Miles of Unique Incentives

Let’s Build an Incentive Package

Federal / State Tax Incentives

The State of Indiana offers businesses a wide variety of tax incentives, including:

  • Mine Reclamation Tax Credit
    Transferable tax credit for development on reclaimed coal mining land, non-refundable but transferable to other taxpayers with income tax liability; aggregate value of credits may not exceed $25M over a 5-year period.

  • Statewide Industrial Development Grant Fund (IDGF)
    Utilize IDGF to finance off-site infrastructure projects; must be matched by combination of local government and company financial support.

  • Indiana’s Data Center Sales and Use Tax
    A sales and use tax exemption for qualified projects on the purchase of qualifying data center equipment and energy for up to 25 years.

  • Economic Development for a Growing Economy (EDGE)
    A refundable Indiana tax credit, phased in annually up to 10 years, based on the jobs created.

  • Investment Tax Credit, Section 48c of the Inflation Reduction Act
    Encourages investment in renewable, low-carbon energy use by reducing capital costs by up to 30% through 2032.

  • State refundable tax credits for payroll withholdings.

  • State reimbursement for up to 50% of eligible training costs.
  • State corporate tax credits based on capital investments.
  • No state tax for inventory, gross receipts, sales, and inheritance.

  • Exempt from Sales Tax
    In manufacturing, the following are exempt from the sales tax: raw materials, equipment, power, electricity, and utilities. Wholesale sales, items used directly in production, and sales made in interstate commerce are exempt; purchase of research and development equipment is exempt from the tax.

Local Tax Incentives

Pike County’s leadership is business-friendly and is able to offer companies several local incentives to organizations wishing to relocate or expand in the area.

  • Tax Abatements
    Available on real property and equipment are available for 3, 7 or 10 years on new buildings, building improvements and equipment purchases.

  • Sales Tax Exemptions
    No sales tax on raw materials, equipment and power.

  • Site Development
    Invest in site development improvements and extend any utility infrastructure to the site at no cost to the project (e.g., Industrial Revenue Bonds, upfront investment).

    Local Tax Increment Financing (TIF) for infrastructure and construction.

  • Additional incentives:

    • Local assistance in site improvement and utility extension through Industrial Revenue Bonds and other funding.
    • Discretionary grants and refundable credits
    • Revolving Loan Fund
    • Opportunity Zones
    • Local government pledges to provide new users with an ombudsperson to coordinate the local permitting process on behalf of the company

  • Training Support
    Multiple programs available at state level, including Skills Enhancement Fund (SEF) – Workforce Training Grant.

    Customized talent attraction program designed to ease talent recruitment and hiring efforts.

    Training support including design of curriculum, on-site facility, or funding for training activities to assist with ramp-up.

Tax Rates

TaxRate
Corporate Adjusted Gross Income Tax8.5% (flat rate)*
Sales and Use Tax
(In manufacturing, the following are exempt from the sales tax: raw materials, equipment, power, electricity, and utilities. Wholesale sales, items used directly in production, and sales made in interstate commerce are exempt. In addition, the purchase of research and development equipment is exempt from the tax.)		7%
Pike County Property Tax0.0799%
Personal Income Tax3.4% of Federal adjusted gross income
*The Corporate Adjusted Gross Income Tax is calculated at a flat 8.5 percent of adjusted gross income. Adjusted gross income is a company’s federal adjusted gross income with certain adjustments. This method of determination simplifies tax calculations for corporations and does not apply to S corporations and not-for-profit organizations.

Indiana’s corporate income tax has decreased from 6.5% to 4.9%. 

  • The Corporate Adjusted Gross Income Tax is calculated at a flat 8.5 percent of adjusted gross income. Adjusted gross income is a company’s federal adjusted gross income with certain adjustments.

  • Indiana has a flat state corporate tax rate on adjusted gross income and no gross receipts tax or inventory tax.

0%

Ashley P. Willis
Executive Director

Need more information? We’re ready to help.

Reach out and let us know how we can help you and your organization.