News and Insights

Indiana Updates Its Hoosier Business Investment Tax Credit Program

Tax Development Sep 08, 2016

Indiana Updates Its Hoosier Business Investment Tax Credit Program; Statutory Changes Made Addressing Non-Compliant Taxpayers

Indiana has updated the Information Bulletin #95 to address when the Indiana Economic Development Corporation (IEDC) determines a taxpayer is noncompliant with provisions of the Hoosier Business Investment (HBI) Tax Credit agreement. The Information Bulletin was updated for statute SEA 378 – 2016, which provides the procedures for the recapture of the tax credit claimed.

The HBI Tax Credit provides an incentive to Indiana businesses to support job creation and capital investment. The nonrefundable corporate income tax credits are calculated as a percentage of the eligible capital investment (up to 10% for qualified businesses and up to 25% for a certified logistics investment).

The IEDC is now directed to request the department to issue an assessment for the amount of previously allowed credits, as well as statutory penalty and interest if the taxpayer is noncompliant with the tax credit agreement. Businesses should monitor closely the agreed-upon terms received for any tax incentive to ensure all terms are met and avoid the risk of a clawback.