The City of Jeffersonville understands how difficult it can be to start and run a small business. To encourage the entrepreneurial spirit and help drive new businesses in the area we offer a number of incentives aimed at small businesses, new restaurants, and improved building facades. For questions about incentives contact our office at (812) 285-6406.
Restaurant Forgivable Loan Program
The Restaurant Forgivable Loan Program is aimed at attracting new restaurants to Jeffersonville, and specifically, to the downtown area, in an effort to encourage more activity and create a more viable and attractive area through private/public partnership. Loans are available for projects of more than $10,000. Loans cover up to 50% of eligible expenses, with the maximum loan amount being $50,000. 10% of the loan amount is forgiven each of the first five years of operation. The remaining 50% of the loan is forgiven in the fifth year and the lien released.
Revolving Loan Fund Program
These loan interest funds are available for a period of five years. Businesses are asked to prepare a business plan and meet with the Jeffersonville Economic Development Revolving Loan Committee to explain this plan and how the money will be used. The funds are generated from grants, the proceeds of the sale of notes and the proceeds of bonds issued under I.C. 5-1-14-14 and I.C. 36-9-32.
The Jeffersonville Redevelopment Commission offers grants to commercial and industrial businesses, and property owners along the 10th Street Redevelopment Corridor for facade improvement. These improvements can include general building and property improvements, such as exterior painting, repairs, new and improved signage, awning, landscaping and parking lot resurfacing. This program encourages visual improvement as well as historic preservation and economic investment. The funds for this project are limited and available on a first come, first served basis. The Jeffersonville Redevelopment Commission will reimburse 50% of the project costs, up to $10,000. The project must be pre-approved and comply with approved City of Jeffersonville Planning and Zoning Corridor design plans and requirements. An application must be approved in writing before work begins.;
Businesses in these districts enjoy the benefits of a slightly higher tax, by realizing the improvements that are made to their community through local funds available only to the respective district.
Urban Enterprise Association
The Jeffersonville Urban Enterprise Association offers businesses in the UEZ state tax deductions. Incentives include deductions for improvements made to property in the Zone that increase the assessed value, and deductions for employees who also live in the Zone. To learn more visit the website at www.jeffersonvilleuez.com.
Tax abatements are available for 5 years for personal property, declining 20% per year, and 10 years for real estate with the amount declining 10% per year.
State of Indiana Tax Credits and Exemptions
- Hoosier Alternative Fuel Vehicle Manufacturer Tax Credit – tax credit of up to 15% for the manufacture of alternative fuel vehicles. The manufacturer must agree to operate in Indiana for at least 10 years, and must pay employees at least 150% of the state’s minimum wage.
- Industrial Recovery Tax Credit – Tax credit is a percentage of qualified rehabilitation expense on properties requiring significant rehabilitation or remodeling. The percentage ranges between 15-25% depending on the age of the facility. The facility must have been in service in the last 15 years, and must have at least 15,000 square feet of interior space with at least a 75% vacancy for 1 or more years.
- Media Production Expenditure Tax Credit – Sales tax on personal property is exempt if purchased for use in a qualified Indiana media production. The credit may be up to 15% on the amount spent in the state on qualified production expenditures.
- Research and Development (R&D) Tax Credit – provides a credit for state tax liability for company research expenses. Base year research expenses must be at least half the cost of current year research expenses. The credit equals 15% of qualified research expenses on the first $1 million and may be carried forward 10 years.
- Patent Income Exemption – Companies with 500 or fewer employees may be eligible for 50% patent income for each of the first five years with the percentage decreasing each of the last five years until it is 10% in the tenth year. Exemptions may not exceed $5 million per year. This includes only utility and plant patents.
- Research and Development (R&D) Sales Tax Exemption
- Racecar Sales Tax Exemption – All racecar parts sold in Indiana are exempt from state sales tax. (This does not apply to tires).
- Venture Capital Investment (VCI) Tax Credit – certified investments in motor sports companies, or other high-tech companies, are eligible for a credit against the Indiana tax liability equal to the lessor of 20% or $500,000.
- Agricultural Equipment Sales Tax Exemption – Farmers may be exempt from sales tax for the purchase of seeds, fertilizers, fungicides, and insecticides.
- Economic Development for a Growing Economy (EDGE) – refundable tax credit offered in situations where Indiana is competing with another state for the company’s site selection. EDGE credit is a percentage of payroll tax withholding (up to 100%) for net new jobs in Indiana.
- Hoosier Business Investment Tax Credit – Provides credit against a company’s state tax liability. The credit amount is based on the company’s qualified capital investment, and the potential economic benefits of the investment as determined by IEDC. A company’s credit may be up to 10% of the qualified investment and may be used for as long as 9 years.
- Headquarters Relocation Tax Credit – Businesses that relocate their headquarters to Indiana are entitled for a credit towards their state tax liability of as much as 50% of the costs of relocating the headquarters. The company’s worldwide revenue must be $100 million minimum.
- Industrial Development Grant Fund – Existing companies looking to expand or companies new to Indiana may be assisted in infrastructure projects by this grant which provides local governments money to make off-site improvements including sewer lines, water lines, roads, streets, rails, sidewalks, high technology infrastructure, and the preparation of plans or surveys for the construction of publicly owned facilities and utilities. This grant usually does not exceed half of total costs.
- Neighborhood Assistance Tax Credits – Tax credits are available for non-profit organizations each year up to $50,000 per organization for locating in a disadvantaged area. Eligible organizations include housing, counseling, child-care, educational assistance, emergency assistance, job training, medical care, downtown rehabilitation and revitalization.
- Voluntary Remediation Tax Credit – offers tax credit on state tax liabilities for voluntary cleanup of a brownfield site
- State Corporate Income Tax 8.5%
- State Personal Income Tax 3.4%
- Sales and Use Tax 7.0%