Incentives

Business is made better in Northeast Indiana thanks to a strong track record of attracting and supporting new business investment and economic development through the use of competitive incentives.

Serving as a single point of contact, NEI collaborates closely with state, regional and local entities to secure a competitive incentive package to help businesses succeed.

Custom state incentive packages in ten days or fewer, a streamlined permitting process and public, private and academic collaboration further add to Northeast Indiana’s competitive edge.

Local

Property Tax Abatements

Property tax abatements can be offered on a 10-year basis for new personal and real property tax investments. These abatements are typically phased over a 10-year period (e.g. Year 1: 100 percent, Year 2: 90 percent, Year 3: 80 percent…) but recent legislative changes allow the community to abate up to 100 percent over a 10-year period.

Eligible Vacant Building Deductions

If a commercial or industrial building that has sat 100 percent vacant for a year or longer becomes occupied, the owner/occupant can apply for the eligible vacant building property tax deduction. Documentation must be provided proving that the building has been unoccupied, but actively marketed for sale or lease, for at least a year. The deduction is 100 percent of existing real property taxes for year one and a 50-percent deduction in year two.

Tax Increment Financing (TIF)

TIF allows a community to collect the property tax revenues resulting from the increased assessed value resulting from new investments within a new or established TIF district. The additional revenues can be used to support site infrastructure improvements but can also be used on a cash basis to support new business investment. Unlike many states, Indiana legislation allows for the creative use of TIF to support new business projects.

Grants

Grants are available to support new business investments on a discretionary basis. Through the use of the local option Economic Development Income Tax (CEDIT), Tax Increment Financing (TIF), and various other pools of money, our communities have offered cash grants to support new business development.

Low-Interest Loans

The Community Development Corporation of Northeast Indiana facilitates five loan programs for new and existing businesses interrelated with job creation. These programs can fund a variety of business expenses including building purchase, renovation or construction, equipment and working capital, ranging in size from a few thousand dollars up to $5.5 million on the CDC portion of the project.

Summit City Entrepreneur and Enterprise District (SEED)

SEED focuses on programs that support entrepreneurship, innovation, technology development and small business development. To support these initiatives, grant money up to $1 million is available annually for five years and is funded by the Indiana Economic Development Corporation. SEED also offers tax incentives (Investment Deduction of 100 percent up to 10 years, Abatement Deductions for Vacant Buildings, and Personal Property Assessed Value Floor Exemption) to businesses locating in the SEED boundaries. The district also includes several urban corridors.

Foreign Trade Zone #182

The Foreign Trade Zone (FTZ) program operates in a 12-county region in Northeast Indiana. Any company within this area can apply to be a FTZ Operator, allowing it to defer or even avoid payment of import duties, and often enjoy a lower tariff rate. Restrictions, limitations and regulations regarding how much merchandise can be brought into the country are eased or eliminated as long as the merchandise remains in the FTZ. Visit BizFTZ.com for more information.

Economic Development Revenue Bond

These bonds provide financing for economic development projects. The proceeds from the bonds, which can be issued by a local government, are loaned to businesses to pay for buildings or other capital investment projects. The bonds must be paid back by the company. As the issuer of the bonds, the local government’s participation typically results in favorable interest rates and longer terms. Most often, these bonds are tax-exempt.

Land at No or Reduced Cost

Many communities in Northeast Indiana have acquired property for industrial development purposes. In some cases, this land can be made available at a reduced cost or no cost to support new business development projects that are accompanied by the creation of quality jobs.