Taxes and Incentives

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 Abatement

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

Tax Rates