Right Taxes and Incentives

Quick Facts

• Low workers’ compensation and unemployment insurance costs.
• Indiana’s Venture Capital Investment tax credit boosts start–up and emerging companies with critical growth capital.
• A new Indiana investment deduction reduces property taxes for businesses of all sizes.
• No inventory tax.
• Corporate income tax based solely on the portion of a company’s sales in Indiana.
• Indiana’s Sales and Use Tax is one of the lowest in the Midwest.
• Indiana has created a state tax exemption on partial income derived from federal patents for new technology or processes. Under the law, qualified utility and plant patents are exempt from taxation on certain income derived from patents.
• Indiana recently created a state R&D sales tax credit, which provides an exemption to companies on the amount they paid in state sales taxes on research and development equipment. The credit applies to laboratory equipment, computers, computer software, telecommunications equipment or testing equipment.
• Indiana’s tax code incorporates the single-sales factor method of income tax apportionment.
• Indiana has the 12th best business climate in the U.S. and is the most highly rated in the Midwest. (Tax Foundation, 2006)
• Among states with a personal income tax and among states with a capital gains tax, Indiana ranks as having the 4th lowest rate in each category. (Small Business and Entrepreneurship Council, October 2006)
• Indiana has the 4th lowest business costs in the nation, based on labor, energy, and taxes. (Forbes, July 2007)