Research & Development Incentives
The state of Indiana offers two tax incentives targeted at encouraging investments in research and development. Taxpayers may receive a credit against their Indiana state income tax liability calculated as a percentage of qualified research expenses. In addition, taxpayers may be refunded sales tax paid on purchases of qualified research and development equipment. The Indiana Department of Revenue oversees these incentive programs. Select from the menu to learn about our Research Expense Credits and our Research and Development Sales Tax Exemption.
The potential value of incentive amount varies based upon the amount of the qualifying transaction. A taxpayer who qualifies for the exemption must claim the exemption in a manner prescribed by the Indiana Department of Revenue. The form used to claim the exemptions is available at www.in.gov/dor.
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Category: State Incentives
Indiana’s Film and Media Tax Credit offers an income tax credit up to 30%, that can be applied to offset certain production expenses. Eligible productions include feature length films, including independent or studio production, or a documentary; a television episodic series, program, or feature; music...
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The Headquarters Relocation Tax Credit (HRTC) provides a tax credit to corporations that relocate their headquarters to Indiana. The credit is assessed against the corporation’s state tax liability. The Headquarters Relocation Tax Credit is established by I.C. 6-3.1-30.The Small Headquarters Relocation Tax Credit (S-HQRTC) provides...
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The Hoosier Business Investment Tax Credit provides incentive to businesses to support job creation, capital investment and to improve the standard of living for Indiana residents. The non-refundable corporate income tax credits are calculated as a percentage of the eligible capital investment to support the...
Learn More about Hoosier Business Investment Tax Credit (HBI)
The Industrial Grant Fund provides assistance to municipalities and other eligible entities as defined under I.C. 5-28-25-1 with off-site infrastructure improvements needed to serve the proposed project site. Upon review and approval of the Local Recipient’s application, project specific Milestones are established for completing the improvements...
Learn More about Industrial Development Grant Fund (IDGF)
Certain income derived from qualified patents and earned by a taxpayer are exempt from taxation. The Tax Exemption for Patent-derived Income defines qualified patents to include only utility patents and plant patents. The total amount of exemptions claimed by a taxpayer in a taxable year may...
Learn More about Patent Income Tax Exemption
The Skills Enhancement Fund (SEF) provides assistance to businesses to support training and upgrading skills of employees required to support new capital investment. The grant may be provided to reimburse a portion (typically 50%) of eligible training costs over a period of two full calendar...
Learn More about Skills Enhancement Fund (SEF) - Workforce Training Grant
The Venture Capital Investment Tax Credit program improves access to capital for 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...
Learn More about Venture Capital Investment Tax Credit (VCI)
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