Local and State Incentives

Beyond Federal and State R&D Tax Credits, there are additional high-value incentives offered at local and state levels for companies across a wide variety of industries.

Most states want to attract, retain, and grow businesses and high-paying job opportunities in their back yard. While the specifics vary widely from state to state, most states currently have programs to reward businesses (in the form of tax credits) for activities such as:

  • New job creation
  • Headquarter relocation
  • Capital investment
  • Employee skills development and training
  • Venture Capital Investment

By way of example, the state of Indiana offers a range of tax incentives, corporate tax credits, and economic development programs that encourage investment and business growth. These programs cover a wide range of opportunity, including:

  • Economic Development for a Growing Economy (EDGE) – Payroll Tax Credit
  • Headquarters Relocation Tax Credit (HQRTC)
  • Hoosier Business Investment Credit
  • Skills Enhancement Fund (SEF)
  • Venture Capital Investment Tax Credit (VCITC)

The process of identifying local and state incentives can be a slow process without an expert guide to help along the way. Hull & Knarr communicates directly with state and local constituents to save time and resources, letting companies focus on their core business. To explore local and state opportunities with a Hull & Knarr expert, contact us.

Hull & Knarr EDGE Case Study

A start-up software company, incorporated in 2018, planned to develop and market an e-commerce customer retention technology to enable retailers to encourage repurchase and enable highly customized interactions. The company’s plan included locating in Marion County Indiana, acquiring a dedicated office space with supporting assets, and scaling from 4 employees in 2018 to 51 in 2022. Hull & Knarr worked with the company and the Indiana Economic Development Council to secure $800,000 in EDGE tax credits. The company will have until 2022 to use the entire award amount and Hull and Knarr will be responsible for the annual reporting requirements to remain in compliance with the credit. Additionally, the company will be eligible for a Federal Research Tax Credit which will be used to offset payroll tax and an Indiana Research Tax Credit. The total amount of this incentive will be approximately 10% of the amount spent on R&D each year.

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