As part of Senate Bill 23, Indiana has created a temporary new employer tax credit available against the corporate and personal income tax and the insurance premiums tax. The credit may be claimed by a person, corporation or pass-through entity that after December 31, 2009:

(1) either (a) locates or relocates the operations of a business enterprise in Indiana, (b) incorporates or otherwise first organizes in Indiana, or (c) expands the entity’s operation of a business enterprise in Indiana;
(2) employs at least 10 qualified employees;
(3) makes an application to the Indiana Economic Development Corporation (IEDC); and
(4) is issued a certificate of approval by the IEDC.

All applications must be submitted to the IEDC prior to January 1, 2013.

The credit amount is equal to 10% of the wages paid by the new Indiana business to qualified employees during a 24-month period. The credit can be carried forward for nine years, but taxpayers are not entitled to any carryback or refund of any unused credit.

Also, the requirement that an existing business employ 35 or more employees to qualify for an economic development for a growing economy (EDGE) credit is removed for tax years beginning on and after January 1, 2010. For more information on the EDGE credit: http://www.in.gov/iedc/EDGE.htm

Please contact us with questions.