Real Property Tax Abatement
Phase-in of real property tax obligation over one- to ten-year period.
How to Calculate:
Real property tax abatement 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 seven-year abatement, the taxpayer pays no tax in year one, 15% of the total tax in year two, 29% of the total tax in year three, etc. The local governing body, the City of Indianapolis’ Metropolitan Development Commission, determines the time period for the abatement.
|
Term of the Abatement
|
|
1
Year
|
2 Years
|
3
Years
|
4
Years
|
5
Years
|
6
Years
|
7
Years
|
8
Years
|
9
Years
|
10
Years
|
|
YR 1
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
|
YR 2
|
|
50%
|
66%
|
75%
|
80%
|
85%
|
85%
|
88%
|
88%
|
95%
|
|
YR 3
|
|
|
33%
|
50%
|
60%
|
66%
|
71%
|
75%
|
77%
|
80%
|
|
YR 4
|
|
|
|
25%
|
40%
|
50%
|
57%
|
63%
|
66%
|
65%
|
|
YR 5
|
|
|
|
|
20%
|
34%
|
43%
|
50%
|
55%
|
50%
|
|
YR 6
|
|
|
|
|
|
17%
|
29%
|
38%
|
44%
|
40%
|
|
YR 7
|
|
|
|
|
|
|
14%
|
25%
|
33%
|
30%
|
|
YR 8
|
|
|
|
|
|
|
|
13%
|
22%
|
20%
|
|
YR 9
|
|
|
|
|
|
|
|
|
11%
|
10%
|
|
YR 10
|
|
|
|
|
|
|
|
|
|
5%
|
Personal Property Tax Abatement
Manufacturing, research and development, information technology and logistics/distribution equipment phase-in of personal property (used directly in production, R&D, distribution processes) tax obligation over a one- to ten-year period.
How to Calculate:
Personal property tax abatement 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. The Metropolitan Development Commission determines the abatement period.
|
Term of the Abatement
|
|
1
Year
|
2 Years
|
3
Years
|
4
Years
|
5
Years
|
6
Years
|
7
Years
|
8
Years
|
9
Years
|
10
Years
|
|
YR 1
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
100%
|
|
YR 2
|
|
50%
|
66%
|
75%
|
80%
|
85%
|
85%
|
88%
|
88%
|
90%
|
|
YR 3
|
|
|
33%
|
50%
|
60%
|
66%
|
71%
|
75%
|
77%
|
80%
|
|
YR 4
|
|
|
|
25%
|
40%
|
50%
|
57%
|
63%
|
66%
|
70%
|
|
YR 5
|
|
|
|
|
20%
|
34%
|
43%
|
50%
|
55%
|
60%
|
|
YR 6
|
|
|
|
|
|
25%
|
29%
|
38%
|
44%
|
50%
|
|
YR 7
|
|
|
|
|
|
|
14%
|
25%
|
33%
|
40%
|
|
YR 8
|
|
|
|
|
|
|
|
13%
|
22%
|
30%
|
|
YR 9
|
|
|
|
|
|
|
|
|
11%
|
20%
|
|
YR 10
|
|
|
|
|
|
|
|
|
|
10%
|
Personal Property Tax Exemption
Renewable Energy Generation Systems that generate energy using solar, wind, hydropower or geothermal resources – including geothermal heat pumps – are exempt from property tax.
Vacant Building Tax Abatement
One- or two-year abatement based on the occupation of a qualifying vacant building. Must be used for commercial or industrial purposes. The real property tax deduction schedule is 100 percent property tax abatement the first year and 50 percent property tax abatement for the second year.
Financing Programs
There are several financing vehicles for companies to review on both a state and local level. Both taxable and tax exempt bonds, lease financing, Tax Increment Financing (TIF), SBA loans through CDCs, and various utility loan programs.