EDGE Tax Credit — Discretionary
Funds refundable payroll tax relief in Indiana for companies expanding with new jobs and workforce growth.
The Economic Development for a Growing Economy (EDGE) Tax Credit is a refundable corporate income tax incentive administered by the Indiana Economic Development Corporation (IEDC) to encourage businesses to create net new jobs and invest capital in the state of Indiana. The credit is calculated as a percentage — not to exceed 100% — of the expected increased tax withholdings generated from newly created positions. Unlike most state job-creation credits that are one-time awards, the EDGE credit is certified annually for up to 20 years, phased in according to the employment ramp-up schedule negotiated between the business and IEDC at the time of award.
Eligibility is limited to for-profit businesses making a demonstrable commitment to net new job creation and capital investment in Indiana. The credit is refundable, meaning businesses with insufficient Indiana corporate income tax liability may still receive the benefit as a cash payment. There is no open application cycle or competitive deadline — companies initiate the process by engaging IEDC directly to discuss their project before submitting a formal application through the PIMS (Project Information Management System) portal at iedcportal.iedc.in.gov. IEDC exercises full discretion over whether to extend an offer and on what terms.
The EDGE credit is frequently packaged with other IEDC incentives — particularly the Hoosier Business Investment (HBI) tax credit for capital investment and the Skills Enhancement Fund (SEF) for workforce training — as part of a coordinated economic development deal. Businesses seeking EDGE should prepare detailed projections of net new headcount, wage levels, and capital investment to support negotiation. The credit percentage, annual certification schedule, and performance clawback provisions are all set by agreement at the time of award, making early engagement with IEDC's investment team the critical first step.
Refundable corporate income tax credits for Indiana businesses creating net new jobs, calculated as a percentage of increased employee tax withholdings and certified annually for up to 20 years.
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