Taxation

No Inventory Tax, Low Property Taxes and the Second Lowest Worker's Comp Rates in the U.S.

     

A major indicator of Indiana's competitive business climate is the elimination of the inventory tax. Our legislature did away with the inventory tax in 2007 and passed a law in 2011 to reduce the corporate income tax to 6.5% over four years. Businesses have been showing their appreciation by locating and expanding in the Indianapolis Region at rate well above the national average.

The Indianapolis Region also has relatively low unemployment insurance--a maximum of $189 per employee per year. Business property taxes are also relatively low; they are capped at three percent, or $3 per every $100. The state of Indiana also offers numerous sales tax exemptions. They include: manufacturing raw materials, manufacturing equipment, utilities and other consumables used in production and environmental control equipment used by manufacturers. Transactions involving the purchase, lease or operation of engines or chassis by professional racing teams may be exempt. And most services are not subject to tax.

Taxation At A Glance

• No inventory tax
• 2nd lowest worker comp rates in U.S.
• Low property taxes
• No tax on professional services
• Tax credits, tax abatements and other incentives available
• Venture capital investment credit
• Real and personal property tax abatement, up to 10 years
• “EDGE” tax credits based on the number of new jobs created and wages
• Hoosier Business Investment Tax Credit for up to 10 percent of eligible major new capital investment
• Headquarters Relocation Tax Credit for up to 50 percent of qualified relocation costs
• Patent income tax exemptions
• Biofuels production tax credits
• Community Revitalization Enhancement Districts
• Enterprise Zones
• Certified Technology Parks