Local Business Incentives

Radius Indiana and local economic development organizations work directly with businesses to provide information about local incentives.

Regional Impact Fund

Businesses in the Radius Indiana region benefit from the Regional Impact Fund (RIF), which supports area growth and expansion efforts. The RIF is a sub-organization of Radius Indiana with a sole purpose of making investments in public and private organizations that advance regional economic development strategies. The RIF makes such investments in the form of grants, loans, equity investments, or other such vehicles deemed to be in the best interests of Southern Indiana. The RIF gives high priority to projects that include job creation, site development and expansion. In 2015, the RIF distributed more than $1 million to area businesses.

Tax Abatement

Tax abatement is offered by local government in south central Indiana to attract private investment and job creation.

Click here to link to our partner Hoosier Energy's tax abatement estimator.

It exempts from property tax all or part of the new assessed value or the increased assessed value of a new investment.

The exemption is for between 1 and 10 years.
  • Only in year 1 is the total amount of the new assessed value exempt from property tax.
  • In each succeeding year, the taxable share (of the portion that was previously exempted from tax) increases.
  • In most cases, tax abatement reduces the owner’s property tax bill by about 50 percent over the full abatement period.

Tax abatement can be granted on:
  • Real property
  • Personal property
  • New construction (only to the increase in assessed value attributed to the new construction)
  • Property rehabilitation (only to the increase in assessed value attributed to the rehabilitation)
  • Any new or used manufacturing equipment that has not previously been taxed in Indiana.
  • Personal property such as laboratory equipment and computers used in experimental research and development laboratories.
 

Business Incentives

Business incentives help make Southern Indiana an enticing place for your business to locate. Incentives include state tax credits and specialized local opportunities. Our regional and local economic development professionals will guide you through the possibilities and make sure your business receives every incentive it needs.
 

State Tax Credits 

 
EDGE Tax Credit
  • Refundable credit
  • Calculated as a percentage of the expected increase in tax withholdings generated from new jobs created
  • Phased in annually for up to 10 years, based on employment ramp-up outlined by the business

HBI Tax Credit
  • Non-refundable credit
  • Calculated as a percentage of eligible capital investment to support the project
  • Phased in annually over 2 full calendar years from the project start
  • May carry forward up to 9 years

Industrial Recovery Tax Credit
  • For companies investing in vacant or underutilized buildings designated as industrial recovery sites (buildings that require significant rehabilitation or remodeling)
  • Calculated as a percentage of qualified rehabilitation expenses

Headquarters Relocation Tax Credit
  • For a business relocating its corporate headquarters to Indiana
  • Credit of up to 50% of the cost incurred to relocate the headquarters
  • The company must have global annual revenue of at least $100 million and employ at least 75 Indiana residents

Venture Capital Investment Tax Credit (VCI) 
  • Non-refundable
  • For qualified applicants who invest in qualified Indiana businesses
  • Credit equal to $1 million or 20% of the qualified investment, whichever is less

Research and Development Tax Credit
  • Income tax credit of 15% of qualified research expenses on the first $1 million of investment
  • Credit eligibility is based on the increase in the company’s R&D expenditures in Indiana over the prior 3 years: Year 1 research expenses must have been at least half of the amount of year 3 (current year) research expenses
  • May be carried forward 10 years
  • No carry back
  • Non-refundable
  • Program operates under the Indiana Department of Revenue
  • Uses the Internal Revenue Code definition of “qualified research expense” (which includes the cost of wages and supplies)

Patent Income Exemption
  • Available only to companies with 500 or fewer employees
  • Exemption from certain income derived from qualified utility and plant patents
  • 10 years of exemptions
  • Exemption may not exceed $5 million per year
Latest News
BEDFORD, Ind. (March 15, 2017) -- Radius Indiana continues its focus on attracting, retaining and expanding businesses in the eight-county region. We work closely with our local economic development organizations to monitor projects, pursue new business leads and conduct outreach to site selectors and companies looking to relocate or expand. During 2016 Radius staff, along with some of our LEDOs, traveled to Cincinnati, Louisville, Indianapolis, Cleveland, Pittsburgh, Evansville, Columbus, Chicago and New York to raise awareness about doing business in the Radius region.
BEDFORD, Ind. (March 30, 2017) - Radius Indiana concluded its inaugural economic development course at French Lick Resort on Thursday afternoon, wrapping up three days of education, networking and skills building for community leaders from across Southern Indiana.

BEDFORD, Ind. (March 10, 2017) — Radius Indiana saw record attendance this week at its annual stakeholders luncheon at the French Lick Resort. Nearly 150 attendees gathered to learn about the organization’s accomplishments from the past year and to hear about initiatives and key focus areas for 2017.
Radius Indiana today announced its new regional economic development conference for community leaders coming to the French Lick Springs Resort in March 2017. 
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Our Latest Blog
Jan. 13, 2017
Crane Army Ammunition Activity is the stalwart at Naval Support Activity Crane. Long before the creation of Radius Indiana, the economic development partnership working to expand, retain and attract business in southern Indiana, Crane was providing jobs and growing the economy in our region.
 
By Matt Craig, Radius Indiana director of Crane Community Support
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