To assist businesses, the Jay County Development Corporation (JCDC) draws from a wide array of local and state economic development programs. These programs include the following:
Property Tax Abatement
A community initiated incentive that will give a company making a new investment (real or personal property) a phasing-in of their local property taxes. This incentive can be for 1 to 10 years on either new manufacturing equipment (could actually be used equipment, but new to the state of Indiana) or additional building space. In addition, an abatement (phase-in) is available for research and development equipment, logistical equipment and also information technology equipment. The phase-in is reviewed and passed by the local unit of government. This incentive will require a public meeting with either the City or Town Council with review by a local tax abatement review committee.
Tax Increment Financing
A very popular incentive for the enhancing of infrastructure within a community. The local or county redevelopment commission will declare a certain geographic area as part of a Tax Increment District. The taxes on that property are frozen. If development takes place on that property, the incremental increase can be used to provide infrastructure for that parcel. Time and duration of each TIF district is different depending on the amount of revenue needed and the total revenue needed for the project.
Can be combined with tax abatement, which lengthens the time of the TIF. Process starts with a local Redevelopment Commission.
Industrial Revenue Bonds
Industrial Revenue Bonds are a low-cost mechanism of financing a project. Projects that total new investment of $1,000,000 to $10,000,000 (with $10,000,000 being the maximum amount of any one project) are eligible and make economic sense.
The local Economic Development Commission will lend the tax exempt status of the local community to the project with the company receiving a substantially lower interest rate on the bonds. There is substantial cost associated with both the issuance of the bonds and legal fees. Your first step is to consult your local banker and then call the JCDC Office and we can refer you to appropriate legal counsel who will then determine eligibility of project.
County Economic Development Income Tax (CEDIT)
Each employee who is working in Jay County is paying a percentage of their income into a fund that is designated for economic development activities. In some cases, the money has been earmarked for certain infrastructure improvements in the community or county that may directly benefit a company. Many times, a company may reap in-direct benefits from the CEDIT revenue because of these improvements.
The offices of the Jay County Development Corporation can offer you several services to assist in your retention and expansion decision. We can provide your company data which highlights Jay County’s vibrant community and business environment. Information on the following can be provided or presented:
- Business Climate
- Education and Workforce Development Data
- Economic Impact Analysis
- Market Information
- Site and Building Information
Site Selection Services
The JCDC works with existing and prospective companies to help locate available sites and buildings for expansion or start-up projects through a comprehensive database of available properties. The JCDC staff has considerable experience in the site selection process and works closely with area real estate professionals to provide this current and valuable resource. http://www.jcdc.com
State (Indiana) Incentives
Through the assistance of the Indiana Economic Development Corporation and the Indiana Department of Workforce Development, many companies have been able to be assisted in their expansion and growth plans.
Indiana Economic Development Corporation (IEDC): www.iedc.in.gov
Skills 2016 (Skills Enhancement Fund)
A very popular program that will assist a company in the training or re-training of its workforce. The IEDC will assist a company in the training of new hires or the re-training in a certain process for current employees. The ultimate goal of this program is to make Indiana’s workforce very competitive in a world-wide economy and thus enhance the productivity of our companies.
This program is done on a reimbursement basis (company incurs the cost and then seeks reimbursement from IEDC) for the training provided. Various forms of training can be utilized (supervisors who train, use of Ivy Tech State College, outside training vendors, etc.) The IEDC will not exceed over 50% of a training budget for any given company.
Industrial Development Grant Fund
When faced with a location decision, many companies desire to find a site that has ample infrastructure available (gas, water, sewer, etc.). In many cases, it is not available. The state of Indiana will assist communities in bringing that needed public infrastructure to a site for a particular project or company. The state will assist the community in the expansion of water, sewer and road infrastructure. They will also help in the creation of a rail spur and also fiber optic lines. The company will work with the local community in determining the best location for the plant and then will work with the IEDC in formulating cost estimates for the project. IEDC will commit a certain amount to the project, which will go directly to the local unit of government.
Economic Development for a Growing Economy (EDGE)
A company may want to locate in the state of Indiana and there exists a gap between the Indiana offer and what another state is offering, EDGE can step in and fill that gap. If your payroll tax credits exceed your state income tax, you can receive the difference between the two. State approval is necessary for EDGE credits.
Hoosier Business Investment Tax Credit
The Hoosier Business Investment Tax Credit is a tax credit applied toward capital investment made in the state of Indiana. It can actually equal up to 30% of the total capital investment. That investment may include the purchase of equipment, new computers and related equipment, costs associated with the modernization of existing equipment, onsite infrastructure improvements, construction of facilities, costs associated with retooling existing machinery and equipment and costs associated with the construction of special purpose buildings.