Tax abatement is offered by the local governmental taxing unit on real property and equipment. Real property can qualify for a three year, seven year or ten year abatement on new buildings and improvements or increases in assessed value on remodeled or renovated structures. Land does not qualify. Manufacturing equipment (new to the State of Indiana) qualifies for a deduction from assessed value over a ten year period. Equipment not used in direct production, such as office equipment, does not qualify. New real estate investments options can have abatement terms from one to a maximum of ten years.
Business Personal Property Taxes
Abatement for used equipment - local governing body may now grant tax abatement for property that was previously used in Indiana. The equipment must be acquired in an arm’s length transaction with an unaffiliated party.
Tax Incremental Financing
Bonds issued by a local municipality may be used to finance infrastructure improvements and new construction areas needing growth or rehabilitation. The infrastructure pays for itself through increased tax revenues (resulting from the property valuation increases) which are pledged for repayment of the bonds.
Tell City EDC Revolving Loan Fund
The City of Tell City offers a Revolving Loan Fund (RLF) program to assist with economic development. The program was initially funded by state and federal sources and has grown over the years through the recapture of loaned funds. Funds are available for business start-up, expansion or retention. The main goal of the loan program is job creation The loan program is restricted to businesses located in Perry County. The Revolving Loan Fund Board is comprised of members of the Tell City Economic Development Commission, City Council, elected officials, and local business representatives.
Applicants are encouraged to work with local financial institutions first and utilize the RLF as gap financing. Loan applications are reviewed on a case by case basis, with terms and re-payment being negotiated. Typical loans range from $5,000 to $150,000 with terms of 5 to 10 years.
For questions or to pick up an application, please contact Janice Hackbarth in the Mayor’s Office, City Hall, at 812.547.5511.
State incentive programs are administered by the Indiana Economic Development Corporation.
There are over 30 different types of incentives that are available to new and existing businesses in the state. In addition, there are close to 15 other funds and grants that can be of assistance to a company locating in Indiana.
Each local governmental entity with taxing authority also offers tax abatement incentives for new and expansion of existing businesses.
The individual project’s new job creation and value of new real property and equipment are important factors.
Various other programs are used including Tax Increment Financing (TIF) and participation with the state on their infrastructure program.