Business Incentives

A range of local and state incentives are available to qualifying companies in the South Bend - Elkhart Region to support new, expanding and relocating companies. The South Bend - Elkhart Regional Partnership can help identify potential economic incentives that will match best with your relocation and/or expansion, and facilitate the incentives process with local and State leadership.

Local Incentives

The municipalities and counties in the South Bend - Elkhart Region offer tax abatement, TIF, enterprise zones, industrial revenue bonds, industrial revolving loans. For more detail on each specific county’s incentives, visit their website by clicking a county name below:

State Incentives

Indiana

Indiana state incentives are administered by the Indiana Economic Development Corporation (IEDC). The best mix of incentives is determined on a project basis while the amounts of each incentive are based on a number of factors, including the number of new jobs, capital investment, and average wages. Indiana offers many business tax incentives, corporate tax credits and economic development programs for companies creating new jobs and investment in Indiana. Our business tax structure is also very competitive. Indiana’s corporate income tax is decreasing from the current 6.5% to 4.9% by 2021. As the decrease is phased in, the tax rate will drop each year. Indiana has a flat state corporate tax rate on adjusted gross income and no gross receipts tax or inventory tax. View Indiana Incentives

Michigan

Through a variety of programs and resources, the Michigan Economic Development Corporation offers personalized assistance for businesses starting, relocating or expanding operations in the state. In addition, the state of Michigan ranks among the top 10 states for major new and expanded facilities due to a fair and efficient 6% corporate income tax and $500 million in annual business savings through the elimination of industrial personal property tax. View Michigan Incentives

Foreign Trade Zones

Foreign Trade Zones (FTZs) are special economic zones in the United States where imported goods can be stored, distributed, processed and used without being subject to customs duty. FTZs provide customs-related advantages to help U.S. companies compete in the global marketplace.

Taking Advantage of FTZ #125

  • Located on I-80/90, the principle U.S. truck route, the South Bend Foreign Trade Zone places you at the center of a major Midwestern transportation hub.
  • Imports are landed then quickly moved into the Foreign Trade Zone without full customs processing.
  • U.S. duty, applicable internal revenue taxes, quota restrictions, and bonding, do not apply to goods held in the Foreign Trade Zone.
  • Duty is owed only when the goods are removed from the Zone.
  • Assembly, processing, and manufacturing, may occur in the Zone at cost savings. Many other activities are also permissible.
  • Processed or manipulated goods may qualify for lower duty freight charges.
  • Imported goods qualify for the "Made in the USA" label if value added in the Zone is substantial.

Opportunity Zones

The Opportunity Zones program is a new federal economic development tax incentive designed to funnel private investment to low and moderate-income Census tracts across the U.S. The incentive provides Investors the opportunity to temporarily defer or avoid taxes on capital gains – profits from the sell of an investment – if those gains are reinvested in an Opportunity Fund benefiting low-income communities. These communities are designated as “Qualified Opportunity Zones (QOZ).” Each state will be allowed to designate up to 25% of the eligible tracts for Opportunity Zone status, with the final selections being made by the state’s governor. As of April, Census tracts in 18 states had been designated as Opportunity Zones. These are available for viewing on a map available through CDFI Fund.

Opportunity Zones Located in the South Bend - Elkhart Region

Tract # Reference Total Population Median Income Households in poverty Total Jobs Total Businesses County State
18039000100 Goshen (Downtown) 3,148 38,063 24% 2,368 320 Elkhart IN
18039000302 Goshen (Industrial Development) 6,242 36,935 15% 13,685 344 Elkhart IN
18039001601 Elkhart (River District) 4,910 39,528 6% 5,049 348 Elkhart IN
18039002300 Elkhart (Southwest Industrial Area) 2,582 23,877 27% 3,318 161 Elkhart IN
18039002900 Elkhart (Contiguous Tract to River District) 4,852 32,900 20% 4,686 373 Elkhart IN
18099020500 Plymouth (Mixed Use) 3,466 30,845 37% 7,896 441 Marshall IN
18141000900 South Bend (East Bank) 1,443 30,744 23% 3,530 230 St. Joseph IN
18141001000 South Bend (Innovation Park Notre Dame) 3,469 30,351 30% 1,057 98 St. Joseph IN
18141001700 South Bend (Central Business District) 1,697 17,432 34% 10,368 577 St. Joseph IN
18141002700 South Bend (Renaissance District/Ignition Park) 1,783 26,441 39% 3,832 166 St. Joseph IN
18141002900 South Bend, Near Southeast
(Michigan to Miami, South of Sample)		 1,193 27,488 35% 1,355 45 St. Joseph IN
18141010200 Mishawak (Downtown) 5,509 33,671 21% 4,104 299 St. Joseph IN
18141011100 St. Joseph County (Airport/SB Chocolate Development) 4,525 41,348 19% 695 108 St. Joseph IN
26021020500 Niles, Michigan 2,907 22,567 38% 1,638 243 Berrien MI
26021002500 Benton Harbor, Michigan 2,417 33,985 22% 2,572 52 Berrien MI
26021002100 Fair Plain, Michigan 2,545 20,439 45% 5,482 362 Berrien MI
26021000400 Benton Harbor, Michigan 2,114 13,895 62% 2,910 224 Berrien MI
26021010300 Watervlie City/Township, Michigan 4,662 40,521 17% 2,025 150 Berrien MI
26027002100 Cass County, Michigan 5,973 36,064 25% 3,128 267 Cass MI