Business Information for Knox County Indiana

Companies located in Knox County maximize profits and minimize costs by taking advantage of the area's excellent operating environment. They benefit not only from the region's central location, but also from the skilled workforce, low utility rates, and low costs of doing business.

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Business Incentives
Since every company's needs are different, all incentives offered in Indiana are project specific. Thus, "package deals" are not available putting the focus on the needs of each individual customer. Listed below are incentives which might be available.

• 21st Century Research and Technology Fund
  The IEDC SBIR office was formed for just that mission—to help Indiana businesses compete for and win federal funding. Additionally, the IEDC SBIR Initiative is committed to assisting Indiana businesses in the commercialization of their prototypes and understands the impact that these companies can have on the economy. This, coupled with the matching program of the 21st Century fund, will provide Indiana companies with the fuel needed to excel in the SBIR/STTR programs.
  
• Industrial Development Grant Fund (IDGF)
  This grant provides money to local governments for off-site infrastructure projects associated with an expansion of an existing Indiana company or the location of a new facility in Indiana. State funding through the IDGF program must be matched by a combination of local government and company financial support.
• Small Business Innovation Research Initiative (SBIR/STTR)
  The Small Business Innovation Research (SBIR) — along with its sister program, the Small Business Technology Transfer program (STTR) — are highly competitive and encourage small businesses to explore their technological potential. SBIR/STTR funding is available from 11 participating agencies throughout the United States and focuses on various technological areas.
  
• Skills Enhancement Fund (SEF)
  The Skills Enhancement Fund (SEF) provides financial assistance to businesses committed to training their workforce. Trainees must be Indiana residents. SEF reimburses eligible training expenses over a two-year term. Companies may reapply for additional SEF funds after their initial two-year term. IEDC typically does not provide reimbursement for training that is required by law.
• Toolbox Guide to Development Funds
  The Toolbox Guide to Development Funds, managed by Ball State University, is a comprehensive listing of grants, loans, tax programs, and incentives available in the state of Indiana. The searchable database of programs provides the information entrepreneurs require to connect to projects that best fit their needs.
  
• EDIT funds (local incentive)
  Over $500,000 per year from Vincennes/Knox County for Industrial Development.
• Tax Abatement (local incentive)
  Tax abatement is offered by the local governmental taxing unit on real property and equipment. Real property can qualify for a three year, seven year or ten year abatement on new buildings and improvements or increases in assessed value on remodeled or renovated structures. Land does not qualify. Manufacturing equipment (new to the State of Indiana) qualifies for a deduction from assessed value over a ten year period. Equipment not used in direct production, such as office equipment, does not qualify.
  
  The following exemptions or abatements may be available from the local governmental taxing unit:
  • Real Property
    New buildings and improvements or increases in assessed value on remodeled or renovated structures can be abated over a period of ten years. Land does not qualify for abatement. The amount of deduction is determined by the following table.
    

    Year of Deduction	Percentage
    1st	100%
    2nd	95%
    3rd	80%
    4th	65%
    5th	50%
    7th	40%
    8th	30%
    9th	20%
    10th	5%
    11th and thereafter	0%

  • Equipment and Machinery
    Manufacturing equipment, new to the State of Indiana, installed in an approved economic revitalization area qualifies for a deduction from assessed value over a ten year period. The amount of deduction is determined by the following table.

Industrial Revenue Bonds
Industrial Revenue Bonds are available through state or local governments.

The Knox County Development Corporation works aggressively to help meet the locational needs of the client both during the site selection process and after the locational decision is made. The KCDC provides continued support to the prospect after the location and is prepared to aid with programs such as spousal employment network, comprehensive loan program for relocating employees, and providing temporary office space and support.

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Cost of Doing Business
The overall cost of doing business is lower in Indiana than in the surrounding Midwest states. The state's pro-business attitude, conservative fiscal management, reasonable tax rates, low unemployment insurance and workers compensation rates make Indiana an excellent location for all types of businesses.