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
Since its creation, the IEDC has worked with more than 590 businesses who have committed to create more than 78,000 new jobs and invest more than $18.7 B. The average wage for new jobs committed in 2008 is $22.47/hour – well above the State average of $18/hour.
Indiana Economic Facts Seasonally Adjusted Unemployment Rate (Oct. 2008): 6.4% * Lowest unemployment rate of neighboring states, below national avg. * Illinois (7.3%), Kentucky (6.8%), Michigan (9.3%), and Ohio (7.3%) * National unemployment rate (Oct. 2008): 6.5% Indiana in the International Economy * Exports from Indiana to foreign countries reached a record $25.9 billion in 2007, up more than 14% percent over the previous year Commercializing Innovations * Through the 21st Century Research and Technology fund, Indiana has committed to invest more than $77 million in 59 high-tech companies to help each bring their innovations to market, keeping the innovations and associated high wage jobs in Indiana. More Jobs for Hoosiers 3-Years of Record-Breaking Success * 622 business have committed to create 77,650 jobs and invest $18.7 Billion in their Indiana operations since Jan. 2005 2008 17,956 new jobs committed and $4.17B capital investment 2007 22,627 new jobs committed and $3.38B capital investment 2006 21,995 new jobs committed and $8.44B capital investment 2005 15,467 new jobs committed and $2.75B capital investment 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 Best Business Environment * Indiana ranks fifth in the nation and best in the Midwest for its business climate (Site Selection Magazine – Nov. 2008) * Indiana ranked first in the Midwest and eighth in the nation in Chief Executive magazine’s fourth annual "Best & Worst States" survey. Indiana was the highest ranked state outside of the sunbelt in the survey. Cost of Doing Business * Indiana has the lowest business cost index in the Midwest and sixth lowest in the country. (Forbes – July 2008) * Indiana ranks first in the Midwest in the Milken Institute’s most recent Cost of Doing Business Index - based on: wage cost, tax burden, electricity cost, industrial rent cost, and office rent cost. Top Tax Climate * Indiana ranks 1st in the Midwest and 12th nationally in the Tax Foundation’s 2008 Business Tax Climate Index In-Sourcing Jobs * Since 2005, international companies have committed more than $8 billion into their Indiana operations and more than 15,800 new jobs * Indiana ranked number one per capita in North America in the creation of production jobs through foreign investment in 2007. (IBM 2008 study) Building the ‘Best Sandbox’ Major initiatives since 2005 aimed at improving Indiana’s competitiveness: * Major Moves –Ten-year fully funded $12 billion highway plan that includes more than 200 new construction and 200 major preservation projects * Telecommunications Reform - Indiana’s Telecommunications Deregulation Act has brought increased competition, leading to new investments and jobs * HQ Relocation Tax Credit – Reinforces the state’s commitment to attracting new headquarters opportunities to Indiana * Single Factor Sales Apportionment - Eliminates the tax penalty associated with companies adding jobs and investing in new capital equipment in Indiana * R&D Tax Credit – Provides a tax credit equal to 15% of a company’s first $1 million of qualifying R&D expenditures, giving Indiana one of the highest R&D tax credit percentages in the country * Patent Income Exemption - Exempts certain income derived from qualified patents from the calculation of a company’s tax liability * Buy Indiana – Pumps up to $1.2 billion back into the Indiana economy by directing state agencies to purchase goods from Indiana businesses * Health Care Plan – Provides insurance for up to 130,000 low-income Hoosiers annually and encourages Hoosiers to stop smoking Last Updated: Nov. 21, 2008
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 1 st in # Interstates Shortest distance to the median center of US population. 2 nd largest Fed-Ex hub. 3 rd in local freight railroads. 4 th in Class 1 railroads Source: Indiana Logistics Directory, Ports of Indiana, 2008. 5 th in truck tonnage 6 th in trucking employment 7 th in NAFTA exports 8 th in US waterborne shipping. 9 th in rail tons carried 10 th in freight rail employment.
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 Record Success, World-Class Infrastructure
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.
1st in the Midwest and 8th nationally Best Places for Business Survey 605 top CEOs Source: Chief Executive Magazine, Jan. 2008 Executives Rank Indiana Best in Midwest
Contact Don Foley IEDC (317) 233-3040 email@example.com www.iedc.in.gov