21st Century Research and Technology Fund
Created by the Indiana General Assembly in 1999 and brought under the leadership of the Indiana Economic Development Corporation (IEDC) in 2005, Indiana’s 21st Century Research and Technology Fund (21 Fund) focuses on entrepreneurial ventures that have demonstrated a market potential for commercialization of innovative technologies.
The 21 Fund provides financial support to highly innovative Indiana-based companies, thereby helping these firms make the transitional leap from general research and development to product development while also creating high-wage, high-skill, high-tech Indiana jobs and diversifying the state’s economy.
Small Business Innovation Research Initiative (SBIR/STTR)
The Small Business Innovation Research (SBIR) — along with its sister program, the Small Business Technology Transfer program (STTR) — are highly competitive and encourage small businesses to explore their technological potential. SBIR/STTR funding is available from 11 participating agencies throughout the United States and focuses on various technological areas.
The IEDC SBIR office was formed to help Indiana businesses compete for and win federal funding. Additionally, the IEDC SBIR Initiative is committed to assisting Indiana businesses in the commercialization of their prototypes and understands the impact that these companies can have on the economy.
Industrial Development Grant Fund (IDGF)
The IEDC provides financial support for infrastructure improvements in conjunction with projects creating jobs and generating capital investment in Indiana.
This grant provides money to local governments for off-site infrastructure projects associated with an expansion of an existing Indiana company or the location of a new facility in Indiana. State funding through the IDGF program must be matched by a combination of local government and company financial support.
IEDC can provide a loan guaranty to a lender for the benefit of a high-growth/high-skilled company, manufacturer, rural development project, value-added agricultural enterprise or another type of business that creates or retains a significant number of Hoosier jobs. IEDC recommends that you contact your lender to determine if this program is right for you.
IEDC's Guaranty Program is flexible and can be tailored to meet the needs of many Indiana businesses. The guaranty is often used creatively by the lender in conjunction with other funding sources and enhancement programs. All Loan Guaranty requests are approved by the IEDC Board.
For rural development and value-added agricultural projects, the guaranty is $300,000. The guaranty for high-growth/high-skilled companies and manufacturing projects may be up to a maximum of 75%-90% of the principal balance of the loan, depending on the collateral.
IEDC has participated in the funding of more than 83 loans PROVIDING OVER $84 MILLION IN GUARANTEED LOANS to Indiana businesses.
The Agricultural and Rural Development Project Guaranty Fund has also been used to guarantee seed capital for microloan programs, assisting rural companies and helping communities establish strong microloan programs.
Indiana Economic Development Corporation
One North Capitol, Suite 900
Indianapolis, IN 46204
(317) 233-9138 Phone
Office Hours: Monday - Friday
8:00 am to 5:00 pm
Matt Tuohy, Program Manager, (317) 233-9138
The Certified Technology Parks program supports the attraction and growth of high-technology business in Indiana and promotes technology transfer opportunities. Designation as a Certified Tech Park allows for the local recapture of certain state and local tax revenue which can be invested in the development of the park.
Regional Economic Development Partnership Programs
In order to spur further regional economic development initiatives, this program was created to encourage communities to think, plan and act regionally, and to provide additional resource support for regional initiatives. The objective is to build on the work already done to define regional economies, develop regional growth strategies, accelerate effective regional economic development.
The Indiana Economic Development Corporation's regulatory ombudsman assists in the process of obtaining the permits and approvals necessary for a business operation. The ombudsman serves as a liaison between companies, communities, local economic development organizations and regulatory agencies.
The Shovel Ready Program
Perry County is a proud participant in the Shovel Ready Program, a new state program created to help communities certify sites as "ready for development." Shovel Ready is designed to ultimately help companies locate and develop a property site quickly. This provides a competitive advantage and gets jobs here faster.
The Shovel Ready Program lowers the cost of site development, improves efficiency of state permitting and enhances the marketability of the site. Because site information is available before development, potential risks of investing and improving new land are reduced for businesses. The Goals of the Shovel Ready Program are to:
• Certify sites to expedite the location and permitting processes for business development
• Help local communities identify and prepare sites for economic development
• Identify and fast track the state, federal and local permits necessary for a specific site
(dependent on the end user)
The minimum standards listed below must be met for a site to be considered for certification:
• Executive-level local government official support. (Elected official or executive is defined as a Mayor, County Commissioner or Town Council President).
• Site Ownership / Control:
◦ Clear title or development option
◦ 50-year title search
◦ Letter from property owner/option holder stating that site is for sale/lease
◦ ALTA Map
◦ Site map showing lot layout
◦ USGS Topographical Map
◦ Aerial Map
• Phase I Environmental Site Assessment performed by a certified professional within the prior six months (Phase I Report and supporting information based on ASTM standards E 1527-00 or E 1527-05.) Remediated sites provide documentation of liability protection.
• Wetland delineation demonstrating that impacts to waters of the state will be avoided or mitigation plan approved by the Indiana Department of Environmental Management.
• Water and wastewater infrastructure to property line or demonstrate the ability to construct and pay for the infrastructure up to property line. Capacity clearly defined.
• Transportation infrastructure to property line or demonstrate the ability to construct and pay for the infrastructure up to property line.
• Electric infrastructure to property line or demonstrate the ability to construct and pay for the infrastructure up to property line. Capacity clearly identified.
• Natural gas infrastructure to property line or demonstrate the ability to pay for the infrastructure up to the property line. Capacity clearly identified.
• High speed communications infrastructure to property line or demonstrate the ability to construct and pay for infrastructure up to property line. Capacity clearly identified.
The Economic Development for a Growing Economy (EDGE) is a refundable tax credit program that rewards companies creating jobs and contributing to the growth of Indiana’s economy. EDGE credits are calculated as a percentage of payroll tax withholding for net new Indiana jobs. EDGE credits may be awarded for a period of up to 10 years.
Headquarters Relocation Tax Credit
When a business relocates its corporate headquarters (defined as the location of the principal office of the principal executives) to Indiana, it is entitled to a credit against its state tax liability equal to half of the costs incurred in relocating the headquarters. A company must have a worldwide annual revenue of at least $100 million to qualify.
Hoosier Business Investment Tax Credit (HBITC)
This program encourages capital investment in Indiana by providing a credit against a company’s Indiana tax liability. The credit amount is based on a company’s qualified capital investment with the final credit amount determined by the Indiana Economic Development Corporation, based on an analysis of the economic benefits of the proposed investment.
Calculation of Credit
The IEDC certifies the amount of the qualified investment that is eligible for credit and the amount directly related toexpanding 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.
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.
Industrial Recovery Tax Credit
The Industrial Recovery tax credit provides an incentive for companies to invest in facilities requiring significant rehabilitation or remodeling expense. After a building has been designated as an industrial recovery site, companies may be eligible for a tax credit calculated as a percentage of qualified rehabilitation expense.
Calculation of Credit
A credit in the amount of the qualified investment multiplied by the following applicable percentage:
• If a plant was in service between 20 and 29 years ago the applicable percentage is 15 percent
• If a plant was in service between 30 and 39 years ago the applicable percentage is 20 percent
• If a plant was in service at least 40 years ago, the applicable percentage is 25 percent
The tax credit may be carried over to the immediately following taxable years if the credit exceeds the taxpayer’s state tax liability.
The credit must be applied against the following in the order listed:
• Adjusted gross income tax liability
• Insurance premiums tax liability
This credit is open to occupants of or investors in industrial recovery sites consisting of a building or complex of buildings in service at least 20 years, with at least 250,000 interior square feet that has been at least 75 percent vacant for two years or more.
The Skills Enhancement Fund (SEF) provides financial assistance to businesses committed to training their workforce. Trainees must be Indiana residents. SEF reimburses eligible training expenses over a two-year term. Companies may reapply for additional SEF funds after their initial two-year term. IEDC typically does not provide reimbursement for training that is required by law.
Calculation of Training Award
Companies can receive reimbursement—up to $200,000 —for retraining existing workers. Supplemental grant awards may be available for training new employees.
Businesses receiving SEF training assistance must commit to continuing their operations at the location where the SEF training assistance is provided for at least five years after the training grant is completed and closed. If a business fails to meet the five-year commitment, it must repay the full amount of the SEF assistance received. Indiana companies receiving SEF funds must be in good standing with state regulatory agencies.
• Quality of jobs, including skill and wage levels
• Quality of the training program and the company’s past commitment to training
• Number of workers to be trained
• Capital dollar investment being made by the company
• Importance of the project to Indiana’s strategic future
• Financial strength of the company
• Economic need of the affected community
Eligible Training Activities
• Basic Skills: Traditional basic skills (reading, writing and math).
• Transferable Skills: Skills that enhance an employee’s general knowledge, employability and flexibility in the workplace (welding, computer skills, blueprint reading, problem solving, team participation, etc.).
• Company-Specific Skills: Skills that are unique to an individual company’s workplace, equipment and/or capita investment.
• Quality-Assurance Skills: Skills that are intended to increase the quality of the company’s product (Statistical Process Control [SPC], Total Quality Management [TQM], ISO and QS).
• Manufacturing Companies
• Distribution Centers
• Regional headquarters if the company demonstrates that a significant portion of its business involves transactions with out-of-state entities.
• Indiana’s SEF program offers financial assistance in the form of a grant reimbursing eligible training costs.
• Training expenses eligible for reimbursement include instruction, travel and material and supply costs.
• Travel costs are limited to 30 percent of the total grant.
• The maximum amount awarded through the SEF program typically does not exceed 50% of a company's training budget.
State incentive programs are administered by the Indiana Economic Development Corporation.
There are over 30 different types of incentives that are available to new and existing businesses in the state. In addition, there are close to 15 other funds and grants that can be of assistance to a company locating in Indiana.
Each local governmental entity with taxing authority also offers tax abatement incentives for new and expansion of existing businesses.
The individual project’s new job creation and value of new real property and equipment are important factors.
Various other programs are used including Tax Increment Financing (TIF) and participation with the state on their infrastructure program.