This month, Tony’s Tip addresses abatements in Indiana.
January 5, 2018
PLAN ON FILING ABATEMENTS IN INDIANA
If your plans for 2018 include adding new equipment, or even rebuilding the equipment you have, don’t miss out on the tax savings opportunity! In Indiana, the amount you spend completing those projects can be deducted from your assessment by utilizing an Economic Revitalization Area (ERA).
There are certain requirements, such as submitting a Statement of Benefits to the designating body in your area (such as the local redevelopment commission or the Economic Development Corporation) before any expenditures are made for your projects. The designating body can then establish an ERA, allowing you to claim those expenditures as a deduction on your personal property filings. You must claim this deduction before May 15 of the assessment year that your project was installed and/or fully functional.
Historically, designating bodies have been very generous in granting ERAs. I like to think of ERAs as a partnership between your business and the local community, where you are investing in each other. For example, every $500,000 you invest in your project – which can guarantee job retention, or even add employees – your firm’s tax savings will be approximately $20,000 over a 10-year period.
Don’t put off getting the process started! Let Valu Tec assist you and walk you through the process. Let the savings begin!!!