State Tax Incentives
The State of Indiana offers businesses a wide variety of tax incentives, including:
- 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
- Additional State of Indiana incentives
- Opportunity Zones in Southwest Indiana
Indiana’s corporate income tax is decreasing from the current 6.5% to 4.9% by 2021.
As the decrease is phased in, the tax rate will drop each year.
- 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.
Local Incentives and Tax Rates
The SWIDC member county’s leadership is business-friendly and is able to offer local incentives to companies wishing to relocate or expand in the area.
Tax abatements on real property and equipment are available for 3, 7 or 10 years on new buildings, building improvements and equipment purchases.
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