§ 6-1.1-12.1-4.5 — Statement of benefits; findings by designating body; deduction periods, amounts, and limitations

Indiana § 6-1.1-12.1-4.5

• Jurisdiction: Indiana
• Art. 1.1: PROPERTY TAXES
• Ch. 12.1: Deduction for Rehabilitation or Redevelopment of

Text

5. (a) An applicant must provide a
statement of benefits to the designating body. The applicant must
provide the completed statement of benefits form to the designating
body before the hearing specified in section 2.5(c) of this chapter or
before the installation of the new manufacturing equipment, new farm
equipment, new research and development equipment, new logistical
distribution equipment, or new information technology equipment for
which the person desires to claim a deduction under this chapter. The
department of local government finance shall prescribe a form for the
statement of benefits. The statement of benefits must include the
following information:
(1) A description of the new manufacturing equipment, new farm
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment that the person proposes to acquire. A statement of
benefits for new farm equipment must describe each piece of new
farm equipment with sufficient detail to afford identification.
(2) With respect to:
(A) new manufacturing equipment not used to dispose of solid
waste or hazardous waste by converting the solid waste or
hazardous waste into energy or other useful products; and
(B) new farm equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment;
an estimate of the number of individuals who will be employed or
whose employment will be retained by the person as a result of
the installation of the new manufacturing equipment, new farm
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment and an estimate of the annual salaries of these
individuals.
(3) An estimate of the cost of the new manufacturing equipment,
new farm equipment, new research and development equipment,
new logistical distribution equipment, or new information
technology equipment.
(4) With respect to new manufacturing equipment used to dispose
of solid waste or hazardous waste by converting the solid waste
or hazardous waste into energy or other useful products, an
estimate of the amount of solid waste or hazardous waste that will
be converted into energy or other useful products by the new
manufacturing equipment.
The statement of benefits may be incorporated in a designation
application. Notwithstanding any other law, a statement of benefits is
a public record that may be inspected and copied under IC 5-14-3-3.
(b) The designating body must review the statement of benefits
required under subsection (a). The designating body shall determine
whether an area should be designated an economic revitalization area
or whether the deduction shall be allowed, based on (and after it has
made) the following findings:
(1) Whether the estimate of the cost of the new manufacturing
equipment, new farm equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment is reasonable for equipment of
that type.
(2) With respect to:
(A) new manufacturing equipment not used to dispose of solid
waste or hazardous waste by converting the solid waste or
hazardous waste into energy or other useful products; and
(B) new farm equipment, new research and development
equipment, new logistical distribution equipment, or new
information technology equipment;
whether the estimate of the number of individuals who will be
employed or whose employment will be retained can be
reasonably expected to result from the installation of the new
manufacturing equipment, new farm equipment, new research and
development equipment, new logistical distribution equipment, or
new information technology equipment.
(3) Whether the estimate of the annual salaries of those
individuals who will be employed or whose employment will be
retained can be reasonably expected to result from the proposed
installation of new manufacturing equipment, new farm
equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment.
(4) With respect to new manufacturing equipment used to dispose
of solid waste or hazardous waste by converting the solid waste
or hazardous waste into energy or other useful products, whether
the estimate of the amount of solid waste or hazardous waste that
will be converted into energy or other useful products can be
reasonably expected to result from the installation of the new
manufacturing equipment.
(5) Whether any other benefits about which information was
requested are benefits that can be reasonably expected to result
from the proposed installation of new manufacturing equipment,
new farm equipment, new research and development equipment,
new logistical distribution equipment, or new information
technology equipment.
(6) Whether the totality of benefits is sufficient to justify the
deduction.
The designating body may not designate an area an economic
revitalization area or approve the deduction unless it makes the
findings required by this subsection in the affirmative.
(c) Except as provided in subsection (f), and subject to subsection
(g) and section 15 of this chapter, an owner of new manufacturing
equipment, new farm equipment, new research and development
equipment, new logistical distribution equipment, or new information
technology equipment whose statement of benefits is approved is
entitled to a deduction from the assessed value of that equipment for
the number of years determined by the designating body under section
17 or 18 of this chapter. Except as provided in subsection (d) and in
section 2(i)(3) of this chapter, and subject to subsection (g) and section
15 of this chapter, the amount of the deduction that an owner is entitled
to for a particular year equals the product of:
(1) the assessed value of the new manufacturing equipment, new
farm equipment, new research and development equipment, new
logistical distribution equipment, or new information technology
equipment in the year of deduction under the abatement schedule
established under section 17 or 18 of this chapter; multiplied by
(2) the percentage prescribed by the designating body under
section 17 or 18 of this chapter.
(d) With respect to new manufacturing equipment and new research
and development equipment installed before March 2, 2001, the
deduction under this section is the amount that causes the net assessed
value of the property after the application of the deduction under this
section to equal the net assessed value after the application of the
deduction under this section that results from computing:
(1) the deduction under this section as in effect on March 1, 2001;
and
(2) the assessed value of the property under 50 IAC 4.2, as in
effect on March 1, 2001, or, in the case of property subject to IC 6-1.1-8, 50 IAC 5.1, as in effect on March 1, 2001.
(e) The designating body shall determine the number of years the
deduction is allowed under section 17 or 18 of this chapter. Except as
provided by section 18 of this chapter, the deduction may not be
allowed for more than ten (10) years. This determination shall be made:
(1) as part of the resolution adopted under section 2.5 of this
chapter; or
(2) by resolution adopted within sixty (60) days after receiving a
copy of a property owner's certified deduction application from
the county auditor. A certified copy of the resolution shall be sent
to the county auditor.
A determination about the number of years the deduction is allowed
that is made under subdivision (1) is final and may not be changed by
following the procedure under subdivision (2).
(f) The owner of new manufacturing equipment that is directly used
to dispose of hazardous waste is not entitled to the deduction provided
by this section for a particular assessment year if during that
assessment year the owner:
(1) is convicted of a criminal violation under IC 13, including IC 13-7-13-3 (repealed) or IC 13-7-13-4 (repealed); or
(2) is subject to an order or a consent decree with respect to
property located in Indiana based on a violation of a federal or
state rule, regulation, or statute governing the treatment, storage,
or disposal of hazardous wastes that had a major or moderate
potential for harm.
(g) For purposes of subsection (c), the assessed value of new
manufacturing equipment, new farm equipment, new research and
development equipment, new logistical distribution equipment, or new
information technology equipment that is part of an owner's assessable
depreciable personal property in a single taxing district subject to the
valuation limitation in IC 6-1.1-3-29 or IC 6-1.1-8-45 is the product of:
(1) the assessed value of the equipment determined without
regard to the valuation limitation in IC 6-1.1-3-29 or IC 6-1.1-8-45; multiplied by
(2) the quotient of:
(A) the amount of the valuation limitation determined under IC 6-1.1-3-29 or IC 6-1.1-8-45 for all of the owner's depreciable
personal property in the taxing district; divided by
(B) the total true tax value of all of the owner's depreciable
personal property in the taxing district that is subject to the
valuation limitation in IC 6-1.1-3-29 or IC 6-1.1-8-45
determined:
(i) under the depreciation schedules in the rules of the
department of local government finance before any
adjustment for abnormal obsolescence; and
(ii) without regard to the valuation limitation in IC 6-1.1-3-29
or IC 6-1.1-8-45.
As added by Acts 1981, P.L.72, SEC.3. Amended by
P.L.71-1983, SEC.5; P.L.82-1987, SEC.3; P.L.56-1988, SEC.6;
P.L.3-1989, SEC.37; P.L.56-1991, SEC.2; P.L.42-1992, SEC.3;
P.L.65-1993, SEC.5; P.L.25-1995, SEC.20; P.L.1-1996, SEC.40;
P.L.4-2000, SEC.6; P.L.178-2002, SEC.17; P.L.90-2002, SEC.120;
P.L.1-2003, SEC.22; P.L.245-2003, SEC.8; P.L.256-2003, SEC.3;
P.L.97-2004, SEC.20; P.L.64-2004, SEC.7 and P.L.81-2004, SEC.51;
P.L.154-2006, SEC.27; P.L.137-2007, SEC.3; P.L.219-2007, SEC.31;
P.L.3-2008, SEC.36; P.L.146-2008, SEC.122; P.L.173-2011, SEC.6;
P.L.6-2012, SEC.41; P.L.288-2013, SEC.10; P.L.80-2014, SEC.3;
P.L.8-2022, SEC.5; P.L.68-2025, SEC.53.