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PROPERTY TAX ABATEMENT Property Tax Abatement is authorized under Indiana Code 6-1.1-12.1 in the form of deductions from assessed valuation. Any property owner in a locally designated Economic Revitalization Area who makes improvements to the real property or installs new manufacturing equipment is eligible for property tax abatement. Land does not qualify for abatement. Used manufacturing equipment can also qualify as long as such equipment is new to the state of Indiana. Equipment not used in direct production, such as office equipment or distribution equipment, does not qualify for abatement.
The tax abatement can be granted on a one to ten year declining (prescribed) percentage schedule on real property improvements such as buildings.
Personal property tax abatement is provided on a declining (prescribed) percentage schedule of the assessed value of the newly installed manufacturing equipment, based on a one to ten year time period.
Also, since July 1, 2000, tax abatement changes now allow local units of government to grant tax abatement on research and development equipment from 1 to 10 years.
Legislation is being considered in the current session of the state legislature to amend the laws governing tax abatement to permit abatement on distribution equipment and information technology equipment.
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