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Economic Development Opportunities in Indiana

Sikich

Apr 4 2022

3 min read

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.

This publication contains general information only and Sikich is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or any other professional advice or services. This publication is not a substitute for such professional advice or services, nor should you use it as a basis for any decision, action or omission that may affect you or your business. Before making any decision, taking any action or omitting an action that may affect you or your business, you should consult a qualified professional advisor. In addition, this publication may contain certain content generated by an artificial intelligence (AI) language model. You acknowledge that Sikich shall not be responsible for any loss sustained by you or any person who relies on this publication.

About the Author

Sikich

Sikich is a global company specializing in technology-enabled professional services. With more than 1,900 employees, Sikich draws on a diverse portfolio of technology solutions to deliver transformative digital strategies and is comprised of one of the largest CPA firms in the United States. From corporations and not-for-profits to state and local governments and federal agencies, Sikich clients utilize a broad spectrum of services* and products to help them improve performance and achieve long-term, strategic goals. *Securities offered through Sikich Corporate Finance LLC, member FINRA/SIPC. Investment advisory services offered through Sikich Financial, an SEC Registered Investment Advisor. 