Tax Abatement –Real Property- Is a phase-in of real property tax obligation from the improvements being made. The phase-in can span from one to a 10 year period. Tax abatement is granted based on qualifying new investment, retained and committed jobs, wages and economic impact of project. Cass County Council approval is required and must occur before construction begins. -Personal Property- Manufacturing, research and development, information technology and logistics/distribution equipment phase-in of personal property (used directly in production, R&D, distribution processes) tax obligation over a one- to ten-year period. Tax abatement is granted based on qualifying new investment, retained and committed jobs, wages and economic impact of project. Cass County Council approval is required and must occur prior to the equipment being operational.
Tax Increment Finance (TIF) – TIF in Indiana permits a local redevelopment commission to designate targeted “allocation areas” for economic development purposes. The Cass County TIF allocation area generates property taxes from new construction in the area and 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 Cass 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 Cass County EDIT funds are traditionally set aside as an incentive pool to support exceptional economic development projects within Cass County.
The Greater Indianapolis Foreign Trade Zone, Inc. (InZone) is Foreign-Trade Zone (FTZ) #72, covering forty-one counties in Central Indiana, including yours! FTZs are federally designated areas within the United States that can be considered to outside of US Customs Territory. The FTZ program provides companies operating in the United States and participating in the program with special international trade-related advantages to improve their competitive position. These advantages can include the delay, reduction, or elimination of customs duties for imports, among other benefits. Find out more about the program and how businesses can save money and become more efficient through the FTZ program by contacting Christy Householder or visiting the InZone website.
State Incentives – Various State of Indiana incentive programs and exemptions are available, and Cass County is 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 – Cass County is currently home to Two state Certified By the Office of Community & Rural Affairs (OCRA) “shovel ready” sites- Platinum and Gold, located in the Cass County Agribusiness Park. 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 – 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 of Indiana Economic Development Corporation Incentives & Programs that may be 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