Tax Incentives
Real Property Tax Phase-In
New buildings constructed are eligible for real property tax abatement. Substantial improvements to existing buildings may be eligible, but it is important to note that only the value of the improvement to the existing building qualifies. It is not permissible to abate property that is already being taxed in Indiana. Land does not qualify for phase-in.
Real property tax phase-in is a declining
percentage of the increase in assessed value of the improvement
based on
one of the following ten time periods.
For example, for a five-year phase-in, the tax payer pays
no tax in year one, 20% of the total tax in year two, 30% of the
total tax in year three, etc.
The local governing body determines the time period for
the phase-in.
| Real Property Tax - Term of the Phase-In | |||||||||||
| 1 Year | 2 Years | 3 Years | 4 Years | 5 Years | 6 Years | 7 Years | 8 Years | 9 Years | 10 Years | ||
| Year 1 | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | |
| Year 2 | 50% | 66% | 75% | 80% | 85% | 85% | 88% | 88% | 95% | ||
| Year 3 | 33% | 50% | 60% | 66% | 71% | 75% | 77% | 80% | |||
| Year 4 | 25% | 40% | 50% | 57% | 63% | 66% | 65% | ||||
| Year 5 | 20% | 34% | 43% | 50% | 55% | 50% | |||||
| Year 6 | 17% | 29% | 38% | 44% | 40% | ||||||
| Year 7 | 14% | 25% | 33% | 30% | |||||||
| Year 8 | 13% | 22% | 20% | ||||||||
| Year 9 | 11% | 10% | |||||||||
| Year 10 | 5% | ||||||||||
Personal Property Tax Phase-In
Manufacturing and research & development equipment that is new to
Indiana is eligible for personal property tax phase-in. It is not
permissible to abate property that is already being taxed in Indiana.
Personal property tax phase-in is a declining percentage of the assessed
value of the newly installed manufacturing and / or research and
development equipment. Taxes are phased in as described below.
| Personal Property Tax - Term of the Phase-In | |||||||||||
| 1 Year | 2 Years | 3 Years | 4 Years | 5 Years | 6 Years | 7 Years | 8 Years | 9 Years | 10 Years | ||
| Year 1 | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | |
| Year 2 | 50% | 66% | 75% | 80% | 85% | 85% | 88% | 88% | 90% | ||
| Year 3 | 33% | 50% | 60% | 66% | 71% | 75% | 77% | 80% | |||
| Year 4 | 25% | 40% | 50% | 57% | 63% | 66% | 70% | ||||
| Year 5 | 20% | 34% | 43% | 50% | 55% | 60% | |||||
| Year 6 | 17% | 29% | 38% | 44% | 50% | ||||||
| Year 7 | 14% | 25% | 33% | 40% | |||||||
| Year 8 | 13% | 22% | 30% | ||||||||
| Year 9 | 11% | 20% | |||||||||
| Year 10 | 10% | ||||||||||
Tax Phase-in: Real Property and Personal Property
| Community | Tax | Primary Contact | Application |
| Phase-in | Fees | ||
| Elkhart County, Unincorporated | Yes | Laura Coyne, Community Development Manager | None |
| Millersburg | 4230 Elkhart Road, Goshen, IN 46526 | ||
| New Paris | Telephone: 574.875.3347 | ||
| Email: lcoyne@elkhartcounty.com | |||
| Town of Bristol | No | Bill Wuthrich, Town Manager | N / A |
| 303 East Vistula Street, PO Box 122, Bristol, IN 46507 | |||
| Telephone: 574.848.4853 | |||
| City of Elkhart | Yes | Brian Gildea, Economic Development Manager |