Tax Phase-in

Real Property Tax Phase-In

New buildings constructed are eligible for real property tax abatement.  Substantial improvements to existing buildings may be eligible, but it is important to note that only the value of the improvement to the existing building qualifies.  It is not permissible to abate property that is already being taxed in Indiana.  Land does not qualify for phase-in.

Real property tax phase-in is a declining percentage of the increase in assessed value of the improvement based on one of the following ten time periods.  For example, for a five-year phase-in, the tax payer pays no tax in year one, 20% of the total tax in year two, 30% of the total tax in year three, etc.  The local governing body determines the time period for the 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.

	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%

Contacts for Tax Phase-In

Community	Tax Phase-in	Primary Contact	Application Fees
Elkhart County, Unincorporated Millersburg New Paris	Yes	EDC of Elkhart County 102 West Lincoln Avenue, Suite 210, Goshen, IN 46526 Telephone: 574.535.1002 Email: edc@elkhartcountybiz.com	$1,000/each
Town of Bristol	Yes	EDC of Elkhart County 102 West Lincoln Avenue, Suite 210, Goshen, IN 46526 Telephone: 574.535.1002 Email: edc@elkhartcountybiz.com	$750/each
City of Elkhart	Yes	Barkley Garrett, Director Economic Development 229 South Second Street, Elkhart, IN 46516 Telephone: 574.294.5471, ext. 109 Email: barkley.garrett@coei.org	$500 / each $750 / both
City of Goshen	Yes	Mark Brinson, Director of Community Development 204 East Jefferson Street, Suite 2, Goshen, IN 46528 Telephone: 574.537.3824 Email: markbrinson@goshencity.com	$1,000 / each$1,500 / both
Town of Middlebury	Yes	Mark Salee, Town Manager 418 North Main Street, PO Box 812, Middlebury, IN 46540 Telephone: 574.825.1499 Email: townmanager@middleburyin.com	$25 / each
Town of Millersburg	Yes*	EDC of Elkhart County 102 West Lincoln Avenue, Suite 210, Goshen, IN 46526 Telephone: 574.535.1002 Email: edc@elkhartcountybiz.com	None
New Paris (unincorporated)	Yes*	EDC of Elkhart County 102 West Lincoln Avenue, Suite 210, Goshen, IN 46526 Telephone: 574.535.1002 Email: edc@elkhartcountybiz.com	None
City of Nappanee	Yes	The Honorable Larry Thompson Mayor of Nappanee Post Office Box 29, Nappanee, IN 46550 Telephone: 574.773.2112 Email: nappcity@yahoo.com	$500 / each
Town of Wakarusa	Yes*	EDC of Elkhart County 102 West Lincoln Avenue, Suite 210, Goshen, IN 46526 Telephone: 574.535.1002 Email: edc@elkhartcountybiz.com	None