Hoosier Business Investment Tax Credit — Discretionary
Funds capital tax credits in Indiana for enterprise expansion and manufacturing strengthening in priority growth sectors.
The Hoosier Business Investment (HBI) Tax Credit is a non-refundable corporate income tax incentive administered by the Indiana Economic Development Corporation (IEDC) to encourage capital investment in Indiana business expansions, relocations, and facility upgrades. The credit is calculated as a percentage of eligible capital investment; third-party summaries indicate rates of up to 10% of qualifying capital investment, 15% for digital manufacturing equipment, and 25% for logistics-related investments. The credit is certified annually based on the phase-in of eligible capital investment over a period of two full calendar years from project commencement.
Because the HBI credit is non-refundable, a business must have sufficient Indiana corporate income tax liability to utilize the full value of the credit each year it is certified. Eligible applicants are for-profit companies committing to capital investment projects in Indiana. There is no open application cycle — prospective recipients must engage IEDC directly to discuss the project before applying through the PIMS portal at iedcportal.iedc.in.gov. The credit terms, eligible investment categories, and performance benchmarks are negotiated and set by agreement with IEDC on a discretionary basis.
The HBI credit is routinely co-packaged with the EDGE payroll tax credit (for job creation) and the Skills Enhancement Fund (for workforce training reimbursement) as part of a comprehensive economic development offer. Applicants should document planned capital expenditures in detail — including equipment type, cost, and deployment timeline — to support the IEDC review and negotiate favorable credit rates. The two-year certification window is tied to project commencement, so understanding the phase-in schedule at the time of negotiation is essential to maximizing the credit's value.
Non-refundable corporate income tax credits for Indiana businesses making eligible capital investments, with rates up to 10–25% of qualifying investment certified over two calendar years.
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