About Tax Abatements

Tax Abatement is a tax reduction on an increase in assessed value that results from a new capital investment. This “tax break” may be applied for investments made to improve (and increase the value of) real property and/or eligible personal property. Tax abatements are reviewed and must be approved by a local tax authority such as a town council, city council, or county council. 

Tax Abatements may be approved for a period of up to ten years. The amount and duration of tax savings are determined by a number of factors including the amount of new investment and projected increase in assessed values, number of jobs retained or added as a result of new investments, and overall wage rates offered by the employer seeking an abatement.

Tax abatements are an incentive meant to retain and expand existing businesses, attract new business, and to catalyze or revitalize distressed geographic areas. Tax abatements are only applicable to assessed values not already taxed (new construction, real property improvements, new equipment.)

Real Property, meaning a building or structure and the following personal property may be considered for Tax Abatement: new manufacturing equipment; new research and development equipment; new logistical distribution equipment; and/or new information technology equipment. An eligible vacant building that is zoned for commercial or industrial use and has been unoccupied for at least one year may also be eligible for tax abatement. Some multi-family dwellings may also be eligible.

Projects that are not eligible include equipment not used in manufacturing (office furniture, warehouse equipment, etc.); equipment that was acquired prior to application (without a waiver); research and development equipment used for surveys, studies, advertising, promotion, history, and other similar purposes; land; inventory; most retail facilities; single family homes; most private/commercial non-industrial structures. 

The project site must be located in an area designated as an Economic Revitalization Area (ERA). The EDC Team will assist local applicants to confirm which commission or designating body (council) may consider an application for Tax Abatement.

Unless a special waiver is applied for and approved, no construction work should begin (do not break ground) and no equipment received (do not accept delivery) prior to application for Tax Abatement. It is advisable to allow at least 60 days to complete the Tax Abatement application process before beginning a project, because:

• Upon receipt of the questionnaire, the EDC will prepare a Form SB 1 and request time on the appropriate commission or council next meeting agenda. A representative from the EDC and for the taxpayer should plan to attend.
  
  
• Two meetings must be held following the submission of an SB 1 application. The first meeting following application will be to enable the appropriate commission or council to approve a Declaratory Resolution. A second meeting is held to approve a Confirming Resolution. These meetings may need to occur as many as four weeks apart, depending upon the normal meeting schedule of the commission or council.
  
  
• The commission or council must review the “benefits” of approving the requested abatement to determine if a deduction should be allowed based on findings.
  
  
• Findings will include: a determination if the estimated value of redevelopment or rehabilitation is reasonable for projects of that nature; if reasonable expectation exists for jobs and/or wages to be retained or increased as a result of the project; if the total of all benefits are sufficient to justify the deduction. 
  
  
• If approved on the merits, the commission or council will determine the length of time to allow for abatement and may place restrictions.

The team at the EDC will assist the taxpayer following approval of a Tax Abatement with filing an Application for Deduction of Structures in Economic Revitalization Area (Form 322 ERA/PP) as required. If the abatement is for personal property, the EDC will remind the taxpayer and assist as needed to file form CF-1 once each year as required to confirm compliance with the Tax Abatement approved.

The team at the Noble County Economic Development (EDC) Corporation is available to help applicants file for Tax Abatement for property located in Noble County, Indiana. If you have a project you believe may be eligible the first step is to contact your EDC team.

We will prepare the necessary paperwork for the taxpayer, contact the proper taxing authority, and help set up necessary meetings to process your application for abatement. To get started, call us at (260) 636-3800 or email info@noblecountyedc.com. If you are familiar with this process you may jump right in by clicking the button below to begin filling out the pre-application questionnaire, or use the bottom link to download the same questionnaire in hard copy. The EDC will accept either version to begin the formal application process. 

STEP 2: Complete the appropriate Statement of Benefits (SB-1) Form (locate using the button below) sign, scan and email (or drop off) to the Noble County EDC. Alternatively, the EDC will assist in preparing the appropriate form for signature using the information provided in Step 1. The SB-1 form will accompany the abatement request submitted on your behalf to the appropriate taxing authority for consideration.

STEP 3: Once information has been compiled (from Steps 1 and 2) the EDC will submit the abatement request to the appropriate taxing authority and advise of public hearing dates, times, and places at which the abatement will be considered and/or voted upon. The taxpayer will need to ensure a representative is in attendance. The EDC will also have a representative in attendance.