Jasper County, Indiana

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.