Local Business Incentives
 
Radius Indiana and local economic development organizations work directly with businesses to provide information about local incentives.

Regional Impact Fund


Businesses in the Radius Indiana region benefit from the Regional Impact Fund (RIF), which supports area growth and expansion efforts. The RIF is a sub-organization of Radius Indiana with a sole purpose of making investments in public and private organizations that advance regional economic development strategies. The RIF makes such investments in the form of grants, loans, equity investments, or other such vehicles deemed to be in the best interests of Southern Indiana. The RIF gives high priority to projects that include job creation, site development and expansion. So far in 2017, the RIF has committed more than $1 million to area businesses.

Tax Abatement

Tax abatement is offered by local government in south central Indiana to attract private investment and job creation.

Click here to link to our partner Hoosier Energy's tax abatement estimator.

It exempts from property tax all or part of the new assessed value or the increased assessed value of a new investment.

The exemption is for between 1 and 10 years.

  • Only in year 1 is the total amount of the new assessed value exempt from property tax.

  • In each succeeding year, the taxable share (of the portion that was previously exempted from tax) increases.

  • In most cases, tax abatement reduces the owner’s property tax bill by about 50 percent over the full abatement period.


Tax abatement can be granted on:

  • Real property

  • Personal property

  • New construction (only to the increase in assessed value attributed to the new construction)

  • Property rehabilitation (only to the increase in assessed value attributed to the rehabilitation)

  • Any new or used manufacturing equipment that has not previously been taxed in Indiana.

  • Personal property such as laboratory equipment and computers used in experimental research and development laboratories.

 

Business Incentives

Business incentives help make Southern Indiana an enticing place for your business to locate. Incentives include state tax credits and specialized local opportunities. Our regional and local economic development professionals will guide you through the possibilities and make sure your business receives every incentive it needs.

Federal Tax Credits

New Market Tax Credit

Numerous communities in the Radius region are eligible for use of the NMTC, which can contribute more than 20% of the project cost for projects greater than $7 million. Click here for a map of NMTC communities. 


State Tax Credits 

 
EDGE Tax Credit

  • Refundable credit

  • Calculated as a percentage of the expected increase in tax withholdings generated from new jobs created

  • Phased in annually for up to 10 years, based on employment ramp-up outlined by the business
  • Used in the Radius region in 2017


HBI Tax Credit

  • Non-refundable credit

  • Calculated as a percentage of eligible capital investment to support the project

  • Phased in annually over 2 full calendar years from the project start

  • May carry forward up to 9 years


Industrial Recovery Tax Credit

  • For companies investing in vacant or underutilized buildings designated as industrial recovery sites (buildings that require significant rehabilitation or remodeling)

  • Calculated as a percentage of qualified rehabilitation expenses
     
  • Used in the Radius region in 2017


Headquarters Relocation Tax Credit

  • For a business relocating its corporate headquarters to Indiana

  • Credit of up to 50% of the cost incurred to relocate the headquarters

  • The company must have global annual revenue of at least $100 million and employ at least 75 Indiana residents


Venture Capital Investment Tax Credit (VCI) 

  • Non-refundable

  • For qualified applicants who invest in qualified Indiana businesses

  • Credit equal to $1 million or 20% of the qualified investment, whichever is less


Research and Development Tax Credit

  • Income tax credit of 15% of qualified research expenses on the first $1 million of investment

  • Credit eligibility is based on the increase in the company’s R&D expenditures in Indiana over the prior 3 years: Year 1 research expenses must have been at least half of the amount of year 3 (current year) research expenses

  • May be carried forward 10 years

  • No carry back

  • Non-refundable

  • Program operates under the Indiana Department of Revenue

  • Uses the Internal Revenue Code definition of “qualified research expense” (which includes the cost of wages and supplies)


Patent Income Exemption

  • Available only to companies with 500 or fewer employees

  • Exemption from certain income derived from qualified utility and plant patents

  • 10 years of exemptions

  • Exemption may not exceed $5 million per year

Latest News
BEDFORD, Ind. (Dec. 7, 2017) - Radius Indiana announced today that registration is now open for its second annual regional economic development conference for community leaders coming to the French Lick Resort.
BEDFORD, Ind. (Oct. 23, 2017) Radius Indiana announced today its support for the Midstate Corridor, which is planned as an interstate-level route connecting U.S. Highway 231 in southern Dubois County to a point along I-69 in the north.
BEDFORD, Ind. (Oct. 19, 2017) — Radius Indiana economic development leaders took information and insights about their southern Indiana region to Indianapolis for a day as hosts of an educational session for site selectors from six companies. The October session is part of Radius’s 2017 outreach program to raise awareness about the business strengths and opportunities in the eight-county region.
SEE MORE
Our Latest Blog
Jan. 13, 2017
Crane Army Ammunition Activity is the stalwart at Naval Support Activity Crane. Long before the creation of Radius Indiana, the economic development partnership working to expand, retain and attract business in southern Indiana, Crane was providing jobs and growing the economy in our region.
 
By Matt Craig, Radius Indiana director of Crane Community Support
SEE MORE
CONTACT US AT:
1504 I Street, Bedford, Indiana 47421
(812) 277-9778  Fax: (812) 277-9788

© Copyright 2016 | Radius Indiana . All rights reserved