Elanco Animal Health will build a new $100 million global headquarters in Indiana on the site of a former GM stamping plant, reinforcing that economic development incentives are still alive and well. 

The new headquarters is part of a $300 million investment Elanco plans to make in Indiana, which will serve as the base for the company’s consolidated global operations, according to the Indy Star.

Indiana won the project and secured the company’s future in the state by offering a massive incentive package valued at up to $106 million over a 10-year period. Additionally, Indianapolis is promising to chip in up to $64 million in tax increment financing and assist with connectivity through vehicular and pedestrian bridges. That brings the combined package of city and state incentives up to as much as $170 million. 

The article reported that the deal includes a mix of different types of incentives:

  • Up to $21.75 million in conditional Economic Development For a Growing Economy tax credits. The IEDC says these credits are based on creation of up to 573 new, high-wage jobs by the end of 2030. 
  • Up to $51.25 million in conditional Economic Development For a Growing Economy Retention tax credits. These credits are based on the retention of 1,623 jobs across Indiana over a 10-year period. Retention tax credits are subject to review of the State Budge Committee
  • Up to $4 million in conditional training grants to support future workforce development.
  • The state will help support the relocation of employees to Indiana by offering up to $2,500 for each Bayer Animal Health employee (up to 573 employees) who move to the state. 
  • Up to $2 million in nonrefundable, conditional Hoosier Business Investment tax credits based on the planned capital investment at the new headquarters.
  • Up to $7 million in assignable Redevelopment Tax Credits, which incentivize companies to invest in the redevelopment of vacant properties to improve communities in Indiana. 
  • Up to $500,000 for headquarters relocation expenses.
  • Once the incentive contracts are finalized, the state will transfer ownership of the initial 45 acres to Elanco, a portion  valued at $12.6 million. The 20-acre restricted option is valued at $5.59 million. The company has two years to exercise the option.