Incentives
Noble County and its towns and cities join the State of Indiana in offering incentives to encourage new business expansions, to retain existing jobs, attract new businesses, and support entrepreneurs. Several Tax Increment Finance (TIF) Districts exist across the county, enabling continuous re-investment in infrastructure and improvements necessary to sustain and thrive.
Noble County is rare among local economic development organizations for the creation of the Investment Trust Fund (ITF), which allows the investment of County Economic Development Income Tax (CEDIT) dollars into projects that support the mission to ensure a thriving economy.
Our team will assist you every step of the way through the process.
Tax Abatement
What is Tax Abatement?
Tax Abatement is a tax reduction on an increase in assessed value that results from a new capital investment. This “tax break” may be applied for investments made to improve (and increase the value of) real property and/or eligible personal property. Tax abatements are reviewed and must be approved by a local tax authority such as a town council, city council, or county council.
Tax Abatements may be approved for a period of up to ten years. The amount and duration of tax savings are determined by a number of factors including the amount of new investment and projected increase in assessed values, number of jobs retained or added as a result of new investments, and overall wage rates offered by the employer seeking an abatement.
Tax abatements are an incentive meant to retain and expand existing businesses, attract new business, and to catalyze or revitalize distressed geographic areas. Tax abatements are only applicable to assessed values not already taxed (new construction, real property improvements, new equipment).
What projects are eligible?
Real Property, meaning a building or structure and the following personal property may be considered for Tax Abatement: new manufacturing equipment; new research and development equipment; new logistical distribution equipment; and/or new information technology equipment. An eligible vacant building that is zoned for commercial or industrial use and has been unoccupied for at least one year may also be eligible for tax abatement. Some multi-family dwellings may also be eligible.
Projects that are not eligible include equipment not used in manufacturing (office furniture, warehouse equipment, etc.); equipment that was acquired prior to application (without a waiver); research and development equipment used for surveys, studies, advertising, promotion, history, and other similar purposes; land; inventory; most retail facilities; single family homes; most private/commercial non-industrial structures.
What you need to know before applying
The project site must be located in an area designated as an Economic Revitalization Area (ERA). The EDC Team will assist local applicants to confirm which commission or designating body (council) may consider an application for Tax Abatement.
Unless a special waiver is applied for and approved, no construction work should begin (do not break ground) and no equipment received (do not accept delivery) prior to application for Tax Abatement. It is advisable to allow at least 60 days to complete the Tax Abatement application process before beginning a project, because:
- Upon receipt of the questionnaire, the EDC will prepare a Form SB 1 and request time on the appropriate commission or council next meeting agenda. A representative from the EDC and for the taxpayer should plan to attend.
- Two meetings must be held following the submission of an SB 1 application. The first meeting following application will be to enable the appropriate commission or council to approve a Declaratory Resolution. A second meeting is held to approve a Confirming Resolution. These meetings may need to occur as many as four weeks apart, depending upon the normal meeting schedule of the commission or council.
- The commission or council must review the “benefits” of approving the requested abatement to determine if a deduction should be allowed based on findings.
- Findings will include: a determination if the estimated value of redevelopment or rehabilitation is reasonable for projects of that nature; if reasonable expectation exists for jobs and/or wages to be retained or increased as a result of the project; if the total of all benefits are sufficient to justify the deduction.
- If approved on the merits, the commission or council will determine the length of time to allow for abatement and may place restrictions.
The team at the EDC will assist the taxpayer following approval of a Tax Abatement with filing an Application for Deduction of Structures in Economic Revitalization Area (Form 322 ERA/PP) as required. If the abatement is for personal property, the EDC will remind the taxpayer and assist as needed to file form CF-1 once each year as required to confirm compliance with the Tax Abatement approved.
