Available Incentives

West Central Indiana, in partnership with the State of Indiana, offer a variety of incentive programs for new and expanding businesses in our region. The scope of project incentives is based on number and type of new jobs created or retained in Indiana, and new capital investment made in the community.

Local Incentives

Property Tax Abatement
Real property tax abatement is a declining percentage of the increase in assessed value of real property improvements based upon one of ten time periods and percentages. Land does not qualify for abatement. Depreciable personal property abatement is a declining percentage of the assessed value of newly-installed manufacturing equipment, based upon one of ten time periods and percentages. Used manufacturing equipment can also qualify for abatement as long as the equipment is new to the state of Indiana.

Tax Increment Financing Assistance (TIF)
Tax increment is the property tax revenues collected on the increased assessed valuation of real or personal property in an area being developed or redevelopment. Tax increment may also include property tax revenues collected on the increased assessed valuation of depreciable personal property of any designated taxpayer in an area being developed or redeveloped and all other depreciable personal property located and taxable on the designated taxpayer's site of operations in the area being developed or redeveloped.

Tax increment revenues may be used to pay the principal and interest on any bonds issued for the purpose of financing or refinancing the redevelopment or economic development of the allocation area; establish, augment or restore the debt service reserve for bonds; pay principal and interest on bonds issued by the unit to pay for local public improvements in or serving the allocation area; make payments on leases in the allocation area and provide funding for numerous other initiatives as defined by statute.

Tax-Exempt Bonds
Tax-exempt bonds provide capital financing at lower rates than most conventional financing sources. Interest rates and terms are negotiated. Bonds are issued through loan, lease, or sale agreements. The bonds can finance facilities for manufacturing and certain other projects. Volume cap is the amount of tax-exempt financing for certain types of private companies allowed in a state in a calendar year. A company must obtain an award of volume cap before it can have tax-exempt bonds issued for its project.