AMERICA PLACE

Indiana Incentives Summary

INCENTIVES SUMMARY EDGE

The Economic Development for a Growing Economy (EDGE) Tax Credit provides an incentive to businesses to support jobs creation, capital investment and to improve the standard of living for Indiana residents. The refundable corporate income tax credit is calculated as a percentage (not to exceed 100%) of the expected increased tax withholdings generated from new jobs creation. The credit certification is phased in annually for up to 10 years based upon the employment ramp-up outlined by the business.

HBI

The Hoosier Business Investment (HBI) Tax Credit provides incentive to businesses to support jobs 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 project. The credit may be certified annually, based on the phase-in of eligible capital investment, over a period of two full calendar years from the commencement of the project.

SEF

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 years from the commencement of the project.

IDGF

The Industrial Grant Fund (IDGF) 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. IDGF will reimburse a portion of the actual total cost of the infrastructure improvements. The assistance will be paid as each Milestone is achieved, with final payment upon completion of the last Milestone of the infrastructure project.

HRTC

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.

Indiana Economic Development Corporation

1 north capitol avenue, indianapolis, indiana 46204 | 800.463.8081 | tel 317.232.8800 | fax 317.232.4146 | iedc.in.gov rev 08.15

EDGE ECONOMIC DEVELOPMENT FOR A GROWING ECONOMY TAX CREDIT

DEscription

The Economic Development for a Growing Economy (EDGE) Tax Credit provides an incentive to businesses to support jobs creation, capital investment and to improve the standard of living for Indiana residents. The refundable corporate income tax credit is calculated as a percentage (not to exceed 100%) of the expected increased tax withholdings generated from new jobs creation. The credit certification is phased in annually for up to 10 years based upon the employment ramp-up outlined by the business.

EliGibility

To be eligible for the tax credit:

• Project will result in net new jobs that werenot previously performed by employees of theapplicant

• Project is economically sound and will benefit thepeople of Indiana by increasing opportunities foremployment and strengthening the economyof Indiana

• Receiving the tax credit is a major factor in theapplicant’s decision to go forward with the projectand not receiving the tax credit will result in theapplicant not creating new jobs in Indiana

• Political subdivisions/municipalities affected bythe project have offered significant incentives tothe business

EVAlUAtion critEriA

Each project will be evaluated on its individual merits and with a cost-benefit analysis after it has met the basic requirements as follows:

• Business commits to new capital investmentin Indiana

• Business commits to the creation of full-time,permanent jobs for Indiana residents at the projectlocation

• Project supports the purpose of the tax credit, andmeets all requirements as set forth in I.C. 6-3.1-13

rEportinG rEQUirEMEnts

Upon execution of an EDGE tax credit contract with IEDC, the business will be required to report for every calendar year during the term of the contract (for every year the business may be certified a credit plus two years)

Information Required:

• Summary statistics relating to capital investmentthat occurred in the applicable year

• Individual employee data to support contractualemployment and wage thresholds

Indiana Economic Development Corporation

1 north capitol avenue, indianapolis, indiana 46204 | 800.463.8081 | tel 317.232.8800 | fax 317.232.4146 | iedc.in.gov rev 03.14

HBITC Hoosier business investment tAX CreDit

DesCrIpTIon

The Hoosier Business Investment (HBI) Tax Credit provides incentive to businesses to support jobs creation, capital investment and to improve the standard of living for Indiana residents. The nonrefundable corporate income tax credits are calculated as a percentage of the eligible capital investment to support the project. The credit may be certified annually, based on the phase-in of eligible capital investment, over a period of two full calendar years from the commencement of the project.

elIgIBIlITy

To be eligible for the tax credit: • Project will result in net new jobs that were

not previously performed by employeesof the applicant

• Project is economically sound and will benefitthe people of Indiana by increasing opportunitiesfor employment and strengthening the economyof Indiana

• Receiving the tax credit is a major factor in theapplicant’s decision to go forward with the projectand not receiving the tax credit will result in theapplicant not creating new jobs in Indiana

• Political subdivisions/municipalities affectedby the project have offered significant incentivesto the business

Eligible capital investment includes new machinery and building costs associated with the project as outlined by I.C. 6-3.1-26-8.

eVAlUATIon CrITerIA

Each project will be evaluated on its individual merits and with a cost-benefit analysis after it has met the basic requirements as follows: • Business commits to new capital investment

in Indiana • Business commits to the creation of full-time,

permanent jobs for Indiana residents at theproject location

• Project supports the purpose of the tax credit, andmeets all requirements as set forth in I.C. 6-3.1-26

reporTIng reQUIreMenTs

Upon execution of an HBI tax credit contract with IEDC, the business will be required to report for every calendar year during the term of the contract for a period of 10 years.

Information Required: • Summary statistics relating to capital investment

that occurred in the applicable year • Individual employee data to support contractual

employment and wage thresholds • Detailed line-item report of eligible investment

costs by invoice

Indiana Economic Development Corporation

1 north capitol avenue, indianapolis, indiana 46204 | 800.463.8081 | tel 317.232.8800 | fax 317.232.4146 | iedc.in.gov rev 10.14

skills enhancement fund

description

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 years from the commencement of the project.

eligible eXpenses

• Trainer’s wages

• Trainees wages. No more than 50% of the awardmay be used for reimbursing trainee wages

• Software licenses for training programs

• Reasonable travel expenses for employees to attendthe training, including conference registration,lodging, airfare, cabs, airport parking, mileage, orrental car expenses may be eligible. No more than30% of the award may be used for reimbursingemployee travel expenses.

• Training expenses incurred between theCommencement and Expiration Dates listedin the grant agreement.

ineligible eXpenses

• Training expenses incurred prior to theCommencement Date or after the Expiration Date.

• OSHA or other federally mandated training.

• Onboard orientation training as it relates tonew hires.

eValuation criteria

Each project will be evaluated on its individual merits and with a cost-benefit analysis after it has met the basic requirements as follows: • Training cost is used to support new capital

investment in Indiana

• Training cost is used to support the retention orcreation of full-time, permanent jobs for Indianaresidents at the project location

• Training cost is eligible, supports the purpose ofthe fund, and meets all requirements as set forthin I.C. 5-28-7

reporting reQuirements

Upon execution of a training grant contract with IEDC, the business will be required to report for every calendar year during the term of the contract which is approximately seven years.

Information Required: • Summary statistics relating to training, training

expenses and capital investment that occur in theapplicable year

• Individual employee data to support contractualemployment thresholds

• Training expense information and data supportingthe positions trained will be required for eachpayment request

Description

The Industrial Grant Fund (IDGF) 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. IDGF will reimburse a portion of the actual total cost of the infrastructure improvements. The assistance will be paid as each Milestone is achieved, with final payment upon completion of the last Milestone of the infrastructure project.

eligible eXpenses

Eligible infrastructure expenses include: • Lease, purchase, construction or repair of real

and personal public property • Preparation of surveys, plans and specifications

for construction of publicly owned and operatedfacilities, utilities and services

• Construction of airport facilities • Construction of tourist attractions • Construction, extension or completion of:

1. Sewer lines and other drainage facilities2. Waterlines3. Roads and streets4. Sidewalks5. Rail spurs and sidings6. Fiber-optic and other IT infrastructure

Indiana Economic Development Corporation

1 north capitol avenue, indianapolis, indiana 46204 | 800.463.8081 | tel 317.232.8800 | fax 317.232.4146 | iedc.in.gov rev 08.14

inDustrial Development grant funD

evaluation criteria

Each project will be evaluated on its individual merits and with a cost-benefit analysis after it has met the basic requirements as follows: • Infrastructure cost is used to support new capital

investment in Indiana • Infrastructure cost is used to support the retention

or creation of full-time, permanent jobs for Indianaresidents at the project location

• Infrastructure cost is eligible, supports the purposeof the fund, and meets all requirements as setforth in I.C. 5-28-25

eligibilitY for paYment

To receive payment for a portion of the actual costs of the Infrastructure Project, the Grantee must submit an invoice showing that the Infrastructure Project Milestone was fully reached.

Indiana Economic Development Corporation

1 north capitol avenue, indianapolis, indiana 46204 | 800.463.8081 | tel 317.232.8800 | fax 317.232.4146 | iedc.in.gov rev 03.14

HRTC headquarters relocation tax credit econoMY tax credit

ELIGIBILITY

Headquarters is defined as the building or buildings where one or more of the following are located:

• The principal offices of the principal executive officers of an eligible business

• The principal offices of a division or similar subdivision of an eligible business

• A research and development center of an eligible business

An “eligible business” is one that:

• Is engaged in either interstate or intrastate commerce

• Maintains a corporate headquarters at a location outside Indiana

• Has not previously maintained a corporate headquarters at a location in Indiana

• Had annual worldwide revenues of at least $50 million for the taxable year immediately preceding the business’s application for this tax credit

• Commits contractually to relocating its corporate headquarters to Indiana

• Company must employ at least 75 employees in Indiana

DESCRIPTION

The Headquarters Relocation Tax Credit (HRTC) provides a tax credit to a business that relocates their headquarters to Indiana. The credit is assessed against the corporation’s state tax liability.

CALCULATION OF CREDITS

The credit is up to 50 percent of a corporation’s approved costs of relocating its headquarters to Indiana, as determined by the IEDC. A nine year carry forward applies to any unused part of the credit.

Eligible relocation costs include: • Moving costs and related expenses

• The purchase of new or replacement equipment

• Capital investment costs

• Property assembly and development costs including:

» The purchase, lease, or construction of buildings and land

» Infrastructure improvements

» Site development costs

Does not include any costs that do not directly result from the relocation of the business to a location in Indiana.

The Headquarters Relocation Tax Credit is established by I.C. 6-3.1-30.

INCENTIVES FROM THE STATE OF INDIANA TO AMERICA PLACE'S TENANTS'!

$1,325,000 - Conditional Tax Credits$119,000 - Training Grants

$800,000 - State Tax Credits and Local Incentives