Indiana ranks 15th top state for business

INDIANAPOLIS (WISH) - A new study from USA Today puts Indiana at 15th on the list for Best States for Business. The annual ranking evaluates states on 10 criteria including the cost to do business, the economy and quality of life.

Indiana performed better than our neighbors Illinois and Ohio, which ranked 22nd and 23rd, respectively.

"I think the ranking is probably accurately, and Indiana deserves to be in the top third,” said John Ketzenberger, president of the Indiana Fiscal Policy Institute – the state’s only independent statewide source of continuing research into the impact of state taxing and spending policies in Indiana.

“Indiana's cost to do business is relatively low. Indiana's tax structure, especially when it comes to business, is very favorable. The Legislature just this year has implemented a law that will cut the corporate tax up to 25 percent over the next four years,” Ketzenberger said.

The positive perception of Indiana helped move the state up six spots on the list. In 2010, Indiana ranked 21st. This year, it ranks 15th.

Here are the 10 categories, and where Indiana ranked:

Cost of doing business (Indiana = 8th)

This category addressed tax burden, including individual income and property taxes, as well as business taxes, particularly as they apply to new investments. It also addressed utility costs and the cost of wages.

 

Business friendliness (Indiana = 10th)

This category dealt with the perceived “friendliness” of each state’s legal and regulatory frameworks to business.

 

Education (Indiana = 12th)

This category considered traditional measures of K-12 education including test scores, class size and spending. It also looked at the number of higher education institutions in each state.

 

Access to capital (Indiana =14th)

You can’t do business without money, and venture capital flows to some states more than others.

 

Cost of living (Indiana = 15th)

The cost of living helps drive the cost of doing business. From housing to food and energy, wages go further when the cost of living is low.

 

Infrastructure and Transportation (Indiana = 21st)

This study measured the vitality of each state’s transportation system by the value of goods shipped by air, land and water. Also important: the availability of air travel in each state, and the quality of the roads.

 

Technology and Innovation (Indiana = 22nd)

Researchers evaluated the states on their support for innovation, the number of patents issued to their residents, and the deployment of broadband services. They also considered federal health and science research grants to the states.

 

Economy (Indiana = 30th)

This category considered each state’s fiscal health by looking at projected budget gaps (or surpluses) for the coming fiscal year. States also received credit based on the number of major corporations located there.

 

Quality of Life (Indiana = 40th)

This category takes into account local attractions, the crime rate, health care, as well as air and water quality.

 

Workforce (Indiana = 41st)

This rating is based the education level of the workforce, as well as the numbers of available workers.