Tax Abatements

Category: Local Incentives

A tax abatement is a reduction in taxes on new capital investments that increase property value. It applies to improvements/investment in real property and/or eligible personal property and are used as an incentive to retain and expand existing businesses, attract new business, and to catalyze or revitalize distressed geographic areas.

Companies may qualify for abatements of up to 10 years  based upon factors like investment amount, job creation, and wage rates, aiming to retain and attract businesses and revitalize areas.

Definitions (per the State of Indiana)

Real Property Abatement - A property tax deduction from the assessed valuation granted for the construction of a new structure or a rehabilitation of property (i.e. facility expansion, structural repairs or improvements, etc.) Can NOT be used to pay for land or building purchases/lease payments.

Personal Property Abatement - A property tax deduction from the assessed valuation granted for the installation of qualifying abatable equipment (i.e. manufacturing equipment, IT equipment, logistical equipment) Can NOT be used for office furnishings unrelated to the manufacturing/development/logistical process. Can NOT be used for vehicle purchases. ***As of July 1, 2025, any company with a total personal property assessed value of $2M or less will no longer have to pay taxes on that property.

NOTE: Tax abatements are only applicable to assessed values not already taxed.

Tax Abatement Process

Depending on the municipal jurisdiction of the project, the abatement request process differs slightly. Click the links below to download the checklists for each municipality.

Compliance Process

In order to remain within compliance and receive your abatement your company will be required to report back annually to the approving body to ensure the project has reached its various benchmarks.

  1. Complete and sign the appropriate Compliance (CF-1) form. Click form name to download.
    1. CF-1 PP (Personal Property) Form
    2. CF-1 RP (Real Property) Form
  2. Submit to the governing body that previously approved the abatement.
  3. Attend the compliance meeting to provide updates on the project.