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 to 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, tax-exempt revenues and financing's, 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.

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.

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

Workforce Training Assistance

Businesses can apply for reimbursement grants to subsidize the cost of training and retraining employees through the states' 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.  Below describes some programs included in the states' reimbursement grant program.

• The Skills Enhancement Fund (SEF) provides financial assistance to businesses committed to training their workforce.  Businesses can apply for reimbursement grants to subsidize the cost of training and retraining employees over a two-year term.  Trainees must be Indiana residents.  This reimbursement program covers up to fifty-percent of eligible training costs, which include instructor wages, tuition, and training materials. The maximum award for retraining is $200,000.

The Technology Enhancement Certification for Hoosiers (TECH) Fund 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.

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• The Economic Development for a Growing Economy (EDGE) is a refundable tax credit program that rewards companies creating jobs and contributing to the growth of Indiana's economy.  EDGE credits are calculated as a percentage of payroll tax withholding for net new Indiana jobs.  EDGE may be awarded for up to 100% of the projected withholdings attributable to the company's Indiana project, and EDGE tax credits may be awarded for a period not to exceed ten-years. 

• The Hoosier Business Investment Tax Credit (HBITC) program encourages capital investment in Indiana by providing a credit against a company's Indiana tax liability.  The credit amount is based on a company's qualified capital investment with the final credit amount determined through the Indiana Economic development Corporation, based on an analysis of the economic benefits of the proposed investment.  HBITC is established by I.C. 6-3.1.26.

The calculation of Credits is done through the Indiana Economic Development Corporation who certifies the amount of the qualified investment that is eligible for credit and the amount directly related to expanding the workforce in Indiana.

A company's credit award may be up to ten-percent of the qualified capital

investment and may be carried forward for nine-years.  The Indiana Economic Development Corporation determines the applicable credit percentage and carry forward term on a case-by-case basis.

• Industrial Development Grant Funds (IDGF) 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.

• The Hoosier Headquarters Relocation Tax Credit (HHRTC) is for 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. After relocation, the corporation must have 75-employees in Indiana.  However, a company must have worldwide annual revenue of at least $100 million to qualify.

• The Venture Capital Investment Tax Credit (VCTIC) 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.

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.

SBIR/STTR Initiative

After more than two decades of existence, the SBIR Program has established itself as one of the most effective technology programs administered by the federal government.  SBIR/STTR programs are highly competitive and encourage small businesses to explore their technology potential.  SMIR/STTR funding is available from 11 participating agencies throughout the United States and focus on various technology areas.

The 21st Century Research and Technology Fund, an office of the Indiana Economic Development Corporation (IEDC), oversees the mission of the program--to help Indiana businesses compete for and win federal funding.  Additionally, the IEDC SBIR/STTR initiative is committed to assisting Indiana businesses in the commercializing of their prototypes and understands the impact that these companies can have on the economy.  This, coupled with the matching program, will provide Indiana companies with the fuel needed to excel in the SBIR/STTR programs.

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