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 EDC - Incentives (in.gov)
Related programs
Community Revitalization Enhancement District Credit
Credit based on qualified investment under district rules.
Credit based on qualified investment under district rules.
EDGE Credit
Credit based on incremental Indiana payroll withholding over the approved term.
Credit based on incremental Indiana payroll withholding over the approved term.
Research Expense Tax Credit
Regular method: 15% of the first $1 million of qualified research expenses above the base...
Regular method: 15% of the first $1 million of qualified research expenses above the base; 10% of the excess above $1 million.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally 6% base investment credit and up to 30% with prevailing-wage/apprenticeship...
Generally 6% base investment credit and up to 30% with prevailing-wage/apprenticeship compliance, plus possible statutory bonuses.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based credit beginning at 0.3¢/kWh, with higher rates and bonuses when statutory...
Production-based credit beginning at 0.3¢/kWh, with higher rates and bonuses when statutory conditions are satisfied.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method or the alternative simplified method. The latter generally...
Regular research-credit method or the alternative simplified method.