Indiana ranked first in the nation for cost of doing business, as well as eighth for its economy, in the recent CNBC “America’s Top States for Business 2015” scorecard.
“In a world where competition for job creation is tougher than ever, Indiana stands as the number one state for business affordability,” said Governor Mike Pence. “Businesses choose Indiana because growing here means focusing on job creation and investment, not taxes, regulation or other job-killing expenses. Today Indiana is on the cusp of reaching a historic peak employment level because companies grow here with confidence, making the Hoosier economy one of the strongest in the nation.”
According to CNBC, cost of doing business scores are based on each state’s tax climate, state-sponsored incentives and utility and rental costs. Economy rankings consider economic growth, job creation, consumer spending, major corporation headquarters and the residential real estate market. In addition, the economic ranking serves as a measure of each state’s fiscal health based on credit ratings and outlook, state revenues and budget projections.
Indiana’s personal tax rate is scheduled to reduce to 3.23 percent by 2017, with the 2013 passage of largest tax decrease in state history. In 2014, Governor Pence signed legislation also placing Indiana’s corporate tax on a reduction schedule, which is decreasing to 4.9 percent by 2021. Combined with Indiana’s AAA credit rating from all three major credit rating agencies, Indiana’s economy stands out around the world as a stable and affordable choice for business.
This news comes on the heels of Indiana’s recent recognition as the top state in the Midwest and sixth nationwide for doing business by Chief Executive magazine. Last year, Indiana was ranked best in the Midwest and 7th overall in Area Development magazine’s “Top States for Doing Business” as well as best in the Midwest and 7th in the nation in the Pollina Corporate “Top 10 Pro-Business States for 2014” study.
The organization’s rankings are based on publicly available data and cover more than 60 measures of competitiveness identified by a broad array of business and policy experts, official government sources, the CNBC Global CFO Council and the states themselves. The Hoosier State also earned top 10 rankings for cost of living (No. 4) and business friendliness (No. 9). The full survey results are available online.