Business Climate

Indiana has the #1 Business Climate in the Midwest and 6th nationally. Chief Executive Magazine-2011

Cost of Doing Business:

Indy Partnership has compiled the following stats to show the low cost of doing business in the state of Indiana:

• 2nd lowest worker comp rates in the U.S.
• 4th lowest property tax rates
• consistently rated in the top 10 best overall tax climate
• NO inventory tax or franchise tax
• NO taxes on most business services.

Incentives:

Local:

• Property Tax Abatement: Available to both new and existing companies making an investment in qualifying real and/or personal property.  The length of an abatement can be for up to 10 years.  Incentive evaluation is done on a case-by-case basis with primary consideration given to capital investment, wages, and new job creation.
• Tax Increment Financing: A financial tool designed to promote economic developmetn adn redevelopment.  A geographic area designated as a TIF District collects property taxes in two ways: Base Revenues and Incremental Revenues.  TIF monies can also be used for a variety of private projects: certain building improvements, equipment purchase and/or set-up expenses, land improvements and/or cost buy-down.  Incentive evaluation is done on a case-by-case basis with primary consideration given to capital investment, wages, and new job creation.
• Workforce Recruitment Assistance: Johnson County works closely with WorkOne to provide our companies any assistance needed such as job fairs.

State:

• EDGE: Economic Development for a Growing Economy tax credits are based on the additional employee payroll withholdings for net new job creation in Indiana.  The grant may be for a period of up to 10 years.  Credits are applied against the company’s Indiana income tax liability and are refundable.
• HBI: Hoosier Business Investment tax credits are available to a company making a ’qualified investment" in an Indiana facility.  Generally, a "qualified investment" includes new buildings, building improvements, and equipment.  The credit award may equal up to 10 per cent of the qualified investment, and may be carried forward for up to 9 years.  The credit percentage and carry-forward term are determined by the Indiana Economic Development Corporation on a case-by-case basis.
• Training Assistance: The Skills enhancement Fund (SEF) provides financial assistance to new and/or expanding companies interested in training their Indiana resident workforce.  Eligible companies can receive reimbursement of up to 50 % of eligible training costs.
• Infrastructure Assistance: The Industrial Development Grant Fund helps communities meet the public infrastructure needs of a new and/or expanding company.  Assistance is available for publicly-installed infrastructure leading up to, but not onto, the company’s property, except in the case of rail suprs and fiber optic cable.
• Permitting Assistance: The Indiana Economic Development Corporation’s Office of Ombudsman can assist companies by serving as a liason between the company, community, and regulatory agencies in an effort to minimize the amount of time spent on regulatory compliance.  The office can also provide permit application assistance and tracking.
• Workforce Development Program: Indiana Department of Workforce Development.
• Energy Programs: Purdue’s Technical Assistance Program-energy Efficiency Section.
• Bonds and Financing: Indiana Finance Authority.

Tax Information:

"Indiana ranks 10th in the Tax Foundation’s State Business Tax Climate Index.  The Index compare the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property.  The ranks of neighboring states were as follows: Michigan (17th), Illinois (23rd), Kentucy (19th), and Ohio (46th)."-Tax Foundation, 2011.

• Corporate Income Tax- The Corporate Adjusted Gross Income Tax is a flat 8.5% of adjusted gross income.
• Single-Sales Factor-Indiana has phased in the single-sales factor for apportioning corporate income tax.  The single-sales factor will calculate the Indiana portion based solely on the portion of a company’s sale’s in Indiana.  This phasing in was completed in 2011.
• Gross Receipts Tax- None.
• Inventory Tax- None.
• Property Tax- Real and personal property tax is assessed at 100 per cent of market value. Tax rates vary among townships.  Please contact our office at 317-736-4300 for specific tax rates.
• Individual Income Tax-Personal income tax is 3.4 % of federal adjusted gross income plus a 1% County Adjusted Gross Income Tax.

Organized Labor Information:

Indiana is a right to work state as of 2012.

Local:

• Johnson County has been historically and continues to be a non-union environment with a few exceptions.  If you have particular questions or need information in regards to organized labor in Johnson County, please contact JCDC’s office at 317-736-4300.

State:

• The Bureau of Labor Statistics report that in 2010 the percentage of employed Hoosiers that were members of a labor union or an employee association similar to a union was 10.9 and the percentage of both union members and workers who report no union affiliation but whose jobs are covered by a union or an employee association contract was 12.2.