Washington County Government uses tax abatement as a tool for expanding our local economy. Tax abatement encourages new investment in our community and helps maintain and increase employment in the community. Tax abatement is also a tool used to encourage redevelopment of deteriorated areas, and/or stimulate investment in specific areas of a community. Tax abatement is one of the primary incentives available to local government to promote economic development.
Who is eligible for tax abatement?
Property owners in Economic Revitalization Areas (ERA) are eligible for tax abatements. To qualify, owners must make improvements to real property, install new manufacturing equipment, logistical equipment, or equipment used in research and development activities devoted directly and exclusively to experimental or laboratory research and development. Tenants in leased facilities can benefit from tax abatement on real property; too, if the property owner applies for the abatement and all other requirements are met. Also, tenants can benefit from abatements on manufacturing equipment, logistical equipment, information technology equipment, information technology equipment and/or research and development equipment.
How does tax abatement work?
Property taxes are phased in based on the increased assessed value that results from a new investment. Due to tax abatement, property taxes cannot be lower than the prior year's taxes. The phase-in period is determined by the local governmental body (designating body) within the framework of the schedules listed in the Indiana State Statute (IC 6-1.1-12.1).
- New real estate investment options can have abatement terms from one to a maximum of ten years.
- New manufacturing equipment, logistical equipment, informational technology equipment and/or research and development equipment options can have abatement terms from one to a maximum of ten years.