Indiana · Investment · IN-HBI-001
Hoosier Business Investment Credit
Publication revised September 24, 2026. Sourcebook page 108.
Credit amount / calculation
Discretionary credit based on eligible capital investment and project economics; preapproval required.
Business fit and eligible activity
Manufacturing expansions can receive a negotiated credit for qualified capital investment. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.
Illustrative business benefit
A sawmill is replacing a headrig and adding scanning, material handling, and electrical controls in a project of roughly $2.40 million. The credit calculation would be based only on the costs the program recognizes as qualified investment. Before issuing purchase orders, the mill should obtain a written view on whether installation, electrical work, used equipment, and software are included.
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.
EDGE Credit
Credit based on incremental Indiana payroll withholding
Growing employers can negotiate a payroll-based credit tied to new Indiana employment.
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.