In Indiana, tax abatement is technically defined within state law as an economic revitalization area (ERA) deduction. The process begins by designating a certain piece of real estate as an ERA. Subsequent investment on that property, within state guidelines, is then eligible for tax abatement. Two types of investments can receive tax abatement - real estate and personal property improvements.
Regarding real property, the purchase of land does not qualify for a deduction; only a structure or building. Abatement is only for the increase in assessed value which means it cannot be applied to the value of existing structures. Activities eligible for abatement include the construction of new structures, additions to existing structures, and the remodel or repair of a structure that results in an increase in assessed value. Deductions for real property can be approved for a period up to ten years, during which, new taxes are phased in.
Personal property abatements are for equipment or machinery used for the production, manufacturing, fabrication, assembly, or processing of other personal property. In addition, equipment used for research and development, information technology systems and on site logistical equipment are eligible for abatement. Used equipment can qualify for abatement if not previously used and taxed in Indiana. Like the real property abatement, deductions for personal property can be granted for a period up to ten years.
The Allen County economic development staff uses a point system to objectively evaluate applications for ERA designation and determine a recommendation for the abatement period. The Allen County Council or appropriate fiscal body makes the final determination.
Through professional services agreements, the Allen County economic development staff administers the county's tax abatement program for the cities of New Haven and Woodburn, and the towns of Grabill, Huntertown, and Monroeville. The City of Fort Wayne has its own economic development staff that administers its tax abatement program within its corporate boundaries.
Company representatives interested in applying for ERA designation are encouraged to contact the economic development staff to discuss their project and determine its eligibility.
The City of Fort Wayne has its own separate policy and application for tax abatement. Please contact the Fort Wayne Community Development Division for that information at http://www.fwcommunitydevelopment.org/
Abatement filing information
In order to receive a Real property tax abatement, you must complete and submit the following Application for Deduction from Assessed Valuation of Structures in Economic Revitalization Areas, otherwise known as Form RE-322. This form must be completed for each year an improvement is made for which an abatement was approved. Please follow the instructions noted on the form and return the completed form to the Auditor's office. Please contact the Auditor's office with any questions or concerns. If this form is not completed and submitted before May 10th of the year after the improvements are made the Auditor's office cannot apply the abatement.
In addition to the initial filing required above, companies that receive a Real property tax abatement must also file a Compliance with Statement of Benefits Real Estate Improvements, otherwise known as Form CF-1 RE. This form must be filed annually before May 15th for the duration of the abatement. If you would like to complete and submit the form electronically online, please click the "Compliance with Statement of Benefits Real Estate Improvements Online Form". If you would like to complete a hard copy of the form please click on the "Compliance with Statement of Benefits Real Estate Improvements" link and return the completed form to the Auditor's office. Please contact the Auditor's office with any questions or concerns.
For Personal Property abatements, the initial filing will be completed on the Personal Property tax return that is submitted to the Allen County Assessor's office for the respected year the abatable personal property is put in service. The Compliance with Statement of Benefits Personal Property form, otherwise known as CF-1 PP, should be completed annually and submitted to the Allen County Assessor's office. If you would like to complete and submit the form electronically online, please click the "Compliance with Statement of Benefits Personal Property Online Form". If you would like to complete a hard copy of the form please click on the "Compliance with Statement of Benefits Personal Property" link.
For information regarding which Personal Property tax return should be completed to file for an abatement, please check with the Allen County Assessor's office.
Please click the following link for a DLGF presentation regarding abatements. DLGF Abatement Information