The Indianapolis 500 put the city of Indianapolis on the map nearly a decade ago. Millions of miles later, it's transportation and logistics that are getting attention.

Expansion of the Indianapolis International Airport has figured significantly in the region's growing prominence. FedEx's Indianapolis hub is one of the company's largest air cargo hubs in the country. Other hubs are located in Anchorage, Alaska; Dallas-Fort Worth, Texas; Oakland, California; and Newark, New Jersey. FedEx's newest air cargo hub will be located at the Piedmont Triad International Airport in North Carolina, and is scheduled to open in 2007.

According to the Indianapolis Regional Economic Development Partnership, the hub is a major support for racing teams that are based near the city. A large volume of auto parts and sometimes even whole cars are shipped through the FedEx hub.

INzone, the greater Indianapolis Foreign Trade Zone, is another feature important to the region's manufacturers and shippers. Foreign Trade Zones offer a number of advantages to an importer, including an opportunity to manipulate and modify goods before releasing them for consumption into the U.S. This allows the importer to defer payment of duties to U.S. Customs until release of the merchandise. Goods can also be re-exported to avoid payment of duties altogether.

Complementing the regions superior transportation and logistics services are a variety of attractive taxes and incentives. The Indianapolis Regional Economic Development offers the following summary:

Economic Development for a Growing Economy (EDGE). Economic Development for a Growing Economy (EDGE) tax credits are based on the added payroll for Indiana jobs created as a result of a project. The payroll taxes withheld from those new employees, effectively 3.1% in Indiana, are the basis for the credits. Tax credits can be awarded for a period of time not to exceed ten years. The credits awarded are first applied against any Indiana corporate income tax liability, and any excess amount earned is refunded directly to the company. Eligible projects are those with a competitive disparity in projects costs, including incentives and the cost of doing business, between an Indiana location and a competing state.

Training. This program provides financial assistance in the form of a grant for reimbursement of eligible training costs. Eligible uses include: basic skills training, transferable skills training, company specific skills and quality assurance training. This grant can reimburse up to 50 percent of eligible training costs. The maximum grant is $200,000. A company can reapply every two years. Companies apply through the Department of Commerce. A two-year training plan and applications will need to be submitted before an award is granted. Applications are available from the Department of Commerce after contact is established.

Industrial Development Grant Fund. This is a state-funded program that provides assistance to local units of government for off-site infrastructure projects in support of new business development. Eligible uses include: construction, extension, or completion of sanitary sewer lines, roads, streets, water lines, sidewalks, railroad spurs and fiber. The grant amount is determined based on project needs. This program is designed to supplement local funding sources. A business would need to apply through the Department of Commerce.

Tech Fund. The Indiana Department of Commerce in partnership with the Department of Workforce Development, created the Technology Enhancement Certifications for Hoosiers (TECH) Fund to help Indiana businesses train their existing information technology professionals. The maximum award to any one company is $50,000. It can be used for costs associated with a company's IT professionals in areas including: systems administration, systems engineering, and software development.

Advance Indiana. Advance Indiana is intended to address the needs of established Indiana companies. It is designed to promote lifelong learning opportunities for working Hoosiers. The training initiative develops the transferable skills of workers. It is available over a two-year period and must result in a portable credential for the employee participating in the training. Portable credentials sought by participants in current training projects include college degrees and advanced information technology certifications.

Property Tax Abatement. Any property owner who makes improvements to real property or installs new manufacturing or R&D equipment may apply for property tax abatement. Real property tax abatement is a declining percentage of the increase of assessed value of the improvement based on 1-10 years. Application is made through the local governing body. Two public meetings are required prior to final approval. The process can be completed in roughly 45 days. If a 10-year abatement is granted on real property, the tax savings over the period will be approximately 50 percent.

Favorable taxes and incentive programs are not the only draws to the city and region known as the "Crossroads of America," it is, in fact the roads themselves that are part of the appeal. Interstate 65 runs approximately 860 miles, from Chicago and the northwestern part of Indiana to Mobile, Alabama. The highway connects major cities and state capitals, as well as ports such as Burns Harbor in Northern Indiana on Lake Michigan; the Clark Maritime Center, located on the Ohio River across from Louisville; the Port of Decatur in the Tennessee River in Alabama; and the Port of Mobile, which is a gateway to South America and Mexico.

ConAgra Foods and the retailer Guitar Center are two companies that have positioned major distribution facilities in central Indiana, while other companies such as Eli Lilly, Rolls Royce, American United Life Insurance, and Roche Diagnostics also have a presence in the region.

In March, the world's largest manufacturer of agricultural tractors, Case New Holland, announced they would invest $28.7 million to build a new warehouse and distribution campus in the Lebanon, Indiana. The location, just northwest of Indianapolis, includes an 842,000 square foot national parts distribution center and a 250,000 square foot facility that will serve as the company's primary center for export parts for all international business.

A spokesman for the company says, "First class after-sales support is vitally important in our business. By locating in Lebanon, Case New Holland can leverage the superior transport capabilities of the Indianapolis area to deliver enhanced service levels to our dealers and customers."

The region is also home to key logistics providers such as Langham Transportation and GENCO Distribution Systems.

Sidebar: Indianapolis' Impressive Numbers

2000 Population: 607,486
Increase In Population From 1990 To 2000: 14.1%
2001 Annual Average Labor Force: 865,303
2001 Annual Average Unemployment Rate: 3.4%
Individual State Income Tax: 3.4%
Corporate Adjusted Gross Income Tax: 8.5%
Sales & Use Tax: 5.0% - 6.0% Effective 12/1/02
Median Home Price: $116,900