Tax Candi

During my time in Indiana, I noticed there is a bit of rivalry between Illinois and Indiana. This rivalry is apparent in many places-- Bears vs. Colts, U of I vs. IU, and apparently, EDGE tax credit vs. EDGE tax credit.

My inaugural post was about the Illinois EDGE program. And while I am loathe to cast my current home state in anything but a pleasant light, Indiana did the EDGE first, and it does it better (better = refundable).

Indiana's EDGE offers eligible companies a refundable tax credit against income tax liability for the creation of new jobs. "Job Creation" means jobs that were not previously performed by employees of the company in Indiana. The company must be able to show that the receipt of the tax credit is a major factor in the decision to locate in Indiana, and must maintain operations in Indiana for at least two years beyond the term of the company’s EDGE award (in other words, up to 12 years).

The EDGE Tax credit is calculated as a percentage of payroll tax withholding for net new Indiana jobs, and may be awarded for up to 100% of the projected withholdings attributable to the company’s Indiana project. The tax credit is awarded for up to 10 years.

Interested companies must apply to Indiana Economic Development Corporation (IEDC).  The amount and duration of the credit is determined by negotiations the IEDC.