The IEDC is aggressive and competitive when it comes to government wanting to help Indiana employers grow, retain and train their workforce. The most popular incentive offer from the IEDC is the refundable payroll tax credit which is calculated as a percentage of the expected increase in tax withholdings anticipated on new jobs created. For example, if an Indiana employer currently employs 40 employees and plans to hire an average of 10 employees in each of the next 5 years, the IEDC will calculate the additional Indiana tax withholdings anticipated to be remitted for those new 50 employees for the next 10 years, and refund a percentage of these employee withholdings to the employer as a method of financing the company’s growth. The important word here is refund. An employer does not need to have an Indiana state tax liability to be awarded these refund dollars.
Criteria of eligibility for these credits include:
- A local letter of support from your county or regional economic development organization (Somerset will assist your company in obtaining this letter of support).
- A project that will result in new Indiana employees required to pay Indiana state taxes on their wages.
- An expansion project that will benefit the company’s industry, resulting in the company being more competitive and offering increased opportunities to Indiana residents.
- Plans to expand upon approval of the tax credit.
How can Somerset assist your company in applying for and navigating through this tax credit process?
We have a team of specialized individuals with many years of assisting growing companies through this process. Somerset will introduce your management team to a project manager within the tax credit granting organization. We’ll also advise you on the application process, do a cost/benefit analysis of the tax abatements and credits that are most beneficial to your organization, and we will annually assist with the compliance reporting.
If your company has considered relocating, expanding your footprint in Indiana or annually hiring several Indiana residents, please contact Kelly Hale by phone (317.472.2202) or email () to discuss how this Indiana tax credit program can benefit and assist your company’s expansion dream – no obligation necessary!