West Central Indiana, in partnership with the State of Indiana, offer a variety of incentive programs for new and expanding businesses in our region. The scope of project incentives is based on number and type of new jobs created or retained in Indiana, and new capital investment made in the community.
Property Tax Abatement
Real property tax abatement is a declining percentage of the increase in assessed value of real property improvements based upon one of ten time periods and percentages. Land does not qualify for abatement. Depreciable personal property abatement is a declining percentage of the assessed value of newly-installed manufacturing equipment, based upon one of ten time periods and percentages. Used manufacturing equipment can also qualify for abatement as long as the equipment is new to the state of Indiana.
Tax Increment Financing Assistance (TIF)
Tax increment is the property tax revenues collected on the increased assessed valuation of real or personal property in an area being developed or redevelopment. Tax increment may also include property tax revenues collected on the increased assessed valuation of depreciable personal property of any designated taxpayer in an area being developed or redeveloped and all other depreciable personal property located and taxable on the designated taxpayer's site of operations in the area being developed or redeveloped.
Tax increment revenues may be used to pay the principal and interest on any bonds issued for the purpose of financing or refinancing the redevelopment or economic development of the allocation area; establish, augment or restore the debt service reserve for bonds; pay principal and interest on bonds issued by the unit to pay for local public improvements in or serving the allocation area; make payments on leases in the allocation area and provide funding for numerous other initiatives as defined by statute.
Personal Property Tax Exemption for Enterprise IT Equipment (Data Centers)
This local incentive specifies that enterprise information technology equipment purchased after June 30, 2009, by an eligible business or its transferee is exempt from personal property taxation for a period agreed to by a local designating body.
The law defines enterprise information technology equipment as:
- Hardware supporting computing, networking, or data storage function, including servers and routers;
- Networking systems having an industry designation as equipment within the "enterprise" or "data center" class of networking systems that support the computing, networking, or data storage functions; and
- Generators and other equipment used to ensure an uninterrupted power supply to such hardware and networking systems.
The equipment cannot include computer hardware designed for single user, workstation, or departmental level use.
The law defines an eligible business as an entity that meets the following requirements:
- The entity is engaged in a business that operates one or more facilities dedicated to computing, networking, or data storage activities;
- The entity is located in a facility or data center in Indiana;
- The entity invests in the aggregate at least $10,000,000 in personal property and real property in Indiana after June 30, 2009; and
- The average employee wage of the entity is at least 125% of the county average wage for each county in which the entity conducts business operations.
Tax-exempt bonds provide capital financing at lower rates than most conventional financing sources. Interest rates and terms are negotiated. Bonds are issued through loan, lease, or sale agreements. The bonds can finance facilities for manufacturing and certain other projects. Volume cap is the amount of tax-exempt financing for certain types of private companies allowed in a state in a calendar year. A company must obtain an award of volume cap before it can have tax-exempt bonds issued for its project.
Certified Technology Park
Indiana Economic Development Corporation's Certified Technology Park program encourages the location of high-technology businesses within areas identified by local redevelopment commissions. In Terre Haute, the Rose-Hulman Institute of Technology South Campus was designated as a Certified Technology Park in 2004. Portions of tax revenues generated by tenants are reinvested into the park and used for improvements, operation and maintenance of facilities, payment of interest and principal on bonds and other business-generating activities.