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State and Local Incentives
A variety of incentives exist within the State of Indiana and Steuben County to assist local companies grow existing operations, and to assist new companies investing in Steuben County. Below is a brief summary of the available formal programs that can be used for existing and new companies.
Property Tax Abatement: This program is the most common used local programs. The Steuben County Council, Angola City Council and town councils in Ashley, Clear Lake, Hamilton, Hudson, Fremont and Orland have been granted the authority to phase in new assessed value resulting from an investment in new machinery & equipment, building improvements and expansions, and new buildings. The duration of the phase in may span from one to 10 years, at the discretion of each local council. The table below provides the available deduction schedules:
Tax abatement programs are typically reserved for manufacturing, distribution/logistics, research and development and information technology type investments. However, municipalities may expand uses to retail and commercial types of investment for area-specific redevelopment projects.
Tax Increment Financing (TIF): Tax Increment Finance or TIF is a financial tool available to local counties and municipalities that have created a Redevelopment Commission and an Economic Development Area. The assessed value of an Economic Development Area is frozen at the time of creation, with tax revenues from the base assessed value continuing to be shared with the various taxing units (state, county, school, library, municipality, etc.). Tax revenues generated from new assessed value is captured is a fund controlled by the Redevelopment Commission and may be used to benefit the Area or as direct incentives for businesses operating within the Area. Typically and Area is created for the purpose of redevelopment of infrastructure or to provide direct incentives to a project involving substantial capital investment. Direct incentives are typically a negotiated process, which may be expedited as necessary.
Angola Investment Fund: The City of Angola has created an investment fund for the specific purpose of supporting entrepreneurs and innovation in and around the City. This fund is designed to provide investments limited to $100,000, as a convertible loan. No principle or interest is required to be repaid in the initial three years, however, no prepay penalty exists either. At the discretion of the Angola Investment Fund, the investment may be converted into a low interest loan or into equity in the company financed. This fund is presently being developed and has, to date, not made any investments. Applications are available HERE.
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. Eligible expenses include all expenses associated with employee training, except trainee wages, on-boarding and safety training (OSHA).
Industrial Development Grant Fund: This grant provides money to local governments for off-site infrastructure projects associated with an expansion of an existing facility or location of a new facility in Indiana. A 50% match from local government and/or company financed funding is required. Eligible expenses include airport facilities, sanitary sewer lines, water lines, roads, rail spurs and information technology.
The State of Indiana offers a variety of tax credit and exemption programs on a competitive and non-competitive basis.
Competitive programs include:
- Economic Development for a Growing Economy Tax Credit (EDGE)
- Hoosier Business Investment Tax Credit
Non-competitive Tax Credits include:
- Headquarters relocation Tax Credit
- Industrial Recovery Tax Credit
- Venture Capital Investment Tax Credit
- Research & Development Tax Credit
- Hoosier Alternative Fuel Manufacturer Tax Credit
- Patent Income Exemption
- Research & Development Sales Tax Exemption
Tax-exempt Bond Programs
The Indiana Finance Authority (IFA) exists to assist with issuance of Industrial Revenue Bonds (IRBs) in the State of Indiana. IRBs can lower costs for financing manufacturing projects, health care facilities, private institutions of higher education and certain other qualified projects. Applicants must first be awarded “Volume Cap” to proceed with this tax-exempt financing program. In an effort to control administrative costs associated with the bond financing, IFA has developed a two-tier system:
- Large Bond Program (for lower-interest borrowing of amounts more than $3 million)
- Small Bond Program (for lower-interest borrowing of amounts $3 million or less)
Workforce Development Programs
Steuben County is served by WorkOne Northeast for a variety of State and federally sponsored workforce development programs. WorkOne Northeast provides a number of services essential for business expansion and location projects.
- Candidate Search (Statewide database)
- Applicant Screening & Testing
- Training & Education Assistance