State program

Indiana Research Expense Credit

A two-tier credit with a generous rate on the first tranche of qualifying research spending.

Program overview

Indiana provides a research expense credit calculated on the increase in Indiana qualified research expenses over a base period amount, with a higher rate applied to the first $1 million of qualifying increase and a lower rate above that. Taxpayers may elect an alternative simplified method with a reduced rate but a simpler base computation, which is often the better choice for companies with incomplete historical records. Indiana also offers a separate sales tax exemption for research and development equipment.

Eligibility

Taxpayers with qualified research expenses incurred for research conducted in Indiana that would qualify under IRC Section 41.

Benefits

Non-refundable credit against Indiana adjusted gross income tax.

Find out what your research actually qualifies for

A scoping conversation takes thirty minutes and costs nothing. You leave with a view on eligibility, likely credit range and the documentation you would need.