Tax Incentives

Real Property Tax Phase-In

Personal Property Tax Phase-In

Manufacturing and research & development equipment that is new to Indiana is eligible for personal property tax phase-in. It is not permissible to abate property that is already being taxed in Indiana.

Personal property tax phase-in is a declining percentage of the assessed value of the newly installed manufacturing and / or research and development equipment. Taxes are phased in as described below.

 

		Personal Property Tax - Term of the Phase-In
		1 Year	2 Years	3 Years	4 Years	5 Years	6 Years	7 Years	8 Years	9 Years	10 Years
	Year 1	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%
	Year 2		50%	66%	75%	80%	85%	85%	88%	88%	90%
	Year 3			33%	50%	60%	66%	71%	75%	77%	80%
	Year 4				25%	40%	50%	57%	63%	66%	70%
	Year 5					20%	34%	43%	50%	55%	60%
	Year 6						17%	29%	38%	44%	50%
	Year 7							14%	25%	33%	40%
	Year 8								13%	22%	30%
	Year 9									11%	20%
	Year 10										10%

Tax Phase-in: Real Property and Personal Property

Tax Phase-In: Process / Timeline

 

Community	Process	Timeline
Elkhart County	1. Preliminary meeting with County officials.	90 days
	2. Company completes County Application and Required Forms.
	3. County officials review and score application two weeks prior to next County Council meeting.
	4. Company makes presentation at County Council meeting.
	5. Council votes to approve, deny, or hold.
Town of Bristol	N / A	N / A
City of Elkhart	1. Preliminary meeting with Barkley Garrett.	45 days
	2. Company submits application fee, City Application and Required Forms.
	3. City administration reviews and scores application to determine if project qualifies and if so, for what period of time (3, 5, 7, or 10 years).
	4. City administration prepares necessary documentation presented to Common Council.  Council approval is a two-step process, occurring at two separate Council meetings attended by Company.
	5. At the first meeting, the Council votes to approve or deny the Declaratory Resolution.
	6. At the second meeting, the Council votes to approve or deny the Confirming Resolution.  Company and Council sign a Memorandum of Agreement.
	5. Upon project completion, Company files ERA 322 / RE form with the County Auditor.
	6. Company submits a Compliance with Statement of Benefits
	(CF-1) each year the tax deduction is claimed.  Council reviews and determines if Company is in compliance.
City of Goshen	1. Preliminary meeting with Mark Brinson.	45 days
	2. Company submits application fee, City Application and Required Forms.
	3. City administration reviews and forwards recommendation to the Goshen Common Council.
	4. Council passes a declaratory resolution designating the area as an Economic Revitalization Area (ERA).  Resolution designates the period of time the ERA will be in effect, one to ten years.
	5. City files declaratory resolution with the Elkhart County Assessor and publishes a notice of adoption of the declaratory resolution and notice of public hearing.  Notice is filed with all affected taxing units.
	6. At least ten days after the publication and filing of the notice, at the next regularly scheduled Common Council meeting date; the Council holds a public hearing.
	7. Council confirms, modifies and confirms or rescinds the previously adopted declaratory resolution.
	8. Confirmatory resolution is passed to confirm the ERA designation.
	9. Adopted confirmatory resolution filed with the Elkhart County Auditor's Office.
	10. Each year by February 28, the owner / taxpayer must file with the City of Goshen an annual report for the previous calendar year along with a completed Compliance with Statement of Benefits form.
	11.  Owner / taxpayer files a certified deduction application with the Elkhart County Auditor's Office each year during the period the ERA is in effect in order to receive the deduction.  A copy of the confirmatory resolution, statement of benefits form, and the compliance with statement of benefits form submitted with the annual application for deduction.
Town of Middlebury	1. Preliminary meeting with Mark Salee.	60 days
	2. Company completes Procedure (outlined in Section 1. of Resolution No. 2002-02) and Required Forms.
	3. Staff reviews and determines recommendation to Town Council.
	4. Town Council votes to adopt a declaratory resolution.
	5. Town Clerk-Treasurer files declaratory resolution with the Elkhart County Assessor.
	6. Public hearing conducted.  At public hearing, Town Council will confirm, modify and confirm, or rescind its previous resolution.
	7. If aggrieved with the Council’s decision, Company may within ten (10) days after public hearing file an appeal in either the Elkhart Circuit or Superior Courts.
	8. Annually, Company provides the Elkhart County Auditor and the Town Council with information showing the extent to which there has been compliance with the statement of benefits (Form CF-1).
Town of Millersburg*	1. Preliminary meeting with EDC of Elkhart County.	90 days
	2. Company completes County Application and Required Forms.
	3. County officials review application two weeks prior to next County Council meeting.
	4. Company makes presentation at County Council meeting.
	5. Council votes to approve, deny, or hold.
New Paris*	1. Preliminary meeting with EDC of Elkhart County.	90 days
	2. Company completes County Application and Required Forms.
	3. County officials review application two weeks prior to next County Council meeting.
	4. Company makes presentation at County Council meeting.
	5. Council votes to approve, deny, or hold.
City of Nappanee	1. Preliminary meeting with Larry Thompson.	45 days
	2. Company submits application fee, Application for Tax Abatement, Required Forms, and Letter of Agreement.
	3.  City administration prepares necessary documentation presented to Common Council.  Council approval is a two-step process, occurring at two separate Council meetings attended by Company.
	4.  At the first meeting, the Council votes to approve or deny the Declaratory Resolution.
	5.  Public hearing conducted.  At Public hearing, Council votes to approve or deny the Confirming Resolution.
	6.  Upon project completion, Company files ERA 322 / RE form with the County Auditor.
	7.  Company submits a Compliance with Statement of Benefits (CF-1) each year the tax deduction is claimed with the Elkhart County Auditor and the Council.  Council reviews and determines if Company is in compliance.
Town of Wakarusa	1. Preliminary meeting with Tom Roeder and County officials.	60 days
	2. Company completes County Application and Required Forms.
	3. County officials review application two weeks prior to next County Council meeting.
	4. Company makes presentation at County Council meeting.
	5. Council votes to approve, deny, or hold.
*Communities follow Elkhart County process and timeline

 Tax Phase-in: Required Forms : Communities 

Tax Credits

Economic Development for a Growing Economy Tax Credit (EDGE)
Program rewards companies creating new jobs and contributing to the growth of Indiana income.

Hoosier Business Investment Tax Credit (HBITC)
Program encourages capital investment in Indiana by providing a credit against a company’s Indiana tax liability.

Venture Capital Tax Credit (VCI)
Program improves access to capital for fast growing Indiana companies by providing individual and corporate investors an additional incentive to invest in early stage firms.

Industrial Recovery Tax Credit
Provides an incentive for companies to invest in facilities requiring significant rehabilitation or remodeling expense.

Source: Indiana Economic Development Corporation
 

Tax and Tax Credit publications by the Indiana Economic Development Corporation