EDCMC CAN HELP PINPOINT WHAT’S BEST FOR YOU
EDCMC is here to help you navigate the tax and incentive opportunities available here in Michigan City through one-on-one assistance. Our team can connect you to vital programs or services, make introductions to relevant leaders and stakeholders, recommend community resources and help you optimize the local- and state-level incentive packages.
Contact us for guidance on the program options available.
Michigan City Tax Credits
Companies operating in the Michigan City Urban Enterprise Zone may be eligible for tax incentives. The purpose of the Enterprise Zone program in Indiana is to stimulate local community and business redevelopment in distressed areas. An enterprise zone may consist of up to three contiguous square miles.
In order to stimulate reinvestment and create jobs within the zone, businesses located within an enterprise zone are eligible for certain tax benefits.
For more information, available benefits, and Enterprise Zone tax benefit forms, please contact:
Michigan City Urban Enterprise Association
PO Box 43
Michigan City, IN 46361
Contact
Office: (219) 873-6860
Email: mcuea1984@gmail.com.
Learn more about the Michigan City Urban Enterprise Association and obtain the Urban Enterprize Zone map.
The Michigan City Redevelopment Commission is a five-member board that oversees the City of Michigan City Department of Redevelopment. Established under state law, the Commission is empowered to clear, plan and redevelop areas impacted by blight and to undertake economic development in previously undeveloped or in developing areas within the city limits of Michigan City, IN.
The Redevelopment Commission’s mission is to address conditions associated with (1) blight (in formally designated “redevelopment areas”) and (2) the underutilization of land or barriers to development (in formally designated “economic development areas”).
TIF is a tool that uses future gains in tax revenue to finance current improvements that will create those gains. When a public project such as road construction or hazardous waste cleanup is carried out, there is often an increase in the value of the surrounding real estate and perhaps new investment (new or rehabilitated for example). This increased site value and investment generate increased revenue. The increased revenues are the “tax increment.” Tax Increment Financing dedicates increments within a certain defined district to finance debt issued to pay for the project. TIF is designed to channel funding toward improvements in distressed or underdeveloped areas where development might not otherwise occur. TIF creates a self-funding mechanism for “public” economic development projects that may otherwise be unaffordable to localities.
The Redevelopment Commission has established Tax Increment Finance Zones: South Gateway, City North, and Eastside.
For more information on the Redevelopment Commission, including TIF maps, current project documents, and more: https://www.emichigancity.com/267/Urban-Enterprise-Association
Michigan City has a designated HUBZone, which encompass most of the north and east portions of the city. The Historically Underutilized Business Zones (HUBZone) program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities. These preferences go to small businesses that obtain HUBZone certification in part by employing staff who live in a HUBZone. The company must also maintain a “principal office” in one of these specially designated areas.
The program’s benefits for HUBZone-certified companies include:
- Competitive and sole source contracting
- 10% price evaluation preference in full and open contract competitions, as well as subcontracting opportunities.
The federal government has a goal of awarding 3% of all dollars for federal prime contracts to HUBZone-certified small business concerns. View a list of the biggest industries, by contracting dollar amount, for HUBZone companies and small businesses; click here.
For more information: www.sba.gov/content/understanding-hubzone-program
The Michigan City Revolving Loan Fund (MCRLF) was established in 2010 with the purpose of stabilizing and expanding the employment base and economy of Michigan City through and attraction of primary employment. In March of 2015, the EDCMC partnered with the Regional Development Company (RDC) Valparaiso, IN. The RDC works in conjunction with the EDCMC and the City of Michigan City to review and process the MCRLF.
Local business seeking information, please visit www.rdc504.org or call 219-476-0504.
Elevate Ventures is one of the largest venture development firms in Indiana, with access to quality deal-flow in Indiana. As a company that sees upwards of 34 deals a month, Elevate Ventures can provide assistance to as many entrepreneurs as possible to get the capital they need. Other assistance includes collaboration on due diligence, shared expertise, corroborated investment decisions, ability to invest in larger deals, and improved diversification and organized public presence.
For additional information: www.elevateventures.com
To facilitate a smooth application process for Industrial Revenue Bonds (IRB), the Economic Development Corporation Michigan City, by and through the Michigan City Economic Development Commission, would like to assist you concerning your application. As no two projects are exactly alike, no two application procedures will be identical. A more detailed description of the process can be obtained through our office.
If you or your attorney have questions concerning applying for an IRB, please contact the Economic Development Corporation Michigan City, Indiana at (219) 873-1211.
The Regional Development Company (RDC) is a Certified Development Company (CDC). CDCs are regional economic development organizations that are licensed by the U.S. Small Business Administration (SBA). CDCs cover various geographic regions that can range from a single county in a state to a multi-state region.
The RDC makes loans under the SBA 504 loan program to assist small business. The RDC processes, approves, closes and services all loans. Funding is arranged by the RDC through the Central Servicing Agent, who issues a bond. In all ways, the RDC is the direct lender for the SBA 504 loan program.
EDCMC partners with the regional RDC and local banks in assisting businesses.
A Foreign Trade Zone or Free Trade Zone is an enclosed, secure area that is located outside U.S. customs territory. A company located within a Foreign Trade Zone does not pay duties or personal property taxes on goods stored within the zone. Foreign and domestic goods may enter a zone to be stored, processed, distributed, manufactured, assembled or exhibited. Foreign trade zones may be classified as general-purpose zones or special- purpose zones (subzones). Subzones are single-user facilities for companies unable to efficiently manufacture or process at the general-purpose zone site.
Zone status provides the opportunity to reduce certain domestic operating costs that are not incurred if operating from a foreign state. Benefits to companies located in a Foreign Trade Zone include the following:
- Duty is deferred on imported goods admitted to the zone, thus improving cash flow for the company.
- No U.S. duty is assessed when exporting goods from the zone.
- Processing goods within the zone can eliminate or lower tariffs.
- Duties can be avoided on defective or damaged goods by inspecting and testing imported goods within a zone.
- Savings may be realized in transport insurance.
- Inventory stored in a Foreign Trade Zone is exempt from local property taxes.
Our office works closely with the Ports of Indiana to designate subzones in Michigan City.
Please contact the Economic Development Corporation Michigan City, Indiana at (219) 873-1211 if you are interested in utilizing the FTZ designation.
Indiana Corporate Tax Credits
The Indiana Economic Development Corporation (IEDC) is the State of Indiana’s lead economic development agency.
The IEDC was officially established in February 2005 to replace the former Department of Commerce.
In order to respond promptly to the needs of businesses, the IEDC operates like a business.
Led by Indiana Secretary of Commerce Jim Schellinger, the IEDC is organized as a public private partnership governed by a 14-member board.
The IEDC Board of Directors is chaired by Governor Eric Holcomb and reflects the geographic and economic diversity of Indiana. The IEDC focuses its efforts on growing and retaining businesses in Indiana and attracting new business to the State.
800-463-8081
www.iedc.in.gov
EDGE Payroll Tax Credit Information: https://www.iedc.in.gov/indiana-advantages/investments/economic-development-for-a-growing-economy-tax-credit/overview
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