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Chamber of Commerce Downtown Association
765-457-5301
700 E. Firmin Street, Suite 200
Economic Development Inventrek Technology Park
765-457-2000
700 E. Firmin Street, Suite 200
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765-457-6802
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Business Climate

Talk about a "business-friendly" environment!

Kokomo, Howard County, and the State of Indiana offer the kind of tax rates and incentives that help businesses thrive. 

Top Tax Climate 

At a time when other states are raising taxes to keep up with mounting state debt, Indiana’s long history of smart fiscal choices, balanced state budgets and cash reserves in a rainy day fund puts the Hoosier State in a position to actually lower taxes. Indiana’s corporate income tax rate is steadily decreasing each year, from the current 6.5% to 4.9% by 2021.

  • Corporate tax cuts - 6% (4.9% by 2021)
  • Individual tax cuts - 3.23% (down from 3.4% in 2014)
  • No inventory or inheritance tax 

Fiscally Attractive

We’ve spent years adopting sound fiscal policies in Indiana, and today we’re one of only a handful of U.S. states with a AAA credit rating and an actual budget surplus. We’re lowering business taxes this year, next year, and every year after that through 2021. We’re one of the top states for regulatory freedom, and we’re defining a new standard of opportunity for businesses to reach their full potential.

The bottom line is we’re building economic strength and momentum, and it’s propelling us on a trajectory toward growth and prosperity. Where do we go from here? You tell us, and we’ll get started laying the groundwork to help your business grow in Indiana.

State Rankings 
  • "2nd in Cost of Doing Business" - CNBC America's Top States for Business
  • "2nd in Workers' Comp Premium Rate" - Oregon Department of Consumer & Business Services
  • "2nd in Cost of Living" - CNBC 2017 Cost of Living
  • AAA Bond Rating with Standard & Poor's
  • "1st in Best Regulatory Environment by State" - The Pacific Research Institute
  • "8th Best State Tax Climate Index" - The Tax Foundation 
  • "4th Best State for Regulatory Environment" - Forbes Best States for Business & Careers
  • "4th in Property Tax Index" - The Tax Foundation 

Kokomo/Howard County Programs

Property Tax Abatements
available on new equipment or real property improvements for periods up to ten years

Revolving Loan Fund
seeks to revitalize the Kokomo community by providing favorable financing for new and expanding manufacturing, industrial, and service companies • provides 1/3 gap financing up to $300,00 at very attractive rates • can be used for equipment purchases, property improvements, working capital, and more

State of Indiana Incentives

The Indiana Economic Development Corporation (IEDC) is the state's lead economic development organization. Through it, many incentive programs are available for companies creating jobs and raising income in Indiana. Economic development incentives include tax credits based on job creation and capital investment, training grants, and public infrastructure assistance.

Skills Enhancement Fund (SEF)
provides financial assistance to new and expanding companies committed to training their Indiana resident workforce • up to 50% reimbursement of eligible training costs possible for eligible companies • re-application for additional funds to retrain employees allowed after a two-year period

Industrial Development Grant Fund (IDGF)
to help communities meet the public infrastructure needs of a new or expanding business • assistance available for publicly installed infrastructure leading up to, but not onto, a company's property, except in the case of rail spurs and fiber-optic cable

Economic Development for a Growing Economy (EDGE)
based on additional employee payroll withholdings for net new job creation in Indiana • grant may be for a period of up to 10 years • credits refundable and applied against a company's Indiana income tax liability

Hoosier Business Investment Tax Credit (HBI)
available to a company making a "qualified investment" in an Indiana facility • "qualified investment" generally includes new buildings, building improvements, equipment • credit award may equal up to 10% of the qualified investment and may be carried forward for up to nine years • credit percentage and carry-forward term determined by IEDC on case-by-case basis

Venture Capital Investment Tax Credit (VCI)
a non-refundable tax credit available to qualified applicants that provide investment capital to qualified Indiana businesses • aggregate credit amount for a particular qualified business is equal to the lesser of 20% of the qualified investment or $500,000

21st Century Research and Technology Fund (21 Fund)
helps develop and commercialize advanced technologies in Indiana • proposal review process entails 1) a review of the technology or science by experts in the field and 2) an evaluation of the commercial viability of the proposal

The Indiana Department of Workforce Development (IDWD) is committed to delivering high-quality services and programs that enable companies to compete successfully in today’s global economy. Its services range from the provision of training grants to skill assessments and recruitment assistance.

WorkKeys is a skills assessment program developed by ACT for employers and employees wherein professional job analysts work with employers to profile the skills and skill levels needed to be successful on the job • uses “specific” assessment, enabling companies to assess skill gaps, then develop profiles and training programs tailored to specific individual and company needs


If you'd like to learn more about the tax rates and incentives that make Kokomo and Howard County, Indiana, so business-friendly, contact the Alliance.