Ind. Code ch. 6-1.1-12.1

Ind. Code ch. 6-1.1-12.1
in effect

Ind. Code § 6-1.1-12.1-0.3 Legalization of designation of economic revitalization area before February 1, 1991

Sec. 0.3. Notwithstanding any other law, a designating body's actions taken before February 1, 1991, in retroactively designating an economic revitalization area are legalized and validated. As added by P.L.220-2011, SEC.121.

Ind. Code § 6-1.1-12.1-1 Definitions

Sec. 1. For purposes of this chapter: (1) "Economic revitalization area" means an area which is within the corporate limits of a city, town, or county which has become undesirable for, or impossible of, normal development and occupancy because of a lack of development, cessation of growth, deterioration of improvements or character of occupancy, age, obsolescence, substandard buildings, or other factors which have impaired values or prevent a normal development of property or use of property. The term "economic revitalization area" also includes: (A) any area where a facility or a group of facilities that are technologically, economically, or energy obsolete are located and where the obsolescence may lead to a decline in employment and tax revenues; (B) a residentially distressed area, except as otherwise provided in this chapter; and (C) an area of land classified as agricultural land for property tax purposes that, as a condition of being designated an economic revitalization area, will be predominately used for agricultural purposes for a period specified by the designating body. (2) "City" means any city in this state, and "town" means any town incorporated under IC 36-5-1. (3) "New manufacturing equipment" means tangible personal property that a deduction applicant: (A) installs on or before the approval deadline determined under section 9 of this chapter, in an area that is declared an economic revitalization area in which a deduction for tangible personal property is allowed; (B) uses in the direct production, manufacture, fabrication, assembly, extraction, mining, processing, refining, or finishing of other tangible personal property, including but not limited to use to dispose of solid waste or hazardous waste by converting the solid waste or hazardous waste into energy or other useful products; (C) acquires for use as described in clause (B): (i) in an arms length transaction from an entity that is not an affiliate of the deduction applicant, if the tangible personal property has been previously used in Indiana before the installation described in clause (A); or (ii) in any manner, if the tangible personal property has never been previously used in Indiana before the installation described in clause (A); and (D) has never used for any purpose in Indiana before the installation described in clause (A). (4) "Property" means a building or structure, but does not include land. (5) "Redevelopment" means the construction of new structures, in economic revitalization areas, either: (A) on unimproved real estate; or (B) on real estate upon which a prior existing structure is demolished to allow for a new construction. (6) "Rehabilitation" means the remodeling, repair, or betterment of property in any manner or any enlargement or extension of property. (7) "Designating body" means the following: (A) For a county that does not contain a consolidated city, the fiscal body of the county, city, or town. (B) For a county containing a consolidated city, the metropolitan development commission. The jurisdiction of the designating body includes a rehabilitation or redevelopment project under this chapter that falls within the boundaries of an excluded city, as defined in IC 36-3-1-7. (8) "Deduction application" means: (A) the application filed in accordance with section 5 of this chapter by a property owner who desires to obtain the deduction provided by section 3 of this chapter; (B) the application filed in accordance with section 5.4 of this chapter by a person who desires to obtain the deduction provided by section 4.5 of this chapter; or (C) the application filed in accordance with section 5.3 of this chapter by a property owner that desires to obtain the deduction provided by section 4.8 of this chapter. (9) "Designation application" means an application that is filed with a designating body to assist that body in making a determination about whether a particular area should be designated as an economic revitalization area. (10) "Hazardous waste" has the meaning set forth in IC 13-11-2-99(a). The term includes waste determined to be a hazardous waste under IC 13-22-2-3(b). (11) "Solid waste" has the meaning set forth in IC 13-11-2-205(a). However, the term does not include dead animals or any animal solid or semisolid wastes. (12) "New research and development equipment" means tangible personal property that: (A) a deduction applicant installs on or before the approval deadline determined under section 9 of this chapter, in an economic revitalization area in which a deduction for tangible personal property is allowed; (B) consists of: (i) laboratory equipment; (ii) research and development equipment; (iii) computers and computer software; (iv) telecommunications equipment; or (v) testing equipment; (C) the deduction applicant uses in research and development activities devoted directly and exclusively to experimental or laboratory research and development for new products, new uses of existing products, or improving or testing existing products; (D) the deduction applicant acquires for purposes described in this subdivision: (i) in an arms length transaction from an entity that is not an affiliate of the deduction applicant, if the tangible personal property has been previously used in Indiana before the installation described in clause (A); or (ii) in any manner, if the tangible personal property has never been previously used in Indiana before the installation described in clause (A); and (E) the deduction applicant has never used for any purpose in Indiana before the installation described in clause (A). The term does not include equipment installed in facilities used for or in connection with efficiency surveys, management studies, consumer surveys, economic surveys, advertising or promotion, or research in connection with literacy, history, or similar projects. (13) "New logistical distribution equipment" means tangible personal property that: (A) a deduction applicant installs on or before the approval deadline determined under section 9 of this chapter, in an economic revitalization area in which a deduction for tangible personal property is allowed; (B) consists of: (i) racking equipment; (ii) scanning or coding equipment; (iii) separators; (iv) conveyors; (v) fork lifts or lifting equipment (including "walk behinds"); (vi) transitional moving equipment; (vii) packaging equipment; (viii) sorting and picking equipment; or (ix) software for technology used in logistical distribution; (C) the deduction applicant acquires for the storage or distribution of goods, services, or information: (i) in an arms length transaction from an entity that is not an affiliate of the deduction applicant, if the tangible personal property has been previously used in Indiana before the installation described in clause (A); and (ii) in any manner, if the tangible personal property has never been previously used in Indiana before the installation described in clause (A); and (D) the deduction applicant has never used for any purpose in Indiana before the installation described in clause (A). (14) "New farm equipment" means tangible personal property that: (A) a deduction applicant installs after June 30, 2022, and on or before the approval deadline determined under section 9 of this chapter, in an area that will be predominately used for agricultural purposes for a period specified by the designating body as a condition of being declared an economic revitalization area; (B) is used in the direct production, extraction, harvesting, or processing of agricultural commodities for sale on land classified as agricultural land for property tax purposes; (C) was acquired for use as described in clause (B) in an arms length transaction from an entity that is not an affiliate of the deduction applicant; and (D) the deduction applicant never used for any purpose in Indiana before the installation described in clause (A). (15) "New agricultural improvement" means any improvement made to land classified as agricultural land for tax purposes that is placed in service after December 31, 2022, and that will be predominately used for agricultural purposes for a period specified by the designating body as a condition of being declared an economic revitalization area. The term includes a barn, grain bin, or silo. (16) "New information technology equipment" means tangible personal property that: (A) a deduction applicant installs on or before the approval deadline determined under section 9 of this chapter, in an economic revitalization area in which a deduction for tangible personal property is allowed; (B) consists of equipment, including software, used in the fields of: (i) information processing; (ii) office automation; (iii) telecommunication facilities and networks; (iv) informatics; (v) network administration; (vi) software development; and (vii) fiber optics; (C) the deduction applicant acquires in an arms length transaction from an entity that is not an affiliate of the deduction applicant; and (D) the deduction applicant never used for any purpose in Indiana before the installation described in clause (A). (17) "Deduction applicant" means an owner of tangible personal property who makes a deduction application. (18) "Affiliate" means an entity that effectively controls or is controlled by a deduction applicant or is associated with a deduction applicant under common ownership or control, whether by shareholdings or other means. (19) "Eligible vacant building" means a building that: (A) is zoned for commercial or industrial purposes; and (B) is unoccupied for at least one (1) year before the owner of the building or a tenant of the owner occupies the building, as evidenced by a valid certificate of occupancy, paid utility receipts, executed lease agreements, or any other evidence of occupation that the department of local government finance requires. As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979, P.L.56, SEC.5; Acts 1980, P.L.42, SEC.1; Acts 1981, P.L.72, SEC.1; P.L.71-1983, SEC.1; P.L.56-1988, SEC.1; P.L.47-1990, SEC.2; P.L.42-1992, SEC.1; P.L.18-1992, SEC.21; P.L.25-1995, SEC.17; P.L.1-1996, SEC.39; P.L.4-2000, SEC.1; P.L.64-2004, SEC.4 and P.L.81-2004, SEC.48; P.L.216-2005, SEC.1; P.L.154-2006, SEC.24; P.L.219-2007, SEC.28; P.L.224-2007, SEC.4; P.L.288-2013, SEC.4; P.L.8-2022, SEC.2; P.L.174-2022, SEC.26; P.L.178-2022(ts), SEC.5.

Ind. Code § 6-1.1-12.1-2 Findings by designating body; economic revitalization area; residentially distressed area; conditions; property tax deductions; fees

Sec. 2. (a) A designating body may find that a particular area within its jurisdiction is an economic revitalization area. However, the deduction provided by this chapter for economic revitalization areas not within a city or town shall not be available to retail businesses. (b) In a county containing a consolidated city or within a city or town, a designating body may find that a particular area within its jurisdiction is a residentially distressed area. Designation of an area as a residentially distressed area has the same effect as designating an area as an economic revitalization area, except that the amount of the deduction shall be calculated as specified in section 4.1 of this chapter and the deduction is allowed for not more than the number of years specified by the designating body under section 17 of this chapter. In order to declare a particular area a residentially distressed area, the designating body must follow the same procedure that is required to designate an area as an economic revitalization area and must make all the following additional findings or all the additional findings described in subsection (c): (1) The area is comprised of parcels that are either unimproved or contain only one (1) or two (2) family dwellings or multifamily dwellings designed for up to four (4) families, including accessory buildings for those dwellings. (2) Any dwellings in the area are not permanently occupied and are: (A) the subject of an order issued under IC 36-7-9; or (B) evidencing significant building deficiencies. (3) Parcels of property in the area: (A) have been sold and not redeemed under IC 6-1.1-24 and IC 6-1.1-25; or (B) are owned by a unit of local government. However, in a city in a county having a population of more than two hundred fifty thousand (250,000) and less than three hundred thousand (300,000), the designating body is only required to make one (1) of the additional findings described in this subsection or one (1) of the additional findings described in subsection (c). (c) In a county containing a consolidated city or within a city or town, a designating body that wishes to designate a particular area a residentially distressed area may make the following additional findings as an alternative to the additional findings described in subsection (b): (1) A significant number of dwelling units within the area are not permanently occupied or a significant number of parcels in the area are vacant land. (2) A significant number of dwelling units within the area are: (A) the subject of an order issued under IC 36-7-9; or (B) evidencing significant building deficiencies. (3) The area has experienced a net loss in the number of dwelling units, as documented by census information, local building and demolition permits, or certificates of occupancy, or the area is owned by Indiana or the United States. (4) The area (plus any areas previously designated under this subsection) will not exceed ten percent (10%) of the total area within the designating body's jurisdiction. However, in a city in a county having a population of more than two hundred fifty thousand (250,000) and less than three hundred thousand (300,000), the designating body is only required to make one (1) of the additional findings described in this subsection as an alternative to one (1) of the additional findings described in subsection (b). (d) A designating body is required to attach the following conditions to the grant of a residentially distressed area designation: (1) The deduction will not be allowed unless the dwelling is rehabilitated to meet local code standards for habitability. (2) If a designation application is filed, the designating body may require that the redevelopment or rehabilitation be completed within a reasonable period of time. (e) To make a designation described in subsection (a) or (b), the designating body shall use procedures prescribed in section 2.5 of this chapter. (f) The property tax deductions provided by section 3, 4.5, or 4.8 of this chapter are only available within an area which the designating body finds to be an economic revitalization area. (g) The designating body may adopt a resolution establishing general standards to be used, along with the requirements set forth in the definition of economic revitalization area, by the designating body in finding an area to be an economic revitalization area. The standards must have a reasonable relationship to the development objectives of the area in which the designating body has jurisdiction. The following five (5) sets of standards may be established: (1) One (1) relative to the deduction under section 3 of this chapter for economic revitalization areas that are not residentially distressed areas. (2) One (1) relative to the deduction under section 3 of this chapter for residentially distressed areas. (3) One (1) relative to the deduction allowed under section 4.5 of this chapter. (4) One (1) relative to the deduction allowed under section 4.8 of this chapter. (5) One (1) relative to property granted a deduction for an agricultural purpose. (h) A designating body may impose a fee for filing a designation application for a person requesting the designation of a particular area as an economic revitalization area. The fee may be sufficient to defray actual processing and administrative costs. However, the fee charged for filing a designation application for a parcel that contains one (1) or more owner-occupied, single-family dwellings may not exceed the cost of publishing the required notice. (i) In declaring an area an economic revitalization area, the designating body may: (1) limit the time period to a certain number of calendar years during which the economic revitalization area shall be so designated; (2) limit the type of deductions that will be allowed within the economic revitalization area to the deduction allowed under section 3 of this chapter, the deduction allowed under section 4.5 of this chapter, the deduction allowed under section 4.8 of this chapter, or any combination of these deductions; (3) limit the dollar amount of the deduction that will be allowed with respect to new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, and new information technology equipment; (4) limit the dollar amount of the deduction that will be allowed with respect to redevelopment and rehabilitation occurring in areas that are designated as economic revitalization areas; (5) limit the dollar amount of the deduction that will be allowed under section 4.8 of this chapter with respect to the occupation of an eligible vacant building; or (6) impose reasonable conditions related to the purpose of this chapter or to the general standards adopted under subsection (g) for allowing the deduction for the redevelopment or rehabilitation of the property or the installation of the new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment. To exercise one (1) or more of these powers, a designating body must include this fact in the resolution passed under section 2.5 of this chapter. (j) Notwithstanding any other provision of this chapter, if a designating body limits the time period during which an area is an economic revitalization area, that limitation does not: (1) prevent a taxpayer from obtaining a deduction for new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment installed on or before the approval deadline determined under section 9 of this chapter, but after the expiration of the economic revitalization area if the new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment was described in a statement of benefits submitted to and approved by the designating body in accordance with section 4.5 of this chapter before the expiration of the economic revitalization area designation; or (2) limit the length of time a taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under section 17 of this chapter. (k) In addition to the other requirements of this chapter, if property located in an economic revitalization area is also located in an allocation area (as defined in IC 36-7-14-39 or IC 36-7-15.1-26), a taxpayer's statement of benefits concerning that property may not be approved under this chapter unless a resolution approving the statement of benefits is adopted by the legislative body of the unit that approved the designation of the allocation area. As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979, P.L.56, SEC.6; Acts 1980, P.L.42, SEC.2; Acts 1981, P.L.310, SEC.91; P.L.72-1983, SEC.1; P.L.71-1983, SEC.2; P.L.82-1987, SEC.1; P.L.56-1988, SEC.2; P.L.3-1989, SEC.33; P.L.42-1992, SEC.2; P.L.65-1993, SEC.1; P.L.31-1994, SEC.3; P.L.85-1995, SEC.1; P.L.255-1997(ss), SEC.5; P.L.4-2000, SEC.2; P.L.64-2004, SEC.5 and P.L.81-2004, SEC.49; P.L.216-2005, SEC.2; P.L.154-2006, SEC.25; P.L.146-2008, SEC.121; P.L.119-2012, SEC.18; P.L.288-2013, SEC.5; P.L.104-2022, SEC.21; P.L.8-2022, SEC.3; P.L.105-2022, SEC.34.

Ind. Code § 6-1.1-12.1-2.5 Economic revitalization area; maps; boundaries; resolution; notice; determination; appeal

Sec. 2.5. (a) If a designating body finds that an area in its jurisdiction is an economic revitalization area, it shall either: (1) prepare maps and plats that identify the area; or (2) prepare a simplified description of the boundaries of the area by describing its location in relation to public ways, streams, or otherwise. (b) After the compilation of the materials described in subsection (a), the designating body shall pass a resolution declaring the area an economic revitalization area. The resolution must contain a description of the affected area and be filed with the county assessor. A resolution may include a determination of the number of years a deduction under section 3, 4.5, or 4.8 of this chapter is allowed. (c) After approval of a resolution under subsection (b), the designating body shall do the following: (1) Publish notice of the adoption and substance of the resolution in accordance with IC 5-3-1. (2) File the following information with each taxing unit that has authority to levy property taxes in the geographic area where the economic revitalization area is located: (A) A copy of the notice required by subdivision (1). (B) A statement containing substantially the same information as a statement of benefits filed with the designating body before the hearing required by this section under section 3, 4.5, or 4.8 of this chapter. The notice must state that a description of the affected area is available and can be inspected in the county assessor's office. The notice must also name a date when the designating body will receive and hear all remonstrances and objections from interested persons. The designating body shall file the information required by subdivision (2) with the officers of the taxing unit who are authorized to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 at least ten (10) days before the date of the public hearing. After considering the evidence, the designating body shall take final action determining whether the qualifications for an economic revitalization area have been met and confirming, modifying and confirming, or rescinding the resolution. This determination is final except that an appeal may be taken and heard as provided under subsections (d) and (e). (d) A person who filed a written remonstrance with the designating body under this section and who is aggrieved by the final action taken may, within ten (10) days after that final action, initiate an appeal of that action by filing in the office of the clerk of the circuit or superior court a copy of the order of the designating body and the person's remonstrance against that order, together with the person's bond conditioned to pay the costs of the person's appeal if the appeal is determined against the person. The only ground of appeal that the court may hear is whether the proposed project will meet the qualifications of the economic revitalization area law. The burden of proof is on the appellant. (e) An appeal under this section shall be promptly heard by the court without a jury. All remonstrances upon which an appeal has been taken shall be consolidated and heard and determined within thirty (30) days after the time of the filing of the appeal. The court shall hear evidence on the appeal, and may confirm the final action of the designating body or sustain the appeal. The judgment of the court is final and conclusive, unless an appeal is taken as in other civil actions. As added by P.L.71-1983, SEC.3. Amended by P.L.62-1986, SEC.1; P.L.56-1988, SEC.3; P.L.3-1989, SEC.34; P.L.56-1991, SEC.1; P.L.25-1995, SEC.18; P.L.4-2000, SEC.3; P.L.154-2006, SEC.26; P.L.288-2013, SEC.6.

Ind. Code § 6-1.1-12.1-2.6 Formal tax abatement or incentive request for a project in an excluded city; notice and response

Sec. 2.6. (a) This section applies only to a county having a consolidated city. (b) As used in this section "excluded city" has the meaning set forth in IC 36-3-1-7. (c) A designating body or a contracted entity working on the designating body's behalf that receives a formal tax abatement or incentive request for a project located in an excluded city shall exercise due diligence by providing written notice to the excluded city of the request and details of the investment and jobs before any formal incentive negotiation proceeding. The notice shall be delivered by certified mail that includes return receipt or any other means of delivery that provides for verification or acknowledgment of receipt. (d) Not more than five (5) business days after the date of receipt of the notice under subsection (c), an excluded city may deliver a written response to the designating body or contracted entity working on the designating body's behalf that states the excluded city's position regarding the abatement or incentive request. If a written response is not received from the excluded city within the time specified, the designating body or contracted entity shall assume that the excluded city is in favor of the request and the designating body may proceed with formal incentive negotiations. (e) When an offer letter is extended to an applicant for a tax abatement or incentive request, the designating body shall notify the legislative body of the excluded city in writing by certified mail that includes return receipt or any other means of delivery that provides for verification or acknowledgment of receipt. The legislative body of the excluded city may adopt a resolution stating the legislative body's position on the recommendation not later than thirty (30) business days after receipt of the notice. The resolution shall serve as official communication of the legislative body of the excluded city to the designating body. As added by P.L.174-2022, SEC.27.

Ind. Code § 6-1.1-12.1-3 Statement of benefits; form; findings; period of deduction; resolution; excluded facilities

Sec. 3. (a) An applicant must provide a statement of benefits to the designating body. If the designating body requires information from the applicant for economic revitalization area status for use in making its decision about whether to designate an economic revitalization area, the applicant shall provide the completed statement of benefits form to the designating body before the hearing required by section 2.5(c) of this chapter. Otherwise, the statement of benefits form must be submitted to the designating body before the initiation of the redevelopment or rehabilitation, or a new agricultural improvement 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 proposed redevelopment or rehabilitation, or new agricultural improvement. (2) 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 redevelopment or rehabilitation, or new agricultural improvement and an estimate of the annual salaries of these individuals. (3) An estimate of the value of the redevelopment or rehabilitation, or new agricultural improvement. With the approval of the designating body, 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 a deduction should be allowed, based on (and after it has made) the following findings: (1) Whether the estimate of the value of the redevelopment or rehabilitation, or new agricultural improvement is reasonable for projects of that nature. (2) 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 proposed described redevelopment or rehabilitation, or new agricultural improvement. (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 described redevelopment or rehabilitation, or new agricultural improvement. (4) Whether any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed described redevelopment or rehabilitation, or new agricultural improvement. (5) Whether the totality of benefits is sufficient to justify the deduction. A designating body may not designate an area an economic revitalization area or approve a deduction unless the findings required by this subsection are made in the affirmative. (c) Except as provided in subsections (a) through (b), the owner of property which is located in an economic revitalization area is entitled to a deduction from the assessed value of the property. For all economic revitalization areas, the period is the number of years determined under section 17 of this chapter. The owner is entitled to a deduction if: (1) the property has been rehabilitated; (2) the property is located on real estate which has been redeveloped; or (3) the property is a new agricultural improvement. The owner is entitled to the deduction for the first year, and any successive year or years, in which an increase in assessed value resulting from the rehabilitation or redevelopment, or new agricultural improvement occurs and for the following years determined under section 17 of this chapter. (d) The designating body's determination must 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 must be sent to the county auditor, who shall make the deduction as provided in section 5 of this chapter. 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). (e) Except for deductions related to redevelopment or rehabilitation of real property in a county containing a consolidated city, a deduction for the redevelopment or rehabilitation of real property may not be approved for the following facilities: (1) Private or commercial golf course. (2) Country club. (3) Massage parlor. (4) Tennis club. (5) Skating facility (including roller skating, skateboarding, or ice skating). (6) Racquet sport facility (including any handball or racquetball court). (7) Hot tub facility. (8) Suntan facility. (9) Racetrack. (10) Any facility the primary purpose of which is: (A) retail food and beverage service; (B) automobile sales or service; or (C) other retail; unless the facility is located in an economic development target area established under section 7 of this chapter. (11) Residential, unless: (A) the facility is a multifamily facility that contains at least twenty percent (20%) of the units available for use by low and moderate income individuals; (B) the facility is located in an economic development target area established under section 7 of this chapter; or (C) the area is designated as a residentially distressed area. (12) A package liquor store that holds a liquor dealer's permit under IC 7.1-3-10 or any other entity that is required to operate under a license issued under IC 7.1. As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979, P.L.56, SEC.7; P.L.71-1983, SEC.4; P.L.62-1985, SEC.1; P.L.62-1986, SEC.2; P.L.82-1987, SEC.2; P.L.56-1988, SEC.4; P.L.65-1993, SEC.2; P.L.25-1995, SEC.19; P.L.4-2000, SEC.4; P.L.126-2000, SEC.5; P.L.198-2001, SEC.38; P.L.90-2002, SEC.118; P.L.72-2004, SEC.2; P.L.99-2007, SEC.25; P.L.119-2012, SEC.19; P.L.288-2013, SEC.7; P.L.8-2022, SEC.4.

Ind. Code § 6-1.1-12.1-4 Annual deduction; amount; percentage; period of deduction; effect of reassessment

Sec. 4. (a) Except as provided in section 2(i)(4) of this chapter, and subject to section 15 of this chapter, the amount of the deduction which the property owner is entitled to receive under section 3 of this chapter for a particular year equals the product of: (1) the increase in the assessed value resulting from the rehabilitation or redevelopment; multiplied by (2) the percentage determined under section 17 of this chapter. (b) The amount of the deduction determined under subsection (a) shall be adjusted in accordance with this subsection in the following circumstances: (1) If a reassessment under a county's reassessment plan prepared under IC 6-1.1-4-4.2 occurs within the particular period of the deduction, the amount determined under subsection (a)(1) shall be adjusted to reflect the percentage increase or decrease in assessed valuation that resulted from the reassessment. (2) If an appeal of an assessment is approved that results in a reduction of the assessed value of the redeveloped or rehabilitated property, the amount of any deduction shall be adjusted to reflect the percentage decrease that resulted from the appeal. The department of local government finance shall adopt rules under IC 4-22-2 to implement this subsection. As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979, P.L.56, SEC.8; Acts 1981, P.L.72, SEC.2; P.L.62-1985, SEC.2; P.L.57-1988, SEC.1; P.L.3-1989, SEC.35; P.L.332-1989(ss), SEC.11; P.L.65-1993, SEC.3; P.L.4-2000, SEC.5; P.L.90-2002, SEC.119; P.L.219-2007, SEC.29; P.L.173-2011, SEC.5; P.L.6-2012, SEC.40; P.L.112-2012, SEC.27; P.L.288-2013, SEC.8; P.L.86-2018, SEC.44.

Ind. Code § 6-1.1-12.1-4.1 Application of sections; residentially distressed areas; deduction allowed

Sec. 4.1. (a) Section 4 of this chapter applies to economic revitalization areas that are not residentially distressed areas. (b) This subsection applies to deductions approved before July 1, 2013, for the redevelopment or rehabilitation of property located in economic revitalization areas that are residentially distressed areas. Subject to section 15 of this chapter, the amount of the deduction that a property owner is entitled to receive under section 3 of this chapter for a particular year equals the lesser of: (1) the assessed value of the improvement to the property after the rehabilitation or redevelopment has occurred; or (2) the following amount: TYPE OF DWELLING AMOUNT One (1) family dwelling $74,880 Two (2) family dwelling $106,080 Three (3) unit multifamily dwelling $156,000 Four (4) unit multifamily dwelling $199,680 (c) This subsection applies to deductions approved after June 30, 2013, for the redevelopment or rehabilitation of property located in economic revitalization areas that are residentially distressed areas. Subject to section 15 of this chapter, the amount of the deduction the property owner is entitled to receive under section 3 of this chapter in a residentially distressed area for a particular year equals the product of: (1) the increase in the assessed value resulting from the rehabilitation or redevelopment; multiplied by (2) the percentage determined under section 17 of this chapter. As added by P.L.56-1988, SEC.5. Amended by P.L.3-1989, SEC.36; P.L.65-1993, SEC.4; P.L.6-1997, SEC.58; P.L.20-2004, SEC.9; P.L.219-2007, SEC.30; P.L.288-2013, SEC.9.

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

Sec. 4.5. (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.

Ind. Code § 6-1.1-12.1-4.6 Relocation of new manufacturing equipment

Sec. 4.6. (a) A designating body may adopt a resolution to authorize a property owner to relocate new manufacturing equipment for which a deduction is being granted under this chapter. The resolution may provide that the new manufacturing equipment may only be relocated to: (1) a new location within the same economic revitalization area; or (2) a new location within a different economic revitalization area if the area is within the jurisdiction of the designating body. (b) Before adopting a resolution under this section, the designating body shall conduct a public hearing on the proposed resolution. Notice of the public hearing shall be published in accordance with IC 5-3-1. In addition, the designating body shall notify each taxing unit within the original and the new economic revitalization area of the proposed resolution, including the date and time of the public hearing. If a resolution is adopted under this section, the designating body shall deliver a copy of the adopted resolution to the county auditor within thirty (30) days after its adoption. (c) New manufacturing equipment relocated under this section remains eligible for the assessed value deduction under this chapter. The same deduction percentage is to be applied as if the new manufacturing equipment had not been relocated. As added by P.L.126-2000, SEC.6. Amended by P.L.90-2002, SEC.121; P.L.256-2003, SEC.4.

Ind. Code § 6-1.1-12.1-4.7 Deduction for new manufacturing equipment; exemptions

Sec. 4.7. (a) Section 4.5(d) of this chapter does not apply to new manufacturing equipment located in a township having a population of more than three thousand nine hundred (3,900) and less than seven thousand (7,000) located in a county having a population of more than forty-three thousand (43,000) and less than forty-three thousand five hundred (43,500) if the total original cost of all new manufacturing equipment placed into service by the owner during the preceding sixty (60) months exceeds fifty million dollars ($50,000,000), and if the economic revitalization area in which the new manufacturing equipment was installed was approved by the designating body before September 1, 1994. (b) Section 4.5(d) of this chapter does not apply to new manufacturing equipment located in a county having a population of more than thirty-three thousand (33,000) and less than thirty-three thousand one hundred (33,100) if: (1) the total original cost of all new manufacturing equipment placed into service in the county by the owner exceeds five hundred million dollars ($500,000,000); and (2) the economic revitalization area in which the new manufacturing equipment was installed was approved by the designating body before January 1, 2001. (c) A deduction under section 4.5(c) of this chapter is not allowed with respect to new manufacturing equipment described in subsection (b) in the first year the deduction is claimed or in subsequent years as permitted by section 4.5(c) of this chapter to the extent the deduction would cause the assessed value of all real property and personal property of the owner in the taxing district to be less than the incremental net assessed value for that year. (d) The following apply for purposes of subsection (c): (1) A deduction under section 4.5(c) of this chapter shall be disallowed only with respect to new manufacturing equipment installed after March 1, 2000. (2) "Incremental net assessed value" means the sum of: (A) the net assessed value of real property and depreciable personal property from which property tax revenues are required to be held in trust and pledged for the benefit of the owners of bonds issued by the redevelopment commission of a county described in subsection (b) under resolutions adopted November 16, 1998, and July 13, 2000 (as amended November 27, 2000); plus (B) fifty-four million four hundred eighty-one thousand seven hundred seventy dollars ($54,481,770). (3) The assessed value of real property and personal property of the owner shall be determined after the deductions provided by sections 3 and 4.5 of this chapter. (4) The personal property of the owner shall include inventory. (5) The amount of deductions provided by section 4.5 of this chapter with respect to new manufacturing equipment that was installed on or before March 1, 2000, shall be increased from thirty-three and one-third percent (33 1/3%) of true tax value to one hundred percent (100%) of true tax value for assessment dates after February 28, 2001. (e) A deduction not fully allowed under subsection (c) in the first year the deduction is claimed or in a subsequent year permitted by section 4.5 of this chapter shall be carried over and allowed as a deduction in succeeding years. A deduction that is carried over to a year but is not allowed in that year under this subsection shall be carried over and allowed as a deduction in succeeding years. The following apply for purposes of this subsection: (1) A deduction that is carried over to a succeeding year is not allowed in that year to the extent that the deduction, together with: (A) deductions otherwise allowed under section 3 of this chapter; (B) deductions otherwise allowed under section 4.5 of this chapter; and (C) other deductions carried over to the year under this subsection; would cause the assessed value of all real property and personal property of the owner in the taxing district to be less than the incremental net assessed value for that year. (2) Each time a deduction is carried over to a succeeding year, the deduction shall be reduced by the amount of the deduction that was allowed in the immediately preceding year. (3) A deduction may not be carried over to a succeeding year under this subsection if such year is after the period specified in section 4.5(c) of this chapter or the period specified in a resolution adopted by the designating body under section 4.5(e) of this chapter. As added by P.L.126-2000, SEC.7. Amended by P.L.205-2001, SEC.1; P.L.170-2002, SEC.17; P.L.146-2008, SEC.123; P.L.119-2012, SEC.20; P.L.288-2013, SEC.11; P.L.104-2022, SEC.22.

Ind. Code § 6-1.1-12.1-4.8 Property owner statement of benefits; findings by designating body; deduction periods, amounts, and limitations

Sec. 4.8. (a) A property owner that is an applicant for a deduction under this section must provide a statement of benefits to the designating body. (b) If the designating body requires information from the property owner for the designating body's use in deciding whether to designate an economic revitalization area, the property owner must provide the completed statement of benefits form to the designating body before the hearing required by section 2.5(c) of this chapter. Otherwise, the property owner must submit the completed statement of benefits form to the designating body before the occupation of the eligible vacant building for which the property owner desires to claim a deduction. (c) 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 eligible vacant building that the property owner or a tenant of the property owner will occupy. (2) An estimate of the number of individuals who will be employed or whose employment will be retained by the property owner or the tenant as a result of the occupation of the eligible vacant building, and an estimate of the annual salaries of those individuals. (3) Information regarding efforts by the owner or a previous owner to sell, lease, or rent the eligible vacant building during the period the eligible vacant building was unoccupied. (4) Information regarding the amount for which the eligible vacant building was offered for sale, lease, or rent by the owner or a previous owner during the period the eligible vacant building was unoccupied. (d) With the approval of the designating body, the statement of benefits may be incorporated in a designation application. A statement of benefits is a public record that may be inspected and copied under IC 5-14-3. (e) The designating body must review the statement of benefits required by subsection (a). The designating body shall determine whether an area should be designated an economic revitalization area or whether a deduction should be allowed, after the designating body has made the following findings: (1) 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 proposed occupation of the eligible vacant building. (2) 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 occupation of the eligible vacant building. (3) Whether any other benefits about which information was requested are benefits that can be reasonably expected to result from the proposed occupation of the eligible vacant building. (4) Whether the occupation of the eligible vacant building will increase the tax base and assist in the rehabilitation of the economic revitalization area. (5) Whether the totality of benefits is sufficient to justify the deduction. A designating body may not designate an area an economic revitalization area or approve a deduction under this section unless the findings required by this subsection are made in the affirmative. (f) Except as otherwise provided in this section, the owner of an eligible vacant building located in an economic revitalization area is entitled to a deduction from the assessed value of the building if the property owner or a tenant of the property owner occupies the eligible vacant building and uses it for commercial or industrial purposes. The property owner is entitled to the deduction: (1) for the first year in which the property owner or a tenant of the property owner occupies the eligible vacant building and uses it for commercial or industrial purposes; and (2) for subsequent years determined under subsection (g). (g) The designating body shall determine under section 17 of this chapter the number of years for which a property owner is entitled to a deduction under this section. This determination shall be made: (1) as part of the resolution adopted under section 2.5 of this chapter; or (2) by a resolution adopted not more than sixty (60) days after the designating body receives a copy of the property owner's deduction application from the county auditor. A certified copy of a resolution under subdivision (2) shall be sent to the county auditor, who shall make the deduction as provided in section 5.3 of this chapter. A determination concerning the number of years the deduction is allowed that is made under subdivision (1) is final and may not be changed by using the procedure under subdivision (2). (h) Except as provided in section 2(i)(5) of this chapter, and subject to section 15 of this chapter, the amount of the deduction the property owner is entitled to receive under this section for a particular year equals the product of: (1) the assessed value of the building or part of the building that is occupied by the property owner or a tenant of the property owner; multiplied by (2) the percentage determined by the designating body under section 17 of this chapter. (i) The amount of the deduction determined under subsection (h) shall be adjusted in accordance with this subsection in the following circumstances: (1) If a reassessment under a county's reassessment plan prepared under IC 6-1.1-4-4.2 occurs within the period of the deduction, the amount of the assessed value determined under subsection (h)(1) shall be adjusted to reflect the percentage increase or decrease in assessed valuation that resulted from the reassessment. (2) If an appeal of an assessment is approved and results in a reduction of the assessed value of the property, the amount of a deduction under this section shall be adjusted to reflect the percentage decrease that resulted from the appeal. (j) The department of local government finance may adopt rules under IC 4-22-2 to implement this section. As added by P.L.154-2006, SEC.28. Amended by P.L.219-2007, SEC.32; P.L.112-2012, SEC.28; P.L.288-2013, SEC.12; P.L.86-2018, SEC.45.

Ind. Code § 6-1.1-12.1-5 Real property application; filing requirements; change in property ownership; assessor review; county auditor; determination; appeal

Sec. 5. (a) A property owner who desires to obtain the deduction provided by section 3 of this chapter must file a certified deduction application, on forms prescribed by the department of local government finance, with the auditor of the county in which the property is located. Except as otherwise provided in subsection (b) or (e), the deduction application must be filed before May 10 of the year in which the addition to assessed valuation is made. (b) If notice of the addition to assessed valuation or new assessment for any year is not given to the property owner before April 10 of that year, the deduction application required by this section may be filed not later than thirty (30) days after the date such a notice is mailed to the property owner at the address shown on the records of the township or county assessor. (c) The deduction application required by this section must contain the following information: (1) The name of the property owner. (2) A description of the property for which a deduction is claimed in sufficient detail to afford identification. (3) The assessed value of the improvements before rehabilitation. (4) The increase in the assessed value of improvements resulting from the rehabilitation. (5) The assessed value of the new structure in the case of redevelopment. (6) The amount of the deduction claimed for the first year of the deduction. (7) If the deduction application is for a deduction in a residentially distressed area, the assessed value of the improvement or new structure for which the deduction is claimed. (8) The assessed value of the new agricultural improvement, if applicable. (d) A deduction application filed under subsection (a) or (b) is applicable for the year in which the addition to assessed value or assessment of a new structure is made and in the following years the deduction is allowed without any additional deduction application being filed. (e) A property owner who desires to obtain the deduction provided by section 3 of this chapter but who has failed to file a deduction application within the dates prescribed in subsection (a) or (b) may file a deduction application between January 1 and May 10 of a subsequent year which shall be applicable for the year filed and the subsequent years without any additional deduction application being filed for the amounts of the deduction which would be applicable to such years pursuant to section 4 of this chapter if such a deduction application had been filed in accordance with subsection (a) or (b). (f) Subject to subsection (i), the county auditor shall act as follows: (1) If: (A) a determination about the number of years the deduction is allowed has been made in the resolution adopted under section 2.5 of this chapter; and (B) an abatement schedule has been established under section 17 of this chapter; the county auditor shall make the appropriate deduction. (2) If: (A) a determination about the number of years the deduction is allowed has not been made in the resolution adopted under section 2.5 of this chapter; or (B) an abatement schedule has not been established under section 17 of this chapter; the county auditor shall send a copy of the deduction application to the designating body. Upon receipt of the resolution stating the number of years the deduction will be allowed or establishing the abatement schedule, as applicable, the county auditor shall make the appropriate deduction. (3) If the deduction application is for rehabilitation or redevelopment in a residentially distressed area, the county auditor shall make the appropriate deduction. (g) The amount and period of the deduction provided for property by section 3 of this chapter are not affected by a change in the ownership of the property if the new owner of the property: (1) continues to use the property in compliance with any standards established under section 2(g) of this chapter; and (2) files an application in the manner provided by subsection (e). (h) The township or county assessor shall include a notice of the deadlines for filing a deduction application under subsections (a) and (b) with each notice to a property owner of an addition to assessed value or of a new assessment. (i) Before the county auditor acts under subsection (f), the county auditor may request that the township assessor of the township in which the property is located, or the county assessor if there is no township assessor for the township, review the deduction application. (j) A property owner may appeal a determination of the county auditor under subsection (f) to deny or alter the amount of the deduction by requesting in writing a preliminary conference with the county auditor not more than forty-five (45) days after the county auditor gives the person notice of the determination. An appeal initiated under this subsection is processed and determined in the same manner that an appeal is processed and determined under IC 6-1.1-15. As added by Acts 1977, P.L.69, SEC.1. Amended by Acts 1979, P.L.56, SEC.9; Acts 1981, P.L.72, SEC.4; Acts 1982, P.L.45, SEC.12; P.L.71-1983, SEC.6; P.L.62-1985, SEC.3; P.L.62-1986, SEC.3; P.L.74-1987, SEC.7; P.L.56-1988, SEC.7; P.L.42-1992, SEC.4; P.L.65-1993, SEC.6; P.L.4-2000, SEC.7; P.L.90-2002, SEC.122; P.L.245-2003, SEC.9; P.L.193-2005, SEC.1; P.L.146-2008, SEC.124; P.L.288-2013, SEC.13; P.L.203-2016, SEC.5; P.L.8-2022, SEC.6.

Ind. Code § 6-1.1-12.1-5.1 Application; compliance with statement of benefits

Sec. 5.1. (a) This subsection applies to all deductions under section 3 of this chapter for property located in a residentially distressed area. In addition to the requirements of section 5(c) of this chapter, a deduction application filed under section 5 of this chapter must contain information showing the extent to which there has been compliance with the statement of benefits approved under section 3 of this chapter. (b) This subsection applies to each deduction (other than a deduction for property located in a residentially distressed area) for which a statement of benefits was approved under section 3 of this chapter, including a deduction for a new agricultural improvement. In addition to the requirements of section 5(c) of this chapter, a property owner who files a deduction application under section 5 of this chapter must provide the county auditor and the designating body with information showing the extent to which there has been compliance with the statement of benefits approved under section 3 of this chapter. This information must be included in the deduction application and must also be updated each year in which the deduction is applicable at the same time that the property owner is required to file a personal property tax return in the taxing district in which the property for which the deduction was granted is located. If the taxpayer does not file a personal property tax return in the taxing district in which the property is located, the information must be provided before May 15. (c) Notwithstanding IC 5-14-3 and IC 6-1.1-35-9, the following information is a public record if filed under this section: (1) The name and address of the taxpayer. (2) The location and description of the property for which the deduction was granted. (3) Any information concerning the number of employees at the property for which the deduction was granted, including estimated totals that were provided as part of the statement of benefits. (4) Any information concerning the total of the salaries paid to those employees, including estimated totals that were provided as part of the statement of benefits. (5) Any information concerning the assessed value of the property, including estimates that were provided as part of the statement of benefits. (d) The following information is confidential if filed under this section: (1) Any information concerning the specific salaries paid to individual employees by the property owner. (2) Any information concerning the cost of the property. As added by P.L.82-1987, SEC.4. Amended by P.L.56-1988, SEC.8; P.L.14-1991, SEC.4; P.L.65-1993, SEC.7; P.L.193-2005, SEC.2; P.L.288-2013, SEC.14; P.L.8-2022, SEC.7.

Ind. Code § 6-1.1-12.1-5.3 Deduction application; deadline; required information; deduction amounts and periods; county auditor duties; appeals; public and confidential records

Sec. 5.3. (a) A property owner that desires to obtain the deduction provided by section 4.8 of this chapter must file a deduction application, on forms prescribed by the department of local government finance, with the auditor of the county in which the eligible vacant building is located. Except as otherwise provided in this section, the deduction application must be filed before May 10 of the year in which the property owner or a tenant of the property owner initially occupies the eligible vacant building. (b) If notice of the assessed valuation or new assessment for a year is not given to the property owner before April 10 of that year, the deduction application required by this section may be filed not later than thirty (30) days after the date the notice is mailed to the property owner at the address shown on the records of the township or county assessor. (c) The deduction application required by this section must contain the following information: (1) The name of the property owner and, if applicable, the property owner's tenant. (2) A description of the property for which a deduction is claimed. (3) The amount of the deduction claimed for the first year of the deduction. (4) Any other information required by the department of local government finance or the designating body. (d) A deduction application filed under this section applies to the year in which the property owner or a tenant of the property owner occupies the eligible vacant building and in the following year if the deduction is allowed for a two (2) year period, without an additional deduction application being filed. (e) A property owner that desires to obtain the deduction provided by section 4.8 of this chapter but that did not file a deduction application within the dates prescribed in subsection (a) or (b) may file a deduction application between January 1 and May 10 of a subsequent year. A deduction application filed under this subsection applies to the year in which the deduction application is filed and the following year if the deduction is allowed for a two (2) year period, without an additional deduction application being filed. The amount of the deduction under this subsection is the amount that would have been applicable to the year under section 4.8 of this chapter if the deduction application had been filed in accordance with subsection (a) or (b). (f) Subject to subsection (i), the county auditor shall do the following: (1) If a determination concerning the number of years the deduction is allowed has been made in the resolution adopted under section 2.5 of this chapter, the county auditor shall make the appropriate deduction. (2) If a determination concerning the number of years the deduction is allowed has not been made in the resolution adopted under section 2.5 of this chapter, the county auditor shall send a copy of the deduction application to the designating body. Upon receipt of the resolution stating the number of years the deduction will be allowed, the county auditor shall make the appropriate deduction. (g) The amount and period of the deduction provided by section 4.8 of this chapter are not affected by a change in the ownership of the eligible vacant building or a change in the property owner's tenant, if the new property owner or the new tenant: (1) continues to occupy the eligible vacant building in compliance with any standards established under section 2(g) of this chapter; and (2) files an application in the manner provided by subsection (e). (h) Before the county auditor acts under subsection (f), the county auditor may request that the township assessor of the township in which the eligible vacant building is located, or the county assessor if there is no township assessor for the township, review the deduction application. (i) A property owner may appeal a determination of the county auditor under subsection (f) by requesting in writing a preliminary conference with the county auditor not more than forty-five (45) days after the county auditor gives the property owner notice of the determination. An appeal under this subsection shall be processed and determined in the same manner that an appeal is processed and determined under IC 6-1.1-15. (j) In addition to the requirements of subsection (c), a property owner that files a deduction application under this section must provide the county auditor and the designating body with information showing the extent to which there has been compliance with the statement of benefits approved under section 4.8 of this chapter. This information must be included in the deduction application and must also be updated each year in which the deduction is applicable: (1) at the same time that the property owner or the property owner's tenant files a personal property tax return for property located at the eligible vacant building for which the deduction was granted; or (2) if subdivision (1) does not apply, before May 15 of each year. (k) The following information is a public record if filed under this section: (1) The name and address of the property owner. (2) The location and description of the eligible vacant building for which the deduction was granted. (3) Any information concerning the number of employees at the eligible vacant building for which the deduction was granted, including estimated totals that were provided as part of the statement of benefits. (4) Any information concerning the total of the salaries paid to the employees described in subdivision (3), including estimated totals that are provided as part of the statement of benefits. (5) Any information concerning the assessed value of the eligible vacant building, including estimates that are provided as part of the statement of benefits. (l) Information concerning the specific salaries paid to individual employees by the property owner or tenant is confidential. As added by P.L.154-2006, SEC.29. Amended by P.L.146-2008, SEC.125; P.L.203-2016, SEC.6.

Ind. Code § 6-1.1-12.1-5.4 Personal property schedule; filing requirements; township assessor or county assessor review; change in property ownership; appeal

Sec. 5.4. (a) A person that desires to obtain the deduction provided by section 4.5 of this chapter must file a certified deduction schedule with the person's personal property return on a form prescribed by the department of local government finance with the township assessor of the township in which the new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment is located, or with the county assessor if there is no township assessor for the township. Except as provided in subsection (e), the deduction is applied in the amount claimed in a certified schedule that a person files with: (1) a timely personal property return under IC 6-1.1-3-7(a) or IC 6-1.1-3-7(b); or (2) a timely amended personal property return under IC 6-1.1-3-7.5. The township or county assessor shall forward to the county auditor a copy of each certified deduction schedule filed under this subsection. The township assessor shall forward to the county assessor a copy of each certified deduction schedule filed with the township assessor under this subsection. (b) The deduction schedule required by this section must contain the following information: (1) The name of the owner of the new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment. (2) A description of the new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment. (3) The amount of the deduction claimed for the first year of the deduction. (c) If a determination about the number of years the deduction is allowed has not been made in the resolution adopted under section 2.5 of this chapter, the county auditor shall notify the designating body, and the designating body shall adopt a resolution under section 4.5(e)(2) of this chapter. (d) A deduction schedule must be filed under this section in the year in which the new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment is installed and in each of the immediately succeeding years the deduction is allowed. (e) The township assessor, or the county assessor if there is no township assessor for the township, may: (1) review the deduction schedule; and (2) before the assessment date that next succeeds the assessment date for which the deduction is claimed, deny or alter the amount of the deduction. If the township or county assessor does not deny the deduction, the county auditor shall apply the deduction in the amount claimed in the deduction schedule or in the amount as altered by the township or county assessor. A township or county assessor who denies a deduction under this subsection or alters the amount of the deduction shall notify the person that claimed the deduction and the county auditor of the assessor's action. The county auditor shall notify the designating body and the county property tax assessment board of appeals of all deductions applied under this section. (f) If the ownership of new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment changes, the deduction provided under section 4.5 of this chapter continues to apply to that equipment if the new owner: (1) continues to use the equipment: (A) in compliance with any standards established under section 2(g) of this chapter; and (B) in the case of new farm equipment, on the same agricultural land for which the deduction applies; and (2) files the deduction schedules required by this section. (g) The amount of the deduction is the percentage under section 4.5 of this chapter that would have applied if the ownership of the property had not changed multiplied by the assessed value of the equipment for the year the deduction is claimed by the new owner. (h) A person may appeal a determination of the township or county assessor under subsection (e) to deny or alter the amount of the deduction by requesting in writing a preliminary conference with the township or county assessor not more than forty-five (45) days after the township or county assessor gives the person notice of the determination. Except as provided in subsection (i), an appeal initiated under this subsection is processed and determined in the same manner that an appeal is processed and determined under IC 6-1.1-15. (i) The county assessor is recused from any action the county property tax assessment board of appeals takes with respect to an appeal under subsection (h) of a determination by the county assessor. As added by P.L.1-2002, SEC.19. Amended by P.L.256-2003, SEC.5; P.L.245-2003, SEC.10; P.L.64-2004, SEC.8 and P.L.81-2004, SEC.52; P.L.193-2005, SEC.3; P.L.146-2008, SEC.126; P.L.288-2013, SEC.15; P.L.245-2015, SEC.8; P.L.8-2022, SEC.8.

Ind. Code § 6-1.1-12.1-5.5 Repealed

As added by Acts 1981, P.L.72, SEC.5. Amended by P.L.63-1985, SEC.1; P.L.74-1987, SEC.8; P.L.56-1988, SEC.9; P.L.56-1991, SEC.3; P.L.43-1992, SEC.1; P.L.65-1993, SEC.8; P.L.25-1995, SEC.21; P.L.6-1997, SEC.59; P.L.4-2000, SEC.8. Repealed by P.L.198-2001, SEC.122.

Ind. Code § 6-1.1-12.1-5.6 Compliance with statement of benefits; confidentiality of information

Sec. 5.6. (a) In addition to the requirements of section 5.4(b) of this chapter, a property owner who files a deduction schedule under section 5.4 of this chapter must provide the county auditor and the designating body with information showing the extent to which there has been compliance with the statement of benefits approved under section 4.5 of this chapter. (b) Notwithstanding IC 5-14-3 and IC 6-1.1-35-9, the following information is a public record if filed under this section: (1) The name and address of the taxpayer. (2) The location and description 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 deduction was granted. (3) Any information concerning the number of employees at the facility where the new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment is located, including estimated totals that were provided as part of the statement of benefits. (4) Any information concerning the total of the salaries paid to those employees, including estimated totals that were provided as part of the statement of benefits. (5) Any information concerning the amount of solid waste or hazardous waste converted into energy or other useful products by the new manufacturing equipment. (6) Any information concerning 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 including estimates that were provided as part of the statement of benefits. (c) The following information is confidential if filed under this section: (1) Any information concerning the specific salaries paid to individual employees by the owner of the new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment. (2) Any information concerning the cost of the new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment. As added by P.L.82-1987, SEC.5. Amended by P.L.56-1988, SEC.10; P.L.14-1991, SEC.5; P.L.65-1993, SEC.9; P.L.25-1995, SEC.22; P.L.4-2000, SEC.9; P.L.64-2004, SEC.9 and P.L.81-2004, SEC.53; P.L.216-2005, SEC.3; P.L.193-2005, SEC.4; P.L.1-2006, SEC.134; P.L.288-2013, SEC.16; P.L.8-2022, SEC.9.

Ind. Code § 6-1.1-12.1-5.8 Waiver of statement of benefits

Sec. 5.8. In lieu of providing the statement of benefits required by section 3 or 4.5 of this chapter and the additional information required by section 5.1 or 5.6 of this chapter, the designating body may, by resolution, waive the statement of benefits if the designating body finds that the purposes of this chapter are served by allowing the deduction and the property owner has, during the thirty-six (36) months preceding the first assessment date to which the waiver would apply, installed new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment or developed or rehabilitated property at a cost of at least ten million dollars ($10,000,000) as determined by the assessor of the township in which the property is located, or by the county assessor if there is no township assessor for the township. As added by P.L.47-1990, SEC.3. Amended by P.L.14-1991, SEC.7; P.L.4-2000, SEC.10; P.L.90-2002, SEC.123; P.L.256-2003, SEC.6; P.L.64-2004, SEC.10 and P.L.81-2004, SEC.54; P.L.146-2008, SEC.127; P.L.8-2022, SEC.10.

Ind. Code § 6-1.1-12.1-5.9 Determination of substantial compliance with statement of benefits; notice of noncompliance; hearing; resolution; appeal

Sec. 5.9. (a) This section does not apply to a deduction under section 3 of this chapter for property located in a residentially distressed area. (b) Not later than forty-five (45) days after receipt of the information described in section 5.1, 5.3(j), or 5.6 of this chapter, the designating body may determine whether the property owner has substantially complied with the statement of benefits approved under section 3, 4.5, or 4.8 of this chapter. If the designating body determines that the property owner has not substantially complied with the statement of benefits and that the failure to substantially comply was not caused by factors beyond the control of the property owner (such as declines in demand for the property owner's products or services), the designating body shall mail a written notice to the property owner. The written notice must include the following provisions: (1) An explanation of the reasons for the designating body's determination. (2) The date, time, and place of a hearing to be conducted by the designating body for the purpose of further considering the property owner's compliance with the statement of benefits. The date of the hearing may not be more than thirty (30) days after the date on which the notice is mailed. (c) On the date specified in the notice described in subsection (b)(2), the designating body shall conduct a hearing for the purpose of further considering the property owner's compliance with the statement of benefits. Based on the information presented at the hearing by the property owner and other interested parties, the designating body shall again determine whether the property owner has made reasonable efforts to substantially comply with the statement of benefits and whether any failure to substantially comply was caused by factors beyond the control of the property owner. If the designating body determines that the property owner has not made reasonable efforts to comply with the statement of benefits, the designating body shall adopt a resolution terminating the property owner's deduction under section 3, 4.5, or 4.8 of this chapter. If the designating body adopts such a resolution, the deduction does not apply to the next installment of property taxes owed by the property owner or to any subsequent installment of property taxes. (d) If the designating body adopts a resolution terminating a deduction under subsection (c), the designating body shall immediately mail a certified copy of the resolution to: (1) the property owner; (2) the county auditor; and (3) the county assessor. The county auditor shall remove the deduction from the tax duplicate and shall notify the county treasurer of the termination of the deduction. If the designating body's resolution is adopted after the county treasurer has mailed the statement required by IC 6-1.1-22-8.1, the county treasurer shall immediately mail the property owner a revised statement that reflects the termination of the deduction. (e) A property owner whose deduction is terminated by the designating body under this section may appeal the designating body's decision by filing a complaint in the office of the clerk of the circuit or superior court together with a bond conditioned to pay the costs of the appeal if the appeal is determined against the property owner. An appeal under this subsection shall be promptly heard by the court without a jury and determined within thirty (30) days after the time of the filing of the appeal. The court shall hear evidence on the appeal and may confirm the action of the designating body or sustain the appeal. The judgment of the court is final and conclusive unless an appeal is taken as in other civil actions. (f) If an appeal under subsection (e) is pending, the taxes resulting from the termination of the deduction are not due until after the appeal is finally adjudicated and the termination of the deduction is finally determined. As added by P.L.14-1991, SEC.6. Amended by P.L.90-2002, SEC.124; P.L.256-2003, SEC.7; P.L.193-2005, SEC.5; P.L.154-2006, SEC.30; P.L.3-2008, SEC.37; P.L.146-2008, SEC.128; P.L.288-2013, SEC.17.

Ind. Code § 6-1.1-12.1-6 Multiple deductions barred

Sec. 6. (a) A property owner may not receive a deduction under this chapter for repairs or improvements to real property if the property owner receives a deduction under either IC 6-1.1-12-18 (before its expiration) or IC 6-1.1-12-22 (before its expiration) for those same repairs or improvements. This subsection expires January 1, 2033. (b) A property owner may not receive a deduction under this chapter if the property owner receives a deduction under IC 6-1.1-12-28.5 (before its expiration) for the same property. As added by Acts 1977, P.L.69, SEC.1. Amended by P.L.25-1995, SEC.23; P.L.181-2016, SEC.12; P.L.68-2025, SEC.54.

Ind. Code § 6-1.1-12.1-7 Economic development target area; designation

Sec. 7. (a) After favorable recommendation by an economic development commission, the fiscal body of a city, town, or county may by ordinance designate as an economic development target area a specific geographic territory that: (1) has become undesirable or impossible for normal development and occupancy because of a lack of development, cessation of growth, deterioration of improvements or character of occupancy, age, obsolescence, substandard buildings, or other factors that have impaired values or prevent a normal development of property or use of property; (2) has been designated as a registered historic district under: (A) the National Historic Preservation Act of 1966; or (B) the jurisdiction of a preservation commission organized under: (i) IC 36-7-11; (ii) IC 36-7-11.1; (iii) IC 36-7-11.2; (iv) IC 36-7-11.3; or (v) IC 14-3-3.2 (before its repeal); or (3) encompasses buildings, structures, sites, or other facilities that are: (A) listed on the national register of historic places established pursuant to 16 U.S.C. 470 et seq.; (B) listed on the register of Indiana historic sites and historic structures established under IC 14-21-1; or (C) determined to be eligible for listing on the Indiana register by the Indiana state historic preservation officer. (b) The fiscal body of a city, town, or county may designate a maximum of fifteen percent (15%) of the total geographic territory of the city, town, or county to be in economic development target areas. (c) Notwithstanding the repeal of IC 36-7-11.9-4 and IC 36-7-12-38, an economic development target area established by a city or town before July 1, 1987, continues in effect until it is modified or abolished by ordinance of the city or town fiscal body. As added by P.L.82-1987, SEC.7. Amended by P.L.1-1995, SEC.44; P.L.204-2023, SEC.6.

Ind. Code § 6-1.1-12.1-8 Publishing and filing deduction information

Sec. 8. (a) Not later than December 31 of each year, the county auditor shall publish the following in a newspaper of general interest and readership and not one of limited subject matter: (1) A list of the deduction applications that were filed under this chapter during that year that resulted in deductions being applied under this chapter for that year. The list must contain the following: (A) The name and address of each person approved for or receiving a deduction that was filed for during the year. (B) The amount of each deduction that was filed for during the year. (C) The number of years for which each deduction that was filed for during the year will be available. (D) The total amount for all deductions that were filed for and applied during the year. (2) The total amount of all deductions for real property that were in effect under section 3 of this chapter during the year. (3) The total amount of all deductions for new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment that were in effect under section 4.5 of this chapter during the year. (4) The total amount of all deductions for eligible vacant buildings that were in effect under section 4.8 of this chapter during the year. (b) The county auditor shall file the information described in subsection (a)(2), (a)(3), and (a)(4) with the department of local government finance not later than December 31 of each year. As added by P.L.77-1989, SEC.3. Amended by P.L.42-1992, SEC.5; P.L.4-2000, SEC.11; P.L.90-2002, SEC.125; P.L.64-2004, SEC.11 and P.L.81-2004, SEC.55; P.L.193-2005, SEC.6; P.L.154-2006, SEC.31; P.L.8-2022, SEC.11.

Ind. Code § 6-1.1-12.1-9 Deadline for approval of statement of benefits; extension

Sec. 9. Notwithstanding any other provision of this chapter, a designating body may not approve a statement of benefits for a deduction under section 3, 4.5, or 4.8 of this chapter after the approval deadline, which is determined in the following manner: (1) The initial approval deadline is December 31, 2011. (2) Subject to subdivision (3), the initial approval deadline and subsequent approval deadlines are automatically extended in increments of five (5) years, so that approval deadlines subsequent to the initial approval deadline fall on December 31, 2016, and December 31 of each fifth year thereafter. (3) At least one (1) year before the date of an approval deadline determined under subdivision (2), the general assembly may enact a law that: (A) terminates the automatic extension of approval deadlines under subdivision (2); and (B) specifically designates a particular date as the final approval deadline. As added by P.L.18-1992, SEC.22. Amended by P.L.25-1995, SEC.24; P.L.216-2005, SEC.4; P.L.154-2006, SEC.32.

Ind. Code § 6-1.1-12.1-9.5 Waiver of noncompliance

Sec. 9.5. (a) As used in this section, "clerical error" includes mathematical errors and omitted signatures. (b) Except as provided in section 9 of this chapter, the designating body may by resolution waive noncompliance with the following requirements in this chapter with respect to a particular deduction under this chapter: (1) a filing deadline applicable to an application, a statement of benefits, or another document that is required to be filed under this chapter; or (2) a clerical error in an application, a statement of benefits, or another document that is required to be filed under this chapter; if the taxpayer otherwise qualifies for the deduction and the document is filed or the clerical error is corrected before the resolution is adopted. The resolution must specifically identify the property, deductions, and taxpayer that are effected by the resolution, specifically identify the noncompliance that is the subject of the resolution, and include a finding that the noncompliance has been corrected before the adoption of the resolution. (c) The designating body shall certify a copy of a resolution adopted under this section to the taxpayer and the department of local government finance. (d) If a noncompliance with this chapter has been corrected and a resolution is adopted under this section, the taxpayer shall be treated as if the taxpayer had complied with the procedural requirements of this chapter. However, if the designating body determines that granting the relief permitted by this section would result in a delay in the issuance of tax bills, require the recalculation of tax rates or tax levies for a particular year, or otherwise cause an undue burden on a taxing unit, the designating body may require that the deduction that the taxpayer would be entitled to receive for a particular year be applied to a subsequent year in the manner prescribed by the department of local government finance. As added by P.L.154-2006, SEC.33.

Ind. Code § 6-1.1-12.1-10 Retroactive approval of statement of benefits; applicability

Sec. 10. (a) This section applies to a town having a population of more than one thousand (1,000) located in a county having a population of more than twenty-eight thousand (28,000) and less than twenty-eight thousand one hundred eighty-one (28,181). (b) Notwithstanding sections 3 and 4.5 of this chapter, the submission of a statement of benefits to a designating body subsequent to the installation of new manufacturing equipment and the initiation of the rehabilitation or redevelopment of real estate and the designating body's retroactive approval of that statement of benefits are legalized and validated for 1993 and subsequent assessment years, subject to the limitations set forth in section 5(e) of this chapter. As added by P.L.32-1994, SEC.1. Amended by P.L.170-2002, SEC.18; P.L.119-2012, SEC.21; P.L.104-2022, SEC.23.

Ind. Code § 6-1.1-12.1-11 Repealed

As added by P.L.25-1995, SEC.25. Amended by P.L.4-2005, SEC.36. Repealed by P.L.53-2014, SEC.71.

Ind. Code § 6-1.1-12.1-11.3 Waiver of noncompliance

Sec. 11.3. (a) This section applies only to the following requirements: (1) Failure to provide the completed statement of benefits form to the designating body before the hearing required by section 2.5(c) of this chapter. (2) Failure to submit the completed statement of benefits form to the designating body before the: (A) initiation of the redevelopment or rehabilitation; (B) installation of new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment; or (C) occupation of an eligible vacant building; for which the person desires to claim a deduction under this chapter. (3) Failure to designate an area as an economic revitalization area before the initiation of the: (A) redevelopment; (B) installation of new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment; (C) rehabilitation; or (D) occupation of an eligible vacant building; for which the person desires to claim a deduction under this chapter. (4) Failure to make the required findings of fact before designating an area as an economic revitalization area or authorizing a deduction for new manufacturing equipment, new farm equipment, new research and development equipment, new logistical distribution equipment, or new information technology equipment under section 2, 3, 4.5, or 4.8 of this chapter. (5) Failure to file a: (A) timely; or (B) complete; deduction application under section 5, 5.3, or 5.4 of this chapter. (b) This section does not grant a designating body the authority to exempt a person from filing a statement of benefits or exempt a designating body from making findings of fact. (c) A designating body may by resolution waive noncompliance described under subsection (a) under the terms and conditions specified in the resolution. Before adopting a waiver under this subsection, the designating body shall conduct a public hearing on the waiver. As added by P.L.84-1995, SEC.3. Amended by P.L.4-2000, SEC.12; P.L.245-2003, SEC.11; P.L.64-2004, SEC.12 and P.L.81-2004, SEC.56; P.L.154-2006, SEC.34; P.L.173-2011, SEC.7; P.L.288-2013, SEC.18; P.L.8-2022, SEC.12.

Ind. Code § 6-1.1-12.1-12 Repayment of deduction falsely obtained; appeal; calculation; distribution of repayment

Sec. 12. (a) A property owner that has received a deduction under section 3, or 4.5 of this chapter is subject to the provisions of this section if the designating body adopts a resolution incorporating the provisions of this section for the economic revitalization area in which the property owner is located. (b) If: (1) the property owner (or, in the case of a deduction under section 4.8 of this chapter, the property owner or a tenant of the property owner) ceases operations at the facility for which the deduction was granted; and (2) the designating body finds that the property owner obtained the deduction by intentionally providing false information concerning the property owner's plans to continue operations at the facility; the property owner shall pay the amount determined under subsection (e) to the county treasurer. (c) A property owner may appeal the designating body's decision under subsection (b) by filing a complaint in the office of the clerk of the circuit or superior court together with a bond conditioned to pay the costs of the appeal if the appeal is determined against the property owner. An appeal under this subsection shall be promptly heard by the court without a jury and determined not more than thirty (30) days after the time of the filing of the appeal. The court shall hear evidence on the appeal and may confirm the action of the designating body or sustain the appeal. The judgment of the court is a final determination that may be appealed in the same manner as other civil actions. (d) If an appeal under subsection (c) is pending, the payment required by this section is not due until after the appeal is finally adjudicated and the property owner's liability for the payment is finally determined. (e) The county auditor shall determine the amount to be paid by the property owner according to the following formula: STEP ONE: For each year that the deduction was in effect, determine the additional amount of property taxes that would have been paid by the property owner if the deduction had not been in effect. STEP TWO: Determine the sum of the STEP ONE amounts. STEP THREE: Multiply the sum determined under STEP TWO by one and one-tenth (1.1). (f) The county treasurer shall distribute money paid under this section on a pro rata basis to the general fund of each taxing unit that contains the property that was subject to the deduction. The amount to be distributed to the general fund of each taxing unit shall be determined by the county auditor according to the following formula: STEP ONE: For each year that the deduction was in effect, determine the additional amount of property taxes that would have been paid by the property owner to the taxing unit if the deduction had not been in effect. STEP TWO: Determine the sum of the STEP ONE amounts. STEP THREE: Divide the STEP TWO sum by the sum determined under STEP TWO of subsection (e). STEP FOUR: Multiply the amount paid by the property owner under subsection (e) by the STEP THREE quotient. As added by P.L.85-1995, SEC.2. Amended by P.L.154-2006, SEC.35.

Ind. Code § 6-1.1-12.1-12.5 Distribution of reimbursement, repayment, or penalty imposed for failure to comply with requirements

Sec. 12.5. Except as provided in section 12(f) of this chapter, if a county or municipality receives a reimbursement, repayment, or penalty from a taxpayer on account of the taxpayer's failure to comply with the statement of benefits provided by the taxpayer or on account of the taxpayer's failure to comply with any other requirement to receive a deduction under this chapter, the county or municipal fiscal officer shall distribute the amount of the reimbursement, repayment, or penalty on a pro rata basis to each taxing unit that contains the property that was subject to the deduction. The amount to be distributed to each taxing unit that contains the property that was subject to the deduction shall be determined according to the following formula: STEP ONE: Determine the total aggregate property tax rate imposed in the preceding year by the taxing unit. STEP TWO: Determine the sum of the STEP ONE amounts for all taxing units that contain the property that was subject to the deduction. STEP THREE: Divide the STEP ONE amount by the sum determined under STEP TWO. STEP FOUR: Multiply the amount of the reimbursement, repayment, or penalty by the STEP THREE quotient. As added by P.L.80-2014, SEC.4.

Ind. Code § 6-1.1-12.1-13 Department of local government finance rules

Sec. 13. The department of local government finance shall adopt rules under IC 4-22-2 to implement this chapter. As added by P.L.245-2003, SEC.12.

Ind. Code § 6-1.1-12.1-14 Local government authority to impose fee with consent of property owner; fee amount; distribution

Sec. 14. (a) This section does not apply to: (1) a deduction under section 3 of this chapter for property located in a residentially distressed area; or (2) any other deduction under section 3 or 4.5 of this chapter for which a statement of benefits was approved before July 1, 2004. (b) A property owner that receives a deduction under section 3, 4.5, or 4.8 of this chapter is subject to this section only if the designating body, with the consent of the property owner, incorporates this section, including the percentage to be applied by the county auditor for purposes of STEP TWO of subsection (c), into its initial approval of the property owner's statement of benefits and deduction at the time of that approval. (c) During each year in which a property owner's property tax liability is reduced by a deduction applied under this chapter, the property owner shall pay to the county treasurer a fee in an amount determined by the county auditor. The county auditor shall determine the amount of the fee to be paid by the property owner according to the following formula: STEP ONE: Determine the additional amount of property taxes that would have been paid by the property owner during the year if the deduction had not been in effect. STEP TWO: Multiply the amount determined under STEP ONE by the percentage determined by the designating body under subsection (b), which may not exceed fifteen percent (15%). The percentage determined by the designating body remains in effect throughout the term of the deduction and may not be changed. STEP THREE: Determine the lesser of the STEP TWO product or one hundred thousand dollars ($100,000). (d) Fees collected under this section must be distributed to one (1) or more public or nonprofit entities established to promote economic development within the corporate limits of the city, town, or county served by the designating body. The designating body shall notify the county auditor of the entities that are to receive distributions under this section and the relative proportions of those distributions. The county auditor shall distribute fees collected under this section in accordance with the designating body's instructions. (e) If the designating body determines that a property owner has not paid a fee imposed under this section, the designating body may adopt a resolution terminating the property owner's deduction under section 3, 4.5, or 4.8 of this chapter. If the designating body adopts such a resolution, the deduction does not apply to the next installment of property taxes owed by the property owner or to any subsequent installment of property taxes. As added by P.L.81-2004, SEC.57. Amended by P.L.193-2005, SEC.7; P.L.154-2006, SEC.36.

Ind. Code § 6-1.1-12.1-15 Correction of deduction errors

Sec. 15. (a) If: (1) as the result of an error by a taxpayer the county auditor applies a deduction under this chapter for a particular assessment date in an amount that is less than the amount to which the taxpayer is entitled under this chapter; and (2) the taxpayer is entitled to a correction of the error under this article; the county auditor shall apply the correction of the error as provided in this section. (b) With respect to a deduction based on an increase in the assessed value of real property, the county auditor shall apply a deduction from the assessed value of the real property: (1) except as provided in subsection (d), for the assessment date that next succeeds the last assessment date for which a deduction under this chapter would apply without regard to this section based on that increase; and (2) except as provided in subsection (c), in the amount of the lesser of: (A) the remainder of: (i) the amount of the deduction to which the taxpayer is entitled under this chapter for the particular assessment date under subsection (a); minus (ii) the amount of the deduction that was applied for that assessment date; or (B) the assessed value of the real property for the assessment date for which the correction applies. (c) If the county auditor applies an incorrect deduction as described in subsection (a) for more than one (1) assessment date, the county auditor shall: (1) combine the amounts of deduction corrections determined under subsection (b)(2)(A) for all of the assessment dates for which incorrect deductions were applied; and (2) except as provided in subsection (d), apply that combined amount as a deduction for the assessment date referred to in subsection (b)(1) in the manner described in subsection (b)(2). (d) If: (1) the remainder determined under subsection (b)(2)(A); or (2) the combined amount of deduction corrections under subsection (c)(1); exceeds the assessed value referred to in subsection (b)(2)(B), the county auditor shall carry the excess over as assessed value deductions for the immediately succeeding assessment date or dates. (e) With respect to a deduction based on an increase in the assessed value of personal property, the county auditor shall apply deduction corrections in the manner provided in subsections (a) through (d), except that the assessed value and deduction determinations apply to the taxpayer's personal property return. (f) A taxpayer is not required to file an application for a deduction under this section. As added by P.L.219-2007, SEC.33.

Ind. Code § 6-1.1-12.1-17 Abatement schedules

Sec. 17. (a) A designating body may provide to a business that is established in or relocated to a revitalization area and that receives a deduction under section 4 or 4.5 of this chapter an abatement schedule based on the following factors: (1) The total amount of the taxpayer's investment in real and personal property. (2) The number of new full-time equivalent jobs created. (3) The average wage of the new employees compared to the state minimum wage. (4) The infrastructure requirements for the taxpayer's investment. (5) In the case of a deduction for new farm equipment or new agricultural improvement, an agreement by the deduction applicant to predominately use the area for agricultural purposes for a period specified by the designating body. (b) This subsection applies to a statement of benefits approved after June 30, 2013. A designating body shall establish an abatement schedule for each deduction allowed under this chapter. An abatement schedule must specify the percentage amount of the deduction for each year of the deduction. Except as provided in subsection (d) and section 18 of this chapter, an abatement schedule may not exceed ten (10) years. (c) An abatement schedule approved for a particular taxpayer before July 1, 2013, remains in effect until the abatement schedule expires under the terms of the resolution approving the taxpayer's statement of benefits. (d) An abatement schedule for new farm equipment or new agricultural improvement may not exceed five (5) years. As added by P.L.173-2011, SEC.9. Amended by P.L.288-2013, SEC.20; P.L.80-2014, SEC.5; P.L.8-2022, SEC.13.

Ind. Code § 6-1.1-12.1-18 Enhanced abatement for certain business personal property; specification of percentage amount; maximum duration; review of compliance with statement of benefits

Sec. 18. (a) This section applies to a deduction provided under section 4.5 of this chapter for new personal property with respect to a statement of benefits approved after June 30, 2015. (b) As used in this section, "business personal property" means personal property that: (1) is otherwise subject to assessment and taxation under this article; and (2) is used in a trade or business or otherwise held, used, or consumed in connection with the production of income. The term does not include mobile homes assessed under IC 6-1.1-7, personal property held as an investment, or personal property that is assessed under IC 6-1.1-8 and is owned by a public utility subject to regulation by the Indiana utility regulatory commission. However, the term does include the personal property of a telephone company or a communications service provider if that personal property meets the requirements of subdivisions (1) through (2), regardless of whether that personal property is assessed under IC 6-1.1-8 and regardless of whether the telephone company or communications service provider is subject to regulation by the Indiana utility regulatory commission. (c) As used in this section, "new personal property" means business personal property that: (1) a taxpayer places in service after the date the taxpayer's statement of benefits is approved by the designating body; and (2) has not previously been used in Indiana before the taxpayer acquires the business personal property. (d) A designating body may establish an enhanced abatement schedule for a deduction described in subsection (a). An enhanced abatement schedule established under this subsection: (1) must specify the percentage amount of the deduction for each year of the deduction; and (2) may not exceed twenty (20) years. (e) If a taxpayer is granted a deduction under section 4.5 of this chapter on an abatement schedule that exceeds ten (10) years through an enhanced abatement schedule established under subsection (d), the designating body shall conduct a public hearing to review the taxpayer's compliance with the statement of benefits provided to the designating body under this chapter after the tenth year of the abatement. As added by P.L.80-2014, SEC.6.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026

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