Indiana · Jobs · IN-EDGE-001
EDGE Credit
Publication revised September 24, 2026. Sourcebook page 107.
Credit amount / calculation
Credit based on incremental Indiana payroll withholding over the approved term.
Business fit and eligible activity
Growing employers can negotiate a payroll-based credit tied to new Indiana employment. Hiring, wages or qualifying training; where the program also requires investment, satisfy both tests.
Eligibility and practical use
This is a hiring credit, not an equipment credit. It becomes interesting only when the planned headcount clears the program threshold and the new jobs satisfy wage, hours, location, and retention rules. A logging contractor should confirm that its industry or work location is within the eligible class before counting the jobs. Hiring before the required certification or reservation can jeopardize the credit.
Illustrative business benefit
Use-of-credit illustration, not an estimated award: assume the agency or completed tax form establishes a $1,000 credit for the qualifying activity described above. With $600 of eligible tax due, a fully refundable $1,000 award would offset that tax and leave $400 refundable, subject to the program's refund procedure. Obtain the actual program calculation before estimating a project benefit.
Timing / first action
Seek approval before starting the overall project, including site work or construction. Contact the administering agency and secure the required approval before the project is publicly or contractually committed.
Official sources
- Indiana Economic Development Corporation — Overview (iedc.in.gov)
Related programs
Community Revitalization Enhancement District Credit
Credit based on qualified investment under district rules
Qualifying fixed-site investment in a designated district can generate a credit.
Hoosier Business Investment Credit
Discretionary credit based on eligible capital investment
Manufacturing expansions can receive a negotiated credit for qualified capital investment.
Research Expense Tax Credit
15% of the first $1 million of qualified research expenses
Qualified Indiana research can generate a state credit for manufacturers.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.