For more information on the following programs or initiatives, please email Jacob Everett, Executive Director of Blackford County Economic Development or call 765-348-4944.
Local (Blackford County, Hartford City, City of Montpelier)
We offer tax abatement to attract private investment and job creation. Abatements exempt all or a portion of new or increased assessed value from property taxes. Typically, the full amount of the new or increased assessed value is abated in the first year, and the abatement percentage is then decreased in each subsequent year as property tax is phased in. Tax abatement can be granted for real and personal property (equipment). A typical standard tax abatement will reduce the amount of property taxes by approximately 50 percent over the full abatement period.
• manufacturing equipment, research and development equipment, logistical distribution equipment, and information technology equipment
• used equipment that has not previously been taxed in Indiana may be abated
• typically up to 10 years, but may be extended up to 20 years for certain projects
• new construction
• improvements/rehabilitation, with the abatement limited to the increase in assessed value attributable to the improvements/rehabilitation
• up to 10 years
Tax Increment Financing (TIF)
TIF funds are tax dollars set aside for the growth, development, and maintenance of a specific area. Both Hartford City and City of Montpelier have established TIF areas to aid projects in areas such as land/building acquisition, equipment purchase, infrastructure development, and worker training. These funds can also be leveraged through the issuance of TIF bonds which provide increased levels of capital for the early phases of a project.
Blackford County, Hartford City, and City of Montpelier have Economic Development Income Tax (EDIT) funds. These funds can be used to assist projects in a variety of ways. EDIT funds can be invested directly to support the project (such as infrastructure development) or provided as cash to the company in the form of a grant, traditional loan, or forgivable loan.
Our community controls multiple tracts of land that are primed for development. This land can be offered to certain projects for free or a reduced rates.
For eligible new employees, we can reimburse the company up to 50% of employee wages for up to six months during training. The training is done by the company in the company’s facility. This is not a tax credit; the company receives a check for the eligible reimbursements to help offset training costs.
We can provide assistance with employee recruitment and screening at no cost to you.
Indiana Michigan Power Economic Development Rider (EDR)
Indiana Michigan Power offers an incentive to both new and existing customers for qualifying projects. This Economic Development Rider (EDR) discount ranges from 30-40% and is applied to the monthly demand charge for 36 months. In order to qualify, the project must meet all four of these requirements:
- must increase load by a minimum of 1,000 kilovolt-amps
- must add at least 10 new FTEs at its I&M territory location
- The project must be in direct competition with an area outside of the I&M service territory,
thereby making the EDR a decision-making factor in the site location process. (The EDR cannot be granted if a decision to locate with in the I&M service territory has already been finalized.)
- The project must fall under one of the approved Standard Industrial Classification (SIC) codes.
Hartford City Revolving Loan Fund
The purpose of the Hartford City Revolving Loan Fund is to provide Blackford County businesses the opportunity to receive financing when conventional sources of financing are not available. The Hartford City RLF: a) encourages the development of new and current industries, b) enhances employment opportunities, c) stops “out migration” of Blackford County’s young people, and d) addresses the reluctance of local lenders to participate as the sole lender in new and innovative projects. Eligible Applicants must be a private, for profit business. Applicants may request up to $10,000 of RLF dollars for each new job created per project. The Hartford City RLF cannot finance working capital, existing debt or noncapital equipment.
ECI Rural Revolving Loan Fund
The purpose of the ECI Rural Revolving Loan Fund is to provide loans to qualified business owners that will result in job creation or retention and will also contribute to the economic development and stability of the region. The Rural Revolving Loan Fund can be utilized by loan recipients for fixed assets, working capital and cash flow in the areas of manufacturing, commercial, retail, service or tourism. The maximum loan to any one individual or business is $40,000. Private financing is to be sought first, however, and the borrower must demonstrate at least a 10% investment into the project.
Flagship Microloan Program
Loans are available to for-profit business for use in financing equipment, working capital, and payroll. (Loans may not be used for real estate purposes.) Loan Amounts rang from $1,000 to $50,000 and have fixed interest rates are generally in the range of 6.5% to 9.0% for up to six years.
State of Indiana
Skills Enhancement Fund
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.
Industrial Development Grant Fund
The Industrial Development Grant Fund (IDGF) provides assistance to municipalities and other eligible entities as defined under I.C. 5-28-25-1. The grant may be provided to reimburse a portion (typically up to 50%) of eligible public infrastructure costs over a period of two full calendar years from the commencement of the project.
Economic Development for a Growing Economy Tax Credit
The Economic Development for a Growing Economy (EDGE) Tax Credit provides incentive to businesses to support job 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 job creation. The credit certification is phased in annually for up to 10 years based upon the employment rampup outlined by the business.
Hoosier Business Investment Tax Credit
The Hoosier Business Investment (HBI) Tax Credit provides incentive to businesses to support job 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.
Headquarters Relocation Tax Credit
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.
Industrial Recovery Tax Credit
The Industrial Recovery Tax Credit provides an incentive for companies to invest in former industrial facilities requiring significant rehabilitation or remodeling expense.
Research and Development (R&D) 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.
Venture Capital Investment Tax Credit
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 against their Indiana tax liability.
Patent Income Exemption
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 not exceed $5 million. The exemption provides that a taxpayer may not claim an exemption for income derived from a particular patent for more than 10 taxable years. The exemption percentage begins at 50 percent of income derived from a qualified patent for each of the first five taxable years, and decreases over the next five taxable years to 10 percent in the 10th taxable year. It also specifies that a taxpayer is eligible to claim the exemption only if the taxpayer is domiciled in Indiana and is either an individual or corporation with not more than 500 employees including employees in the individual’s or corporation’s affiliates or is a nonprofit organization or corporation.
Tax-exempt Bond Program – Indiana Finance Authority
Private Activity Bonds are often called Industrial Revenue Bonds (IRBs) or Industrial Development Bonds (IDBs) and are issued by state or local governmental entities for the benefit of a private company, usually manufacturers. Interest on the bonds is generally exempt from federal income taxes for investors, which typically results in lower long-term interest rates to the borrower.
The Indiana Economic Development Corporation’s regulatory affairs division assists in the process of obtaining the permits and approvals necessary for a business operation. Members of the regulatory affairs staff serve as liaisons between companies, communities, local economic development organizations, and regulatory agencies.