State government leaders and economic developers across the country know that the battle for skilled talent and business investment continues to heat up. Labor shortages create challenges for existing and future businesses. With the recent approval of Indiana Senate Bill 361, the Indiana Economic Development Corporation (IEDC) and local governments across the state now have powerful new tools to attract talent and investment to the Indiana.

The legislation was a priority for Gov. Eric J. Holcomb, Commerce Secretary Brad Chambers and the Indiana Chamber of Commerce.

“These are important updates to our economic development toolkit,” Governor Holcomb said. “IEDC will now be better equipped to propel our economy forward, preparing Indiana for growth and innovation for generations to come.”

A key part of the law gives state and local authorities the ability to work together to create innovation development districts, which can be tailor-made to attract high-visibility transformational projects in sectors such as artificial intelligence, robotics, life sciences and renewable energies. .

“The new law gives Indiana the ability to be proactive in pursuing such investments by taking an ‘if you build it, they will come’ approach,” said Adam Berry, vice president of economic development and Indiana State Chamber of Commerce Technology.

Innovation Development Districts can be created for a specific high-potential property or for a larger area so that economic development officials have a ready-to-use site to pitch potential projects, which will help the state sustain infrastructure improvements and improve its speed and ability to attract large, dynamic economic development projects.

Districts would be created by IEDC in partnership with local authorities to capture the additional sales tax, state income tax and property tax revenue generated in the district from development that takes place. produced there. A state fund created by the levies collected would be managed by IEDC and could be used to acquire land and make infrastructure improvements in the district.

The legislation also gives IEDC more flexibility to structure tax incentives for specific projects, by adding an overall funding cap, which provides more flexibility in structuring incentives using the following tax credits that existed Already: Economic Development for a Growing Economy, Community Revitalization Improvement District, Hoosier Business Investment, Corporate Relocation and Redevelopment Tax Credits.

The new law adds to these a new Film and Media Production Tax Credit, a tool to attract film and digital production crews to the state.

Berry hailed the arrival of the new film and media tax credit for its potential to open up the state to an industry that has not previously viewed Indiana as a competitor in this space. It allows IEDC to offer a tax credit of up to 30% of the value of a specific project.

The popular Netflix series Stranger Things and the drama Self Made, the Netflix limited series about the life of entrepreneur Madam CJ Walker, were both set in Indiana but filmed elsewhere. Berry is optimistic that Indiana will be solidly on the lookout for future projects with the new tax credit.

The new legislation makes it easier for local governments to offer incentives to individuals, helping to attract and retain the talent that new and existing employers depend on. Communities across the state can now use existing funds to offer residency incentives — grants and loans to coworking space memberships — to attract remote workers who can work from anywhere.

The power of these programs is not unchecked. Berry noted that several Indiana communities, including West Lafayette and Greensburg, have appropriated funds and offered incentives with great success.

The strategy of providing incentives to attract individuals to the state is particularly timely, as the number of remote workers in the United States has grown from 5 million to more than 60 million since the start of the pandemic.

“The conversation in economic development circles has shifted from how to attract business to how to attract the talent we need?” Barry said.

Content provided by the Indiana Economic Development Corporation