Indiana tax credits reward companies for hiring and raising wages

Economic development tax credits.

Engrossed· 2026-01-27

Who's it for

Who's it for: Businesses

What it means for you

5/10Mixed

Mixed: some good, some bad ·

Cost shift

Draft summary, still being checked against the official bill text. Read the source to confirm.

If passed, Indiana would give companies tax breaks for moving workers in and for paying them at least 25% higher hourly wages.

Our take

What we think, in plain words.

Citizens could see more jobs and higher pay, but the state will lose tax revenue that could mean higher taxes or fewer services.

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The facts

What the bill actually says, no spin.

The bill would let the Indiana Economic Development Corp raise the value of EDGE tax credits for companies that relocate workers.
It would let the Corp give credits to companies that raise an employee's hourly wage by at least 25%.
The bill also clarifies rules for certifying qualified Indiana investment funds.
The Senate passed the bill with 41 yeas and 3 nays and it is now referred to the House.