This past week, Governor Eric J. Holcomb signed an economic development bill into law that could help growing businesses qualify for incentives from the Indiana Economic Development Corporation (IEDC). Let’s dive in:
These laws help broaden the overall market of businesses that can receive incentives by allowing tax credits specifically for companies who may not have a physical location in Indiana and for film and media. Further, the laws add veteran-owned businesses to the list of those that can qualify for an enhanced Venture Capital Investment Tax Credit.
Senate Bill 361, Economic Development, also includes the following changes:
- Establishes a Workforce Retention and Recruitment Program and Fund for the purposes of recruiting and retaining individuals that can fulfill current and future workforce needs
- Changes the criteria for receiving the Headquarters Relocation Tax Credit by removing the requirement for a minimum number of employees in Indiana
- Establishes an Innovation Development District Program and Fund to be administered by the IEDC to attract large-scale projects and developments
- Provides the IEDC with latitude to transfer funds between certain tax credit accounts with a limit of $300 million
The 5 Es and READI
This legislative session and new law come after Governor Holcomb and Secretary of Commerce Bradley B. Chambers announced (in January) the fifth consecutive record-breaking year for economic development in Indiana. Also preceding the bill are Sec. Chambers’ “5 Es” plan and the largest investment in state history, which both rolled out last December.
Sec. Chambers’ “5 Es” plan outlines a future-focused vision to support business growth, talent attraction and retention in Indiana centered around the next generation. The Es include: Environment, Economy of the Future, Entrepreneurship, Energy transition and showcasing Indiana’s story through External Engagement.
The IEDC board of directors and Governor Holcomb also awarded $500 million to the Indiana Regional Economic Acceleration and Development Initiative (READI) project, supporting 17 regions and representing all 92 Indiana counties. READI is the largest investment in state history to support the quality of life across the state.
Growth in Indiana
Running alongside both of these items, Senate Bill 361 is focused on keeping Indiana jobs and looks to bring in large-scale projects that can leave a lasting impact on the community.
Senate Bill 361 affirms that Governor Holcomb is aligned with Sec. Chambers’ plans to reskill the workforce, aid workforce retention and allocate more funds to economic development. As the nature of businesses changes over time, Indiana is adjusting legislature and incentives along with it.
Take the Next Step
Sikich’s site selection & business incentives practice can determine if you may be able to take advantage of these changes or qualify for other incentives. Any businesses adding jobs or making a capital investment in land, building or equipment may be eligible. Contact us if you have any questions, and we’ll be in touch.