Venture Capital Investment (VCI) tax credit expansion – The Indiana Chamber has long advocated for the expansion of the VCI tax credit; including increasing the “cap” beyond $12.5 million, increasing the percentage of the investor’s credit beyond 20% and incentivizing investments into venture funds. Both the House and Senate passed versions indicate that we are on the precipice of accomplishing all three.
If the budget language remains as is, then, beginning in 2022: the cap increases to $20 million; the percentage increases to 25% (30% if the business is a minority or women’s business enterprise) of the investment; and investors will receive a VCI credit equal to 20% of their investment in a “qualified venture fund.”
Broadband funding – The House-passed version called for a $150 million boost to the Next Level Connections broadband grant program, which the Senate increased to $250 million. The bills referenced in the top story (SB 352 and 377; HB 1164 and 1449) improve the underlying program and establish the mechanics for how the funds will be distributed. An outstanding issue, however, is whether the state will use federal (versus state) funds to finance the appropriation and how that decision will impact the budget as a whole.
Regional Economic Development – Both the House and Senate call for $150 million for regional economic development initiatives. Although the budget language is different in the House and Senate versions, the overall objective remains the same: The Indiana Economic Development Corporation will administer a program that seeks proposals from local coalitions for grants or loans for quality of place initiatives aimed at attracting and retaining businesses and talent. While some refer to this as “Regional Cities 2.0,” the potential here is higher for regions to attract public and private “impact” investments.
Resource: Adam H. Berry at (317) 264-6892 or email: aberry@indianachamber.com
