development battle. Speed is the new incentive for prospective businesses, and Indiana is creating the economic toolbox of the future. With the support of Governor Holcomb and the IGA, Indiana will continue to be a leader in economic development and create a sustainable model that is admired across the country.