Incentives & Grants for Businesses in Indianapolis: How to Maximize Growth & Funding
Unlocking Business Growth with Indianapolis Incentives & Grants
Starting or expanding a business requires strategic investment—and Indianapolis offers a range of financial incentives, tax credits, and grants to help businesses grow. Whether you’re a startup, small business, or major employer, understanding available funding programs can make a significant impact on your bottom line.
In this guide, we’ll break down the key incentives at the city, state, and federal levels, along with real examples of businesses that have benefited.
City of Indianapolis Incentives & Programs
The City of Indianapolis provides local incentives to attract and support businesses. These include:
1. Property Tax Abatements
Businesses that invest in real estate, equipment, or infrastructure may qualify for multi-year tax abatements, reducing their property taxes while they scale operations.
Who can apply? Businesses investing in commercial, industrial, or mixed-use properties.
Example: A local tech startup renovating an old warehouse in 16 Tech received a 5-year tax abatement, significantly lowering operational costs.
2. Training Grants & Workforce Development Support
TIF for Training: Helps employers upskill workers with funding for training programs.
Workforce Training Grants: Available for companies creating jobs and training employees in high-demand sectors.
3. Small Business Assistance Grants
Several community partners in Indianapolis such as Indy Chamber Business Ownership Initiative, LISC, Bankable, and the Build Fund provides grants, low-interest loans, and technical assistance for startups and small businesses.
Example: A minority-owned food business in Fountain Square received $25,000 in grant funding to expand operations.
State of Indiana Business Incentives & Tax Credits
The State of Indiana offers several financial incentives designed to encourage job creation, investment, and innovation.
4. EDGE Tax Credit (Economic Development for a Growing Economy)
This performance-based tax credit rewards companies that create high-wage jobs in Indiana.
Who can apply? Businesses creating new, full-time jobs in the state.
Example: A logistics company expanding in Plainfield received $1.2 million in EDGE tax credits after committing to 300 new jobs.
5. Hoosier Business Investment (HBI) Tax Credit
Encourages capital investment by offering a tax credit based on the project’s impact on Indiana’s economy.
Ideal for: Companies investing in machinery, equipment, and facilities.
Example: A biotech firm received a 20% tax credit on new lab equipment purchases.
6. Venture Capital Investment (VCI) Tax Credit
Designed to encourage investment in Indiana startups by offering a tax credit to investors who fund early-stage businesses.
Who benefits? Investors funding eligible Indiana-based startups.
Example: A clean energy startup secured funding faster after its investors qualified for a 35% state tax credit.
7. Research & Development Tax Credit
Businesses investing in R&D activities can receive tax credits to offset costs.
Industries impacted: Tech, life sciences, and manufacturing.
Example: A software development company in Fishers leveraged this credit to hire additional engineers.
Federal Incentives & Grants for Indianapolis Businesses
In addition to city and state incentives, businesses in Indianapolis may qualify for federal funding opportunities.
8. SBA Loans & Grants (Small Business Administration)
7(a) Loan Program: Offers funding for small businesses needing capital for expansion.
Microloan Program: Provides loans up to $50,000 for startups and small businesses.
Who qualifies? Small businesses that meet SBA eligibility criteria.
9. Opportunity Zones Tax Incentives
Indianapolis has designated Opportunity Zones, where investors can receive capital gains tax deferrals for funding developments in targeted areas.
Example: A real estate development group revitalizing a historic building in the Near Eastside benefited from these incentives.
10. Grants for Innovation & Technology (SBIR & STTR Programs)
Small Business Innovation Research (SBIR) Program: Grants for research-driven startups in tech, biotech, and engineering.
Who qualifies? Small businesses working on cutting-edge innovation.
How to Apply for Business Incentives in Indianapolis
🔹 Step 1: Determine eligibility. Review incentive program guidelines to see which fit your business model.
🔹 Step 2: Connect with Indy Economic Development. Our team can help navigate applications and maximize funding opportunities.
🔹 Step 3: Work with financial and legal advisors. Ensure you meet compliance requirements and get the most from tax credits.
Invest in Your Business with Indy’s Incentives
Whether you're expanding a company, launching a startup, or making long-term investments, Indianapolis provides generous incentives to fuel business success.
If you’re ready to explore tax credits, grants, and funding options, let’s connect!