Financial Incentives

City of East Chicago Programs:
citysealart

Tax Abatement
The City of East Chicago offers seven year tax abatements on personal and real property for qualified industrial and commercial redevelopment and new construction.
Urban Enterprise Zone
The Enterprise Zone Investment Deduction allows participating Enterprise Zone
Businesses to take a ten year State of Indiana Tax deduction for the following qualified investments:
  • Purchase of an existing building
  • Construction of a new building
  • Repair, rehabilitation or modernization of an existing building
  • Onsite infrastructure improvement
  • Purchase of new manufacturing or production equipment
  • Retooling of existing machinery
In order for an Enterprise Zone business to obtain the deduction, an Enterprise Zone Investment Deduction Application must be completed and filed with the Lake County Auditor between March 1 and May 15 of the assessment year. Additionally, the Enterprise Zone business must file an Enterprise Zone Business Registration (EZB-R) form with the Indiana Economic Development Corporation. The registration must be postmarked no later than June 1st of each year.  For more information please contact ecuea@aol.com
Revolving Loan Fund
The City of East Chicago offers fixed rate financing for fixed assets and working capital loans to industrial, commercial, and retail businesses in the City.  Loans are available for business expansion or retention, or for new businesses.  Rates are generally fixed at two points above or below prime, with a minimum rate of 4%.  Five year loans are available for equipment and working capital, and ten years for real estate.  The RLF offers $10,000 for each job created or retained.  The maximum loan amount is $75,000, to be matched with two dollars of private dollars for each RLF dollar. 
Jobs, Education and Training Program (JET)
The JET program helps East Chicago residents find and develop careers by providing them with adequate training programs and referrals. This is accomplished by partnering with business, industry and educational institutions.


State of Indiana Programs:
indianastateseal
Economic Development for a Growing Economy (EDGE)
Businesses that expand in Indiana or will be operating in the state as a result of the program are eligible.  The project must create new, competitively paying jobs for Indiana residents.  Credits are considered when a project would otherwise locate in a different state, and when local governments have committed significant incentives.  Companies agree to operate in the state for at least twice as long as the duration of the credits.  This program provides tax credits based on payroll.  Indiana individual income tax withholdings from company employees can be credited against the company’s Indiana corporate income tax liability.  Excess withholdings will be refunded to the company. 
The credits have no effect on the employee’s income tax liability.
Skill Enhancement Fund (SEF)
The Skill Enhancement Fund (SEF) provides financial assistance to businesses committed to training their workforce Trainees must be Indiana residents. SEF reimburses eligible training expenses over a two-year term. Companies may reapply for additional SEF funds after their initial two-year term. IEDC typically does not provide reimbursement for training that is required by law. 
Venture Capital Investment Tax Credit
This credit was established to improve access to capital to fast growing Indiana companies by providing individual and corporate investors an additional incentive to invest in early stage firms. Investors who provide qualified debt or equity capital to Indiana companies receive a credit against their Indiana income tax liability.
This credit is available to any taxpayer who is an individual or entity that has any state tax liability. Pass through entities whose shareholders have Indiana income tax liabilities are also eligible for the credit. A taxpayer wishing to obtain a credit for investing in a qualified Indiana business must apply to the IEDC for a certification that the proposed investment plan would qualify for a credit. The total amount of tax credits certified by the IEDC for any calendar year may not exceed $12,500,000.
Technology Enhancement Certification for Hoosiers (TECH)
This is a reimbursement grant program designed to help companies meet the demands of the new IT economy by increasing the number or certified information technology workers in Indiana. This program provides financial assistance to companies that are committed to training their workers on the latest information technology.

Federal Programs:
seal-presidential-color

Small Business Administration 504
The SBA 504 Loan Program provides long-term, fixed asset financing for the expansion of small for-profit corporations, partnerships, or proprietorships. Loan funds may be used to purchase real estate, certain
machinery and equipment, or for new construction or building improvements. The loan structure typically requires 10% participation from the borrower, 50% first lien bank financing, and 40% from the SBA.
Interest is fixed, based on 10 or 20 year T-bill rate. One job must be created or retained for each $35,000 loaned. The maximum dollar amount is $1 million.
Small Business Administration 7(a)
The 7(a) program fosters and promotes the growth and development of small businesses by facilitating small business concerns' assess to capital through the utilization of loan guarantees to qualified private
lender participants. The 7(a) program provides loan guarantees to participating lenders for loans advanced to eligible small business concerns. The participating lenders provide all direct funds. Loan maturities are normally limited to 7 years for working capital, 10 years for machinery and equipment purchases, and 25 years for real estate. The maximum guaranty is 85% for loans under $150,000, and 75% for loans more than $150,000. The maximum interest rate is prime plus 2-3/4%. The maximum dollar amount that SBA can guarantee is $1 million.
Empowerment Zone
The Gary, East Chicago, Hammond Empowerment Zone is a federally sponsored comprehensive redevelopment program that affords the three cities the opportunity to create jobs, attract new businesses, strengthen the three communities, and address an aged infrastructure. Tax incentives include:
  • Employee Tax Credits - Credit against federal taxes up to $3,000 for each year of EZ designation for every employee and new hire that lives and works within the EZ boundaries.
  • Section 179 Deduction – Section 179 of the Internal Revenue Code allows businesses to choose to deduct all or part of the cost of certain qualifying property in the year they place it in service.
  • Bond Financing – State and local governments can issue Enterprise Zone Facility Bonds to make loans at lower interest rates to Enterprise Zone Businesses to finance qualified zone property.
  • New Market Tax Credit – Equity investors in qualified Community Development Entities (CDFs) can obtain a tax credit against federal taxes of 5 to 6 percent of the amount invested for each of the years the investment is held, for up to seven years of the credit period.
  • Environmental Cleanup Cost Deduction – Businesses can elect to deduct qualified cleanup costs of hazardous substance in certain areas (brownfields) in the tax year the business pays or incurs the cost.


empowementzone


coutnyseal

Lake County Programs:
Lake County Revolving Loan Fund
The primary function of the Lake County Revolving Loan Fund is to provide short term construction (5 years for Machinery & Equipment) financing to establish or expand eligible industrial or commercial businesses.  Eligible activities include:
  • Acquisition  of building(s)
  • Acquisition of machinery & equipment
  • Acquisition of land only if a structure will be erected
  • Leasehold improvements
  • New building construction
  • Energy conservation
  • Pollution control
  • On-Site infrastructure
Interest rates range from a minimum of 3% and a maximum of 21/2 points under current rates at local financial institutions. The loan amounts range from a minimum of $100,000 to a maximum of $2,000,000.

Richard Morrisroe
City Planner

Ebony Williams-Stringer, 
ewstringer@eastchicago.com

4444 Railroad Ave.
East Chicago, IN 46312
Phone:219-391-8205
Fax:219-391-8522

Office Hours: Monday - Friday
8:30 a.m. - 4:30 p.m.