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Tax Foundation's 2007 State Business Tax Climate Index

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Tax Foundation's 2007 State Business Tax Climate Index Powered By Docstoc
					 Advanced Manufacturing/Logistics Initiative

• Awareness: Generate awareness of initiative and
  goals.

• Support:
  – Educate businesses and stakeholders regarding
    incentives and resources for Advanced Manufacturers.
  – Support workforce education and career development
    initiatives
• Implementation: Deals, Jobs, Investment
                          New Job Commitments
    25,000


    20,000                                                             • Since its
    15,000
                                                                       creation, the IEDC
                                                                       has worked with
    10,000                                                             more than 590
     5,000                                                             businesses who have
                                                                       committed to create
        0
              2003       2004          2005   2006    2007      2008
                                                                       more than 78,000
                                                                       new jobs and invest
                                                                       more than $18.7 B.
                     New Capital Investment (Billions)
9
                                                                       •The average wage
8
7                                                                      for new jobs
6                                                                      committed in 2008 is
5
4
                                                                       $22.47/hour – well
3                                                                      above the State
2                                                                      average of $18/hour.
1
0
             2005               2006           2007          2008
                        Indiana Economic Facts                                                            More Jobs for Hoosiers
                                                                                  3-Years of Record-Breaking Success
                                                                                    * 622 business have committed to create 77,650 jobs and invest
Seasonally Adjusted Unemployment Rate (Oct. 2008): 6.4%                               $18.7 Billion in their Indiana operations since Jan. 2005
   * Lowest unemployment rate of neighboring states, below national avg.
   * Illinois (7.3%), Kentucky (6.8%), Michigan (9.3%), and Ohio (7.3%)           2008
   * National unemployment rate (Oct. 2008): 6.5%                                 17,956 new jobs committed and $4.17B capital investment

Indiana in the International Economy                                              2007
   * Exports from Indiana to foreign countries reached a record $25.9 billion     22,627 new jobs committed and $3.38B capital investment
     in 2007, up more than 14% percent over the previous year                     2006
Commercializing Innovations                                                       21,995 new jobs committed and $8.44B capital investment
  * Through the 21st Century Research and Technology fund, Indiana has            2005
    committed to invest more than $77 million in 59 high-tech companies to        15,467 new jobs committed and $2.75B capital investment
    help each bring their innovations to market, keeping the innovations and
    associated high wage jobs in Indiana.                                         Increasing Hoosier Income
                                                                                    * The average wage for new job commitments from competitive projects
                                                                                      in 2008 is $22.47/hour – well above the state average wage of $18/hour.

                             Recent Rankings                                                            Building the ‘Best Sandbox’
                                                                                  Major initiatives since 2005 aimed at improving Indiana’s competitiveness:
Best Business Environment
  * Indiana ranks fifth in the nation and best in the Midwest for its business    * Major Moves –Ten-year fully funded $12 billion highway plan that includes
     climate (Site Selection Magazine – Nov. 2008)                                more than 200 new construction and 200 major preservation projects
  * Indiana ranked first in the Midwest and eighth in the nation in Chief
                                                                                  * Telecommunications Reform - Indiana’s Telecommunications Deregulation
     Executive magazine’s fourth annual "Best & Worst States" survey.
                                                                                  Act has brought increased competition, leading to new investments and jobs
     Indiana was the highest ranked state outside of the sunbelt in the survey.
                                                                                  * HQ Relocation Tax Credit – Reinforces the state’s commitment to attracting
Cost of Doing Business                                                            new headquarters opportunities to Indiana
   * Indiana has the lowest business cost index in the Midwest and sixth
                                                                                  * Single Factor Sales Apportionment - Eliminates the tax penalty associated
     lowest in the country. (Forbes – July 2008)
                                                                                  with companies adding jobs and investing in new capital equipment in Indiana
   * Indiana ranks first in the Midwest in the Milken Institute’s most recent
     Cost of Doing Business Index - based on: wage cost, tax burden,              * R&D Tax Credit – Provides a tax credit equal to 15% of a company’s first
     electricity cost, industrial rent cost, and office rent cost.                $1 million of qualifying R&D expenditures, giving Indiana one of the highest
                                                                                  R&D tax credit percentages in the country
Top Tax Climate
                                                                                  * Patent Income Exemption - Exempts certain income derived from qualified
   * Indiana ranks 1st in the Midwest and 12th nationally in the Tax
                                                                                  patents from the calculation of a company’s tax liability
     Foundation’s 2008 Business Tax Climate Index
                                                                                  * Buy Indiana – Pumps up to $1.2 billion back into the Indiana economy by
In-Sourcing Jobs                                                                  directing state agencies to purchase goods from Indiana businesses
   * Since 2005, international companies have committed more than
                                                                                  * Health Care Plan – Provides insurance for up to 130,000 low-income
     $8 billion into their Indiana operations and more than 15,800 new jobs
                                                                                  Hoosiers annually and encourages Hoosiers to stop smoking
   * Indiana ranked number one per capita in North America in the creation of
     production jobs through foreign investment in 2007. (IBM 2008 study)                                                            Last Updated: Nov. 21, 2008
Indy Airport Expansion
                R&D Benefits
• Patent Tax Exemption
  – 50% State Income Tax Exemption.

• Research Expense Credits
  – 15% of the first $1 million of R&D expense.

• R & D Sales Tax Exemption
  – No sales tax on R&D equipment.
                IEDC Incentives
• Training Grants
  – Skills Enhancement Fund
  – TECH Grant
  – DWD TAG Grant

• Tax Credits
  – Hiring
  – Capital Investment

• Public Infrastructure Grants
 Regional Economic Development
      Partnership Program
• Encourage communities to think and act
  regionally.
• Two or more counties.
• Up to $150,000, matching grant.
• Wide range of economic development
  activities.
• Must be consistent with IEDC strategic plan.
              Indiana Logistics Rankings
• 1st in # Interstates                          • 5th in truck tonnage
• Shortest distance to the                      • 6th in trucking
  median center of US                             employment
  population.                                   • 7th in NAFTA exports
• 2nd largest Fed-Ex hub.                       • 8th in US waterborne
• 3rd in local freight                            shipping.
  railroads.                                    • 9th in rail tons carried
• 4th in Class 1 railroads                      • 10th in freight rail
Source: Indiana Logistics Directory, Ports of
    Indiana, 2008.                                employment.
    Record Success,
World-Class Infrastructure

• Projects located
in 76 counties

• Nearly 80% within 10 miles of interstate

• More than half from existing Indiana
companies

• Approx. half in cities/towns of < 25K
        Major Moves – Initiative
• Fully funded 10 yr., $12 Billion transportation
  plan.

• FY ‘08 Plan is on track – +50 active projects

• FY ‘09 – Hoosier Heartland, I-69, US 31 (K, SB)

• Projects start sooner, end earlier, save millions.
         Executives Rank Indiana Best in Midwest




1st in the Midwest and 8th nationally
• Best Places for Business Survey
• 605 top CEOs                            Source: Chief Executive Magazine, Jan. 2008
    Contact

     Don Foley
       IEDC
  (317) 233-3040
dofoley@iedc.in.gov
  www.iedc.in.gov

				
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