Indiana Venture Capital Investment (VCI) Tax Credit
Indiana Economic Development Corporation (IEDC) / Indiana Department of Revenue
25-30% of investment
25-30% credit for Indiana startup investors
Indiana's Venture Capital Investment (VCI) Tax Credit rewards investors who provide qualified capital to certified Indiana startups. An investor earns a 25% credit on a qualified investment in a standard Qualified Indiana Business (QIB), up to a $1 million lifetime allocation, or 30% on an investment in a women- or minority-owned QIB, up to $1.5 million. Investments in certified Qualified Indiana Investment Funds earn 20%, up to $5 million per calendar year. The business must first be certified by the IEDC as a QIB, and the investor must obtain approval of a capital investment application before making the investment. The credit is non-refundable but assignable (it may be sold to another taxpayer for cash), and unused amounts carry forward up to five years. The statewide annual credit cap is $20 million.
- Funding type
- Tax credit
- Level
- State
- Amount range
- 25-30% of investment
- Realistic amount
- An investor putting $100,000–$400,000 into a certified Indiana startup earns a $25,000–$100,…
- Deadline
- Rolling — the business obtains QIB certification and the investor obtains capital investment application approval before investing; credits awarded until the $20 million annual statewide cap is reached.
- Status
- active
- States
- Indiana
- Payment model
- tax-credit-offset
Who qualifies
- Business must be certified by the IEDC as a Qualified Indiana Business (QIB), or a fund certified as a Qualified Indiana Investment Fund
- Investor must submit and obtain approval of a capital investment application from the IEDC before making the investment
- The qualifying investment must be made within two years after the IEDC approves the investment plan
- 25% credit for standard QIBs (up to $1,000,000 lifetime); 30% for women- or minority-owned QIBs (up to $1,500,000)
- 20% credit for investments in a Qualified Indiana Investment Fund (up to $5,000,000 per calendar year)
- Credit assignment requires a minimum of $10,000 in credit and must be in exchange for currency
How to apply
-
1
Business obtains QIB certification
The Indiana company applies to and is certified by the IEDC as a Qualified Indiana Business (or a fund is certified as a Qualified Indiana Investment Fund).
~4 hrs
-
2
Investor submits a capital investment application
Before investing, the investor files a capital investment application with the IEDC and obtains approval of the investment plan.
~3 hrs
-
3
Make the qualifying investment
The investor makes the approved investment within two years of IEDC approval and submits supporting documentation for the investment to be certified.
~2 hrs
-
4
Claim or assign the credit
The investor claims the non-refundable credit on the Indiana tax return (carrying forward unused amounts up to five years) or assigns/sells the credit to another taxpayer for currency (minimum $10,000 per assignment).
~2 hrs
Sequence matters: the company must be certified as a QIB and the investor's capital investment application must be approved BEFORE the money moves — investments made first do not qualify. The credit is assignable, so an out-of-state or low-liability investor can still capture value by selling the credit (minimum $10,000 block) to an Indiana taxpayer. Women- and minority-owned QIBs unlock the higher 30% rate and the $1.5M lifetime cap.
Deadline & timing
Both certification of the Qualified Indiana Business and approval of the investor's capital investment application must occur before the investment is made. The investment must be made within two years after the IEDC approves the investment plan. Credits are awarded against a $20 million annual statewide cap.
Programs that stack well
Related programs
Explore more funding
Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.