Eligible employers could get Indiana tax credits for relocating workers

Indiana's economic development agency could award a tax credit of up to the worker's withheld income taxes plus $10,000. This covers new Indiana jobs filled by full-time workers whom the agency determines are new state residents. The employer must help workers relocate, and the project must involve research, manufacturing, or business services. New employees' average pay and benefits must exceed twice the state average wage. Other requirements for credits tied to new jobs also apply. If enacted, this provision would take effect July 1, 2026.

The agency could agree to give an employer a tax credit for keeping workers by raising their wages. The employer must keep existing Indiana jobs held by full-time Indiana residents. Officials must find that the credit is a major reason for raises of at least 25% and would lower the risk of losing workers and cutting jobs or leaving positions vacant. Other job-retention requirements named in the bill also apply. If enacted, this provision would take effect July 1, 2026.

Indiana's economic development agency could certify an investment fund that meets the stated requirements. This applies to investment funds seeking Indiana certification. The fund's policy must focus on companies turning research or new technology into products and give priority to companies with a substantial Indiana presence or past support from a state research fund. The policy applies to money available for investment, excluding fees and operating expenses. The fund must also meet a separate legal definition. If enacted, this provision would take effect July 1, 2026.