Indiana grants a 15% preference to small, independent businesses, as defined below, and gives all other local businesses a preference of 1-5%, depending on the size of the contract.
Indiana Code, Title 5, Article 22, Chapter 15, § 5-22-15-23
A preference of 15% is awarded to an Indiana small business. Small business is defined as a business that is independently owned and operated; is not dominant in its field of operation; and has the following criteria:
(1) A wholesale business is not a small business if its annual sales for its most recently completed fiscal year exceed $4,000,000.
(2) A construction business is not a small business if its average annual receipts for the preceding three fiscal years exceed $4,000,000.
(3) A retail business or business selling services is not a small business if its annual sales and receipts exceed $500,000.
(4) A manufacturing business is not a small business if it employs more than 100 persons. (Burns Indiana Code, §5-22-14-3)
Indiana Code Title 4, Article 13, Chapter 6 §2.7 (See IC5-15-20 below)
Preference for Indiana businesses with principal place of business located in Indiana, that pays a majority of its payroll (in dollar volume) to residents, and has a substantial positive economic impact on Indiana (c) There are the following price preferences for a contractor that is an Indiana business:
(1) Five percent (5%) for a contract expected by the division to be less than five hundred thousand dollars ($500,000).
(2) Three percent (3%) for a contract expected by the division to be at least five hundred thousand dollars ($500,000) but less than one million dollars ($1,000,000).
(3) One percent (1%) for a contract expected by the division to be at least one million dollars ($1,000,000).
The division shall award a contract to the lowest responsive and responsible contractor, regardless of the preference provided in this section, if:
(1) the contractor is an Indiana contractor; or
(2) the contractor is a contractor from a state bordering Indiana and the contractor’s home state
