American College of Education, an online academic institution that offers graduate degrees targeted toward working educators, announced Tuesday morning that it is relocating its main campus from Chicago to Indianapolis and will create up to 40 jobs by 2014.

Hiring of professors and academic, administrative and support personnel will begin once the move is complete in August. In addition, many of the college’s current staff will relocate to the city, it said.

The college will invest $1.2 million to establish its new headquarters in 12,000 square feet of space at 161 W. Ohio St. in downtown Indianapolis.

The Indiana Economic Development Corp. offered the college up to $400,000 in performance-based tax credits based on the company’s job-creation plans.

American College of Education was established in 2005, but its roots date back to 1858 as part of Barat College of the Sacred Heart, originally an academy for women in Chicago. Barat became part of the DePaul University system in 2001 before going independent in 2005 as American College of Education.    

The school offers master’s degree programs in educational leadership, curriculum and instruction, educational technology, bilingual education, reading, math and science.The college also offers professional development courses.