IN · Tax Credit

Indiana Workforce Training Tax Credits: What Employers Can Claim

Indiana has no tax credit for hiring or training workers in general. The EDGE credit from IEDC is a negotiated, refundable credit tied to jobs you create, up to 100% of the added payroll tax withholdings those jobs generate. The federal Work Opportunity Tax Credit lapsed for people who start work after December 31, 2025. Check with your CPA, and see the training grants on the other pages.

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State pre-filled: IN
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HOW IT WORKS

Four steps, in this order.

1
Talk to IEDC before you commit to the project and new jobs
2
Show net new jobs and local government support
3
Sign the EDGE contract and report every calendar year
4
Claim certified credits on your Indiana return

1 VERIFIED PROGRAM

Where the Indiana money comes from.

Run by Indiana Economic Development Corporation (EDGE) and the IRS (WOTC). Every figure is from an official page, linked on each card.

Economic Development for a Growing Economy (EDGE) payroll tax credit

Up to 100% of new-job withholdings

OPEN, BY IEDC CONTRACT

WHAT YOU GET

A credit equal to a percentage, not over 100%, of the expected added state income tax withholdings from the new jobs you create.

HOW MUCH

Not to exceed 100% of incremental withholdings from the new jobs at the project location. No program cap. The fact sheet says it is refundable and not assignable.

WHO RECEIVES THE MONEY

The employer, as a refundable Indiana corporate income tax credit after IEDC certifies it.

WHO QUALIFIES

Project creates net new jobs not previously done by your employees
Project is economically sound and benefits Indiana residents
The credit is a major factor in your decision to go ahead
Local governments affected have offered significant incentives

Before you start: Yes. Apply to IEDC before you commit to the project. Not receiving the credit must mean the jobs would not be created in Indiana.

AVOID THESE

What gets Indiana Tax Credit claims denied.

Jobs that employees already did. EDGE needs net new jobs.
SOURCE: IEDC.IN.GOV
Committing to the project before applying. The credit must be a deciding factor.
SOURCE: IEDC.IN.GOV
No local incentives from the city or county affected.
SOURCE: IEDC.IN.GOV
Missing annual reports on employment and wage thresholds.
SOURCE: IEDC.IN.GOV

STRAIGHT ANSWERS

Indiana Tax Credit questions.

Is the federal Work Opportunity Tax Credit available for 2026 hires?

No. The IRS says it covers wages for people who begin work on or before December 31, 2025. No extension was found on the IRS page as of September 2026. Check the IRS page for updates.

SOURCE: IRS.GOV

Does Indiana give a credit for training costs?

No Indiana tax credit for training spend was found. Indiana pays training grants instead: the DWD Employer Training Grant and the IEDC Skills Enhancement Fund.

SOURCE: IEDC.IN.GOV

Is EDGE refundable?

Yes. IEDC calls it a refundable corporate income tax credit, but you must have a signed contract and stay in compliance.

SOURCE: IEDC.IN.GOV

Is there a credit for capital investment too?

Yes, the Hoosier Business Investment credit is non-refundable and based on eligible capital investment, not payroll or training.

SOURCE: IEDC.IN.GOV

How we checked. Every fact on this page comes from a state agency, a local workforce board or federal regulation, read on September 30, 2026. Where a board publishes nothing, we say so instead of guessing. Programs and funding change often; confirm with the program before you commit. Written by Jason Meehl, founder of Reimbursa. Found an error? Email hello@reimbursa.com.

OTHER PROGRAMS IN INDIANA

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