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219-866-4930
115 W Washington St
Rensselaer, IN 47978
Tax Incentives
Incentive programs are offered to both existing businesses and businesses new to Jasper County. Some programs are authorized by state law and administered by the local government such as tax abatement and industrial revenue bonds. The state of Indiana, through the Indiana Department of Commerce (IDOC), has programs it administers such as Training 2000 and the Industrial Development Grant Fund. Due to the decreasing incentives from the State and federal governments, Jasper County is developing its own programs to encourage industrial development.
Industrial Revenue Bonds
Industrial Revenue Bonds and Economic Development Bonds provide a financing method for economic development projects. Bonds can be issued by the County Council which then loans the proceeds to a private company. The company issues a promissory note and the bonds are payable from the payment on the note only. The issuer, the County Council, has no liability.
There are state laws and procedures, as well as federal laws that must be followed for the bonds to qualify as tax-exempt. The applicant must hire its own bond attorney to provide representation through the approval process.
The use of bonds has decreased in recent years due to low interest rates and readily available private financing which make tax-exempt financing less attractive. However, it is still advantageous for some projects. Those interested in exploring this financing method are urged to first seek the advice of a financial consultant or bond counsel to determine its suitability for the particular project.
Other Local Incentive Programs
Jasper County has worked in recent years to develop its own incentive programs to encourage industrial development. One, the Tax Abatement Development Fund, is being capitalized with voluntary contributions from some tax abatement recipients. Additional information can be obtained by contacting the Jasper County Economic Development at 219-866-3080.
Tax Abatement
In Indiana, tax abatement is technically referred to as an economic revitalization area (ERA) deduction. The process begins with the designation of a certain piece of real estate as an ERA. Subsequent investment on that real estate, within state guidelines, is then eligible for tax abatement. Two types of property can receive tax abatement - real and personal.
Regarding real property, land cannot qualify only a structure or building. Abatement is only for the increase in assessed value. It does not apply to the value of existing structures. Activities eligible for abatement include the construction of new structures, additions on existing structures, and the remodeling or repair of a structure. Deductions for real property can be approved for a period of three, five, seven, or ten years in Jasper County. During the abatement period new taxes are phased in. Only in the first year is 100% of the increase in assessed value abated.
Personal property abatements are for equipment or machinery used for the production, manufacture, fabrication, assembly, or processing of other personal property, as well as research and development purposes. Used equipment can qualify for abatement if not previously taxed in Indiana. Deductions for personal property can be for a period of three, five, seven, or ten years in Allen County. Like the real property abatement, new taxes are phased in during the abatement period.
The Jasper County economic development staff uses a point system to objectively evaluate applications for ERA designation and determine a recommendation for the abatement period. The Jasper County Council or appropriate fiscal body makes the final determination.
Company representatives interested in applying for ERA designation are encouraged to contact the economic development staff to discuss their project and determine its eligibility. An application is available online; however, the company should verify eligibility with staff before applying. In addition, staff will provide information on the approval process and the meeting schedule for the appropriate fiscal body.