Available Incentives Terre Haute, Indiana

The City of Terre Haute and Vigo County, in partnership with the State of Indiana, offer a wide variety of incentive programs to businesses that are expanding their operations or those establishing new operations in our community. The Terre Haute Economic Development Corporation works closely with local and state officials to develop customized packages that meet the needs of business and the interests of the community. The scope of project incentives is based on number and type of new jobs created or retained in Indiana, and new capitol investment made in the community.

Business assistance programs include real and personal property tax abatement, public infrastructure grant assistance, job-training grants, state income tax credits, loan guarantee programs and tax increment financing assistance. The THEDC facilitates business requests in the City of Terre Haute and Vigo County for assistance programs. All information required for qualification remains confidential. For assistance, call 812.234.2524 or email us at info@terrehauteedc.com.

Local Incentives

Property Tax Abatement
The Terre Haute Common Council and the Vigo County Council may approve tax abatements on both real and depreciable personal property for manufacturing companies that make a significant investment in our community and create good-paying jobs for our citizens. Real property tax abatement is a declining percentage of the increase in assessed value of real property improvements based upon one of ten time periods and percentages. Land does not qualify for abatement. Depreciable personal property abatement is a declining percentage of the assessed value of newly-installed manufacturing equipment, based upon one of ten time periods and percentages. Used manufacturing equipment can also qualify for abatement as long as the equipment is new to the state of Indiana.

For smaller companies who may not have been eligible for property tax abatement in the past, the Indiana General Assembly recently approved legislation that allows for an automatic property tax phase-in. Companies of all sizes making investments that result in an increase in their property's assessed value can receive an automatic property deduction equal to the lesser of $2 million or increase in the property's assessed value multiplied by:

• 75% in the first year of the deduction;
• 50% in the second year of deduction;
• 25% in the third year of deduction.

Tax Increment Financing Assistance (TIF)
Tax increment is the property tax revenues collected on the increased assessed valuation of real or personal property in an area being developed or redevelopment. Tax increment may also include property tax revenues collected on the increased assessed valuation of depreciable personal property of any designated taxpayer in an area being developed or redeveloped and all other depreciable personal property located and taxable on the designated taxpayer's site of operations in the area being developed or redeveloped.

Terre Haute, Indiana tax increment revenues may be used to pay the principal and interest on any bonds issued for the purpose of financing or refinancing the redevelopment or economic development of the allocation area; establish, augment or restore the debt service reserve for bonds; pay principal and interest on bonds issued by the unit to pay for local public improvements in or serving the allocation area; make payments on leases in the allocation area and provide funding for numerous other initiatives as defined by statute.

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Tax-Exempt Bonds
Tax-exempt bonds provide capital financing at lower rates than most conventional financing sources. Interest rates and terms are negotiated. Bonds are issued through loan, lease, or sale agreements. The bonds can finance facilities for manufacturing and certain other projects. Both the City of Terre Haute and Vigo County have successful track records of working with local manufacturers to provide tax-exempt bond financing. Volume cap is the amount of tax-exempt financing for certain types of private companies allowed in a state in a calendar year. A company must obtain an award of volume cap before it can have tax-exempt bonds issued for its project.

Certified Technology Park
A result of 2002's tax restructuring legislation, the Indiana Economic Development Corporation's Certified Technology Park program encourages the location of high-technology businesses within areas identified by local redevelopment commissions. In Terre Haute, the Rose-Hulman Institute of Technology South Campus was designated as a Certified Technology Park in 2004. Portions of tax revenues generated by tenants are reinvested into the park and used for improvements, operation and maintenance of facilities, payment of interest and principal on bonds and other business-generating activities.

State Incentives

Job Training Assistance
Businesses can apply for reimbursement grants to subsidize the cost of training and retraining employees through the state's Skills 2016 program. This reimbursement program covers up to 50 percent of eligible training costs, which include instructor wages, tuition, and training materials. The maximum award for retraining is $200,000.

The TECH Fund, part of the Skills 2016 program, reimburses activities that result in a full-time employee receiving a portable certification in systems administration, systems engineering, or software development; a professional certification; or other certification in advanced e-business-enabling applications.

Industrial Development Grant Funds (IDGF)
IDGF funds are awarded to eligible units of government to help them meet the infrastructure needs of a new or expanding business. The infrastructure project must support new business development, which is defined as either an expansion of an existing company or the location of a new manufacturing facility. Public-installed infrastructure may be improved up to, but not onto, the company's property; except in the case of rail spurs which may be funded on company property. Eligible Activities include water lines, sewer lines, drainage facilities, wastewater treatment facilities, road improvements, rail spurs and fiber optic cable.

Economic Development for a Growing Economy (EDGE)
EDGE tax credits assist companies that are creating new jobs by locating or expanding in Indiana and companies that are retaining jobs in the state. The credits apply against any Indiana corporate income tax liability incurred as a result of the recipient's project; credits may be awarded for a period not to exceed 10 years. Credits awarded as a result of a company's job creation activities are set as a percentage of the new individual income tax withholdings generated as a result of the recipient's project. In the case of job retention credit awards, the credit is based upon a percentage of the individual income tax withholdings associated with the recipient's projects, along with the local incentive contribution ($1.50:$3.00 match ratio).

The credit amount may exceed the recipient's state tax liability for that year, in which case the excess will be refunded to the taxpayer.

The company must affirm that receiving the tax credit is an influencing factor in its location decision. The EDGE statute requires that the company maintain operations at the project site for at least two times the number of years of the tax credit award and pay an average wage for the new job positions that meets or exceeds the county average wage.

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1. The qualified investment amount invested in the taxable year multiplied by 30%; or
2. The applicant's state tax liability a taxable year minus the greater of:
   1. The taxpayer's state tax liability in the most recent prior taxable year in which the applicant claims a part of the Credit, or
   2. The taxpayer's base tax liability, which is the taxpayer's state tax liability in the year preceding the year in which the qualified investment is made.

A taxpayer may carry forward any unused Credit amounts for not more than nine consecutive years after the year in which the qualified investment is made.

Indiana Development Finance Authority Loan Guaranty Program
The IDFA can guarantee loans for high-growth/high-tech companies, manufactures, rural development projects, value-added agricultural enterprises and other types of businesses that create a significant number of Hoosier jobs. To date, IDFA has provided over $83 million guaranteed loans to Indiana businesses.

Loan Guarantees
The Indiana Development Finance Authority provides loan guarantees secured by real estate and equipment for high-tech, high-growth companies, agribusiness, and some manufacturing companies. The guarantees may be granted for loans used for capital expenditures including land acquisition, building improvements, equipment, facilities, and some working capital. The maximum amount for a single project is $300,000.

Hoosier Headquarters Relocation Tax Credit (HHRTC)
A business that relocates its corporate headquarters to a location in Indiana is entitled to a credit against its state tax liability equal to 50% of the costs incurred in relocating the headquarters. This program does not feature a minimum job requirement to qualify. However, a company must have worldwide annual revenue of at least $500 million to qualify.

Venture Capital Investment Tax Credit (VCITC)
The Venture Capital Investment Tax Credit program is established to improve access to capital to fast growing Indiana companies by providing individual and corporate investors an additional incentive to invest in early stage firms. Investors who provide qualified debt or equity capital to Indiana companies receive a credit against their Indiana tax liability.

Motorsports Tax Credits
The Motorsports Tax Credits specifies that a business primarily focused on professional motor vehicle racing is eligible for certification as a qualified Indiana business for purposes of the venture capital investment tax credit. Also expands the sales tax exemption for tangible personal property used by professional motor vehicle racing teams.

Office of Regulatory Ombudsman
The Indiana Department of Commerce's Office of Regulatory Ombudsman acts as a mediator, expediter and problem-solver in areas affecting businesses, communities and economic development organizations. The Ombudsman's office can assist in the permitting process, serve as a liaison with state agencies and provide information about state regulations and requirements. The Office of Regulatory Ombudsman can be contacted at 800-280-0584.

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