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

5 4 1 0 3 2 7 6 9 8

New Job Commitments

25 000 20 000 15 000 10 000 5 000 0 2003 2004 2005 2006 2007

New Capital Investment (Billions)

2005 2006 2007 2008 2008 • 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.

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)

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.

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

Indy Airport Expansion

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.

Record Success, World-Class Infrastructure

• 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

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.

Executives Rank Indiana Best in Midwest

1st in the Midwest and 8th nationally

• Best Places for Business Survey • 605 top CEOs

Source: Chief Executive Magazine, Jan. 2008

Contact

Don Foley IEDC (317) 233-3040

[email protected]

www.iedc.in.gov