- Tax Abatement – allows a phase-in of net new property taxes on real and personal property for up to 10 years, producing savings of approximately 50%. With initial investment values we can estimate how much you could expect to benefit over the next 10 years on both property improvements and machinery/equipment.
- Tax Increment Finance (TIF) – TIF in Indiana permits a local redevelopment commission to designate targeted “allocation areas” for economic development purposes. Columbus is home to five TIF allocation areas where property taxes generated from new construction in the area can be set aside and invested back in the area to promote development. These property tax revenues can be leveraged by the issuance of TIF bonds, the proceeds of which also can be used to promote development in the area. By state law, TIF revenues may be used directly to finance public infrastructure, land acquisition, site improvements, and other public improvements. Alternatively, TIF revenues may be pledged to the payment of bonds or lease rental obligations issued or incurred to finance such projects. Only taxes on real property, and taxes on depreciable personal property used in industrial, manufacturing, warehousing, research and development, processing, distribution, or transportation related projects, qualify for the use of the TIF mechanism.
- Economic Development Income Tax (EDIT) Fund – Residents of Bartholomew County pay an individual 0.25% economic development income tax on wages. Collected EDIT dollars are shared by the local units of government within the county, and those funds can be utilized for any lawful purpose. A portion of the City of Columbus and Bartholomew County EDIT funds are traditionally set aside as an incentive pool to support exceptional economic development projects within the City and/or County.
State Incentives – Various State of Indiana incentive programs and exemptions are available, and the staff of the Greater Columbus Economic Development Corporation is well-prepared to assist existing and prospective companies in pursuit of qualifying incentive programs. Some of the more popular incentive tools are highlighted below:
- Economic Development for a Growing Economy (EDGE) Tax Credit – a refundable, performance-based credit against a company’s Indiana corporate tax liability, based upon meeting certain pledged hiring and payroll commitments
- Hoosier Business Investment (HBI) Tax Credit – a non-refundable tax credit that can be carried forward up to ten years, to offset a company’s Indiana corporate tax liability, based upon qualifying capital expenditures
- Skills Enhancement Fund (SEF) Grants – SEF grants, when approved in advance, can be utilized by companies to offset up to 50% of eligible training expenses associated with the hiring or re-training needs of the company.
- Indiana Shovel Ready Program – the program reduces potential costs of site development for businesses by certifying sites to expedite the location and permitting processes for business development.
- Indiana Certified Technology Parks – Columbus is home to two state-certified CTP’s, created as a tool to support the attraction and growth of high-technology business.
- Headquarters Relocation Tax Credit (HRTC) – provides a tax credit to corporations that relocate their headquarters to Indiana. The credit equals half the moving costs and is assessed against the corporation’s state tax liability.
Other State Incentives & Programs of Interest:
- Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit
- Industrial Recovery Tax Credit
- R&D Tax Credit
- Venture Capital Investment Tax Credit
- Patent Income Exemption
- R&D Sales Tax Exemption
- Industrial Development Grant Fund
- Regulatory Ombudsman
- Small Business Innovation Research Initiative
- Tax-exempt Bond Program – Indiana Finance Authority
- Capital Access Program
More information on Indiana incentives can be found here.