COST OF DOING BUSINESS
The cost of doing business in Starke County and Indiana is extremely attractive
to companies. The chart below compares the Cost of Doing Business in Indiana with eight surrounding
Midwestern states by looking at total state business taxes in each state.
- Assumptions: Taxable Income = $1,000,000 and Employment = 100
- Chart depicts Total State Business Taxes (Sum of Corporate State Income Tax, Workers'
Compensation and Unemployment Insurance)
- Source: Indiana Economic Development Corporation (2010)
Starke County and its municipalities offer assistance to new companies through required
infrastructure improvements and tax phase-in. The infrastructure assistance is determined
on a case-by-case basis. Tax phase-in (tax abatement) is reviewed by the governmental
unit in which the project is to be located. If approval is granted, it can be for
up to ten (10) years for both real and personal property and there are annual reporting
documents that must be filed.
For information about eligibility and the tax phase-in process, refer to the Tax Abatement & Criteria memorandum.
In addition, the City of Knox
has a revolving loan fund that can be used on some projects. For more information
on that, you should contact Charles W. Weaver J.D.,
the Foundation’s Executive Director.
The State of Indiana offers incentives ranging from:
- 21st Century Research and Technology Fund – helps
Indiana businesses compete for and win Federal Funding, and assists Indiana businesses
in the commercialization of their prototypes
- Industrial Development Grant Fund – provides money to local
governments for off-site infrastructure projects associated with an expansion of
an existing Indiana company or the location of a new Indiana facility. Must be matched
with a combination of local government and company financial support
- Small Business Innovation Research Initiative – helps encourage
small businesses to explore their technological potential and assists with the expansion
of high technology business in Indiana
Tax-Exempt Bonds - issued by state or local governmental entities for the benefit
of a private company, usually manufacturers. Interest on the bonds is generally
exempt from federal income taxes for investors, which typically results in lower
long-term interest rates to the borrower.
- Loan Guaranty Program – IEDC can provide a loan guaranty to a lender for the benefit
of a high-growth/high-skilled company, manufacturer, rural development project,
value-added agricultural enterprise or another type of business that creates or
retains a significant number of Hoosier jobs.
- Capital Access Program - a small business credit enhancement program that creates
a specific cash reserve fund for the lender to use as additional collateral for
loans enrolled in the Program. CAP allows lenders to consider making slightly riskier
loans that might not meet conventional lending requirements.
- TAX CREDITS
- Economic Development for a Growing Economy Tax Credit (EDGE)
- a refundable tax credit program that rewards companies creating jobs and contributing
to the growth of Indiana's economy. EDGE credits are calculated as a percentage
of payroll tax withholding for net new Indiana jobs. EDGE credits may be awarded
for a period of up to 10 years.
- Headquarters Relocation Tax Credit – a tax credit available
to corporations that relocate their headquarters to Indiana, which allows a credit
against its state tax liability equal to half of the costs incurred in relocating
the headquarters. A company must have worldwide annual revenue of at least $100
million to qualify.
- Hoosier Business Investment Tax Credit (HBITC) - encourages
capital investment in Indiana by providing a credit against a company's Indiana
tax liability. The credit amount is based on a company's qualified capital investment
with the final credit amount determined by the Indiana Economic Development Corporation,
based on an analysis of the economic benefits of the proposed investment.
- Industrial Recovery Tax Credit - provides an incentive for companies
to invest in facilities requiring significant rehabilitation or remodeling expense.
After a building has been designated as an industrial recovery site, companies may
be eligible for a tax credit calculated as a percentage of qualified rehabilitation
- Venture Capital Investment Tax Credit - established to improve
access to capital to fast-growing Indiana companies by providing individual and
corporate investors an additional incentive to invest in early stage firms. Investors
who provide qualified debt or equity capital to Indiana companies receive a credit
against their Indiana income tax liability.
- Media Production Expenditure Tax Credit – provides individuals
and companies a credit of up to 15 percent on the amount spent in Indiana for qualified
- WORKFORCE TRAINING
Skills Enhancement Fund (SEF) - provides financial assistance to businesses
committed to training their workforce. Trainees must be Indiana residents. SEF reimburses
eligible training expenses over a two-year term. Companies may reapply for additional
SEF funds after their initial two-year term. Companies can receive reimbursement
- up to $200,000 - for retraining existing workers. Supplemental grant awards may
be available for training new employees.
The Starke County Economic Development Foundation established the Starke County Initiative for Lifelong Learning (SCILL) to
spearhead local workforce development. The SCILL is managed by Ancilla College.
To assist in guidance, the Foundation has also created an Industrial Advisory Council
consisting of representatives of local industries. This ensures that the training
offered meets the needs and expectations of Starke County industry. Through its
many partnerships, SCILL is able to develop customized training programs to meet
these perceived needs.
The State of Indiana assists in workforce development primarily through the Skills Enhancement Fund (SEF), which is a renewable grant
to support the cost of training a company’s employees.
The Foundation also partners from time to time with local and area organizations
to provide needed training, including: