Economic Development Success Driven

Tax Abatements

Tax abatement is a tool used by local government to attract private investment and job creation by exempting all or a por­tion of the new or increased assessed value resulting from new investment from the property tax roll. Tax abatement can be granted on either real or personal property. Real property abatements can be granted for both new construction and rehabilitation, with the abatement limited to the increase in assessed value attributable to the new construction or reha­bilitation. Personal property tax abatements can be granted to any manufacturing equipment (new or used) that has not previously been taxed in Indiana. Personal property such as laboratory equipment and computers used in experimental research and development laboratories is also eligible for tax abatement.

Tax abatement can be granted for between 1 to 10 years. Only in year 1 is the total amount of new assessed value ex­empt from paying property tax. In each succeeding year, the share of the previously exempted assessed value that is tax­able increases.

Link for example abatement schedule