(INDIANAPOLIS) — A major victory in the 2019 Indiana General Assembly legislative session came with lawmakers approving transferability of the state’s venture capital investment (VCI) tax credit. That step says Indiana Chamber of Commerce President Kevin Brinegar shows how far the state has come but more work remains.
“Two decades ago this tool to attract vital funding to support Indiana entrepreneurs didn’t even exist. That changed following the 2000 publication of the Indiana Venture Capital Study, which was commissioned by the Indiana Chamber of Commerce Foundation.
“That study noted that our peers were moving more quickly in this area, the gap was widening and Indiana was at risk of being put at a serious disadvantage. We can’t afford to lag behind again.”
To that point, the Indiana Chamber Foundation is taking another look at what’s happened the last 20 years with venture capital in the state and where things stand today, especially in relation to competitor states.
Indiana Venture Capital Study: Then and Now, the first of a series of impact reports on Indiana Chamber Foundation studies, is a two-page overview of the state’s status in 1999 and the resulting enactment of the VCI in 2002. It documents Indiana’s improved venture capital ranking in the late 2000s and the subsequent dip as competitor states enacted increased and more flexible credits.
It also highlights what the Indiana Chamber believes is the next needed move for the state – raising the amount of the VCI credit available.
“Indiana’s VCI credit is currently 20%. The incentives for nearby states range from 25% to 50% plus the transferability option,” Brinegar offers. “In addition, strong consideration should be given to raising the $12.5 million annual cap.
“These are the things Indiana must consider and act on in the next few years to stay attractive to entrepreneurs. And it’s what the Chamber will be advocating for at the Statehouse.”
View the new two-page report on venture capital, along with all Indiana Chamber studies, at www.indianachamber.com/studies.
The Indiana Chamber partners with 25,000 members and investors – representing over four million Hoosiers – to achieve the mission of “cultivating a world-class environment which provides economic opportunity and prosperity.”
The Indiana Chamber Foundation commissions practical policy research, initiates actions and seeks solutions that positively impact Indiana’s economic future and enhance the quality of life for all Hoosiers. Learn more at www.indianachamber.com/foundation and view selected previous studies at www.indianachamber.com/studies.