As programs and incentives change frequently, this is meant to serve as a reference section to raise awareness of the types of incentives and loans available in Indianapolis. Please be aware that some of the programs listed pertain more to bodies of government than to individual businesses.

• Must be a small business
• Located in Indiana
• Are a corporation, partnership, or proprietorship
• Create and/or retain jobs
• Have a net worth less than or equal to $6 million
• Have an avg. net profit less than $2 million per year for the last two years

Community Revitalization Enhancement Districts (CRED)
Provides tax credits to promote business development in economically distressed areas. To be eligible, an area must have an aggregate of at least 50,000 sq. ft. of vacant floor space, significant obstacles for redevelopment must exist, and there must be significantly fewer employees in the area than 10 years earlier. Contact local economic development office of county in question.

• Small
• Located in a HUBZone
• Owned and controlled by one or more U.S. citizens
• At least 35% of its employees reside in a HUBZone

• A qualified census tract
• A qualified "non-metropolitan county" that is not located in a metropolitan statistical area and in which the median household income is less than 80% of the non-metropolitan state median income, or that has an unemployment rate that is not less than 140% of the statewide avg. unemployment rate
• Lands within external boundaries of an Indiana reservation

• 30% non-refundable tax credit for qualified investments which expand the total Ind. wage base of a qualified employer
• A qualified employer must maintain an avg. hourly wage greater than
  150 % of Federal minimum wage ($7.725/hr. or $ 16,068/yr.)

Hoosier HQ Relocation Tax Credit
Attempts to reverse the recent trend of corporate HQ's leaving the state. To qualify, a relocating corporate HQ must have at least 250 employees and the company must generate at least $25B in annual revenues. Includes a 50% non-refundable tax credit for reasonable and necessary costs of relocation and investments in buildings, equipment, or other fixed assets located permanently in the state.

• 25% non-refundable tax credit for job/workforce skills training expenditures by individuals
• 10% non-refundable tax credit for qualified employer financial training
  programs and/or work based learning initiatives conducted in
  partnerships w/ local schools, universities, or public/private training
  organizations
• A qualified employer must maintain an avg. hourly wage greater than
  federal minimum wage
• Individuals won't be able to claim it until they file their taxes in April
  2004

Hoosier SmartZones
Provides local communities w/a tool to nurture technology-based business growth by expanding the definition of public infrastructure. Broadens the definition of a public project, which may be funded w/ TIF in a SmartZone, to include such things as Research and Development equipment and facilities, testing equip. and facilities, conferencing/teleconferencing equip. and facilities, etc. when provided in support of high technology business activities. Criteria for designation include:

• Support of a close proximity to a university or research-based institute
• Commitment and support of private business partners
• Fully developed strategic plan approved by the state

• Building public and corporate awareness of community child care needs
• Building public and private partnerships to meet the needs
• Expanding licensed child care capacity
• Increasing the number of credentialed providers
• Reducing high rates of turnover among child care professionals

• Primary working capital
• Subordinated working capital
• Long-term loans for new equipment
• First mortgages on existing properties as well as planned construction Projects
• Second mortgages
• Leveraged buy-outs
• Subordinated debt/equity combinations

• Businesses that operate or will operate in an Indiana Enterprise Zone
• Lenders who make qualified loans within an Enterprise Zone
• Employees of businesses located in an Enterprise Zone

1. Inventory Tax Abatement - a business pays no property tax on wholesale or retail resale merchandise, raw materials, supplies, work-in- process, or finished goods.
2. Gross Income Tax Exemption - a taxpaying business entity pays no gross income tax on increased receipts gained from operating in an Enterprise Zone.
3. Investment Cost Credit - an individual purchasing an ownership interest in an Enterprise Zone business may be eligible to receive a credit of up to 30% of the purchase price against his or her state tax liability.
4. Loan Interest Credit - an individual or business that pays taxes in Indiana is entitled to a 5% tax credit on interest income from a loan that benefits businesses or residents of an Enterprise Zone. To qualify, the loan must directly benefit an Enterprise Zone business, increase the assessed value of real property in an Enterprise Zone, or be used to rehabilitate, repair, or improve a residence in a zone.
5. Employment Expense Credit - a business may apply a credit to its gross income tax or adjusted gross income tax liability for wages paid to qualified employees. A qualified employee is one who lives in the Enterprise Zone, works 50% of his/her time in the Enterprise Zone, and has at least 90% of his/her services directly related to the employer's facility in the Enterprise Zone.
6. Employee Tax Deduction - a qualified employee's wages, up to $7500, are exempt from Indiana individual income tax.

• Removal of hazardous chemicals
• Conducting a Phase I and Phase II site assessment
• Removal of underground storage tanks (UST's)

Industrial Revenue Bonds (IRB's) and Volume Cap Program
The amount of tax exempt financing available for certain types of private companies or developers in a calendar year is referred to as the Volume Cap program. Eligibility is determined by federal law. A company has to obtain an award of Volume Cap before it can have tax-exempt bonds issued for its project. The Indiana Development Finance Authority (IDFA) allocates Indiana's Volume Cap.

• Must be greater than or equal to 300, 000, sq. ft.
• 50% of the complex must be at least 20 yrs. old
• At least 75% of the floor space must have been vacant for at least 2 yrs.