Some are calling a change made by Indiana lawmakers, a big win for the tech industry. The change involves a tax incentive for startups, which promises to make it easier for struggling businesses to attract out of state investors.
The legislation signed by Governor Eric Holcomb will allow investors to transfer Indiana’s venture capital. Investment tax credits, which means that out of state investors can sell to someone in the state who can take advantage.
Anyone who invests in an Indiana startup company can claim a tax credit worth 20-percent of their investment. So someone investing $500,000 dollars can get a $100,000 cut in income taxes owed to Indiana.
The credit gives Indiana a selling point over neighboring Illinois, Michigan and Ohio where the tax credit isn’t transferable.