Advanced Manufacturing Logistics Initiative Awareness Generate awareness of

Advanced Manufacturing/Logistics Initiative • Awareness: Generate awareness of initiative and goals. • Support: – Educate businesses and stakeholders regarding incentives and resources for Advanced Manufacturers. – Support workforce education and career development initiatives • Implementation: Deals, Jobs, Investment

25, 000 New Job Commitments 20, 000 15, 000 10, 000 5, 000 0 2003 9 2004 2005 2006 2007 2008 New Capital Investment (Billions) 8 • The average wage for new jobs committed in 2008 is $22. 47/hour – well above the State average of $18/hour. 7 6 5 4 3 2 1 0 2005 2006 2007 • Since its creation, the IEDC has worked with more than 590 businesses who have committed to create more than 78, 000 new jobs and invest more than $18. 7 B. 2008

Indiana Economic Facts Seasonally Adjusted Unemployment Rate (Oct. 2008): 6. 4% * Lowest unemployment rate of neighboring states, below national avg. * Illinois (7. 3%), Kentucky (6. 8%), Michigan (9. 3%), and Ohio (7. 3%) * National unemployment rate (Oct. 2008): 6. 5% Indiana in the International Economy * Exports from Indiana to foreign countries reached a record $25. 9 billion in 2007, up more than 14% percent over the previous year Commercializing Innovations * Through the 21 st Century Research and Technology fund, Indiana has committed to invest more than $77 million in 59 high-tech companies to help each bring their innovations to market, keeping the innovations and associated high wage jobs in Indiana. Recent Rankings Best Business Environment * Indiana ranks fifth in the nation and best in the Midwest for its business climate (Site Selection Magazine – Nov. 2008) * Indiana ranked first in the Midwest and eighth in the nation in Chief Executive magazine’s fourth annual "Best & Worst States" survey. Indiana was the highest ranked state outside of the sunbelt in the survey. Cost of Doing Business * Indiana has the lowest business cost index in the Midwest and sixth lowest in the country. (Forbes – July 2008) * Indiana ranks first in the Midwest in the Milken Institute’s most recent Cost of Doing Business Index - based on: wage cost, tax burden, electricity cost, industrial rent cost, and office rent cost. Top Tax Climate * Indiana ranks 1 st in the Midwest and 12 th nationally in the Tax Foundation’s 2008 Business Tax Climate Index In-Sourcing Jobs * Since 2005, international companies have committed more than $8 billion into their Indiana operations and more than 15, 800 new jobs * Indiana ranked number one per capita in North America in the creation of production jobs through foreign investment in 2007. (IBM 2008 study) More Jobs for Hoosiers 3 -Years of Record-Breaking Success * 622 business have committed to create 77, 650 jobs and invest $18. 7 Billion in their Indiana operations since Jan. 2005 2008 17, 956 new jobs committed and $4. 17 B capital investment 2007 22, 627 new jobs committed and $3. 38 B capital investment 2006 21, 995 new jobs committed and $8. 44 B capital investment 2005 15, 467 new jobs committed and $2. 75 B capital investment Increasing Hoosier Income * The average wage for new job commitments from competitive projects in 2008 is $22. 47/hour – well above the state average wage of $18/hour. Building the ‘Best Sandbox’ Major initiatives since 2005 aimed at improving Indiana’s competitiveness: * Major Moves –Ten-year fully funded $12 billion highway plan that includes more than 200 new construction and 200 major preservation projects * Telecommunications Reform - Indiana’s Telecommunications Deregulation Act has brought increased competition, leading to new investments and jobs * HQ Relocation Tax Credit – Reinforces the state’s commitment to attracting new headquarters opportunities to Indiana * Single Factor Sales Apportionment - Eliminates the tax penalty associated with companies adding jobs and investing in new capital equipment in Indiana * R&D Tax Credit – Provides a tax credit equal to 15% of a company’s first $1 million of qualifying R&D expenditures, giving Indiana one of the highest R&D tax credit percentages in the country * Patent Income Exemption - Exempts certain income derived from qualified patents from the calculation of a company’s tax liability * Buy Indiana – Pumps up to $1. 2 billion back into the Indiana economy by directing state agencies to purchase goods from Indiana businesses * Health Care Plan – Provides insurance for up to 130, 000 low-income Hoosiers annually and encourages Hoosiers to stop smoking Last Updated: Nov. 21, 2008

Indy Airport Expansion

R&D Benefits • Patent Tax Exemption – 50% State Income Tax Exemption. • Research Expense Credits – 15% of the first $1 million of R&D expense. • R & D Sales Tax Exemption – No sales tax on R&D equipment.

IEDC Incentives • Training Grants – Skills Enhancement Fund – TECH Grant – DWD TAG Grant • Tax Credits – Hiring – Capital Investment • Public Infrastructure Grants

Regional Economic Development Partnership Program • Encourage communities to think and act regionally. • Two or more counties. • Up to $150, 000, matching grant. • Wide range of economic development activities. • Must be consistent with IEDC strategic plan.

Indiana Logistics Rankings • 1 st in # Interstates • Shortest distance to the median center of US population. • 2 nd largest Fed-Ex hub. • 3 rd in local freight railroads. • 4 th in Class 1 railroads Source: Indiana Logistics Directory, Ports of Indiana, 2008. • 5 th in truck tonnage • 6 th in trucking employment • 7 th in NAFTA exports • 8 th in US waterborne shipping. • 9 th in rail tons carried • 10 th in freight rail employment.

Record Success, World-Class Infrastructure • Projects located in 76 counties • Nearly 80% within 10 miles of interstate • More than half from existing Indiana companies • Approx. half in cities/towns of < 25 K

Major Moves – Initiative • Fully funded 10 yr. , $12 Billion transportation plan. • FY ‘ 08 Plan is on track – +50 active projects • FY ‘ 09 – Hoosier Heartland, I-69, US 31 (K, SB) • Projects start sooner, end earlier, save millions.

Executives Rank Indiana Best in Midwest 1 st in the Midwest and 8 th nationally • Best Places for Business Survey • 605 top CEOs Source: Chief Executive Magazine, Jan. 2008

Contact Don Foley IEDC (317) 233 -3040 dofoley@iedc. in. gov www. iedc. in. gov