In Indiana, tax abatement is technically defined within state law as an economic revitalization area (ERA) deduction.  The process begins by designating a certain piece of real estate as an ERA.  Subsequent investment on that property, within state guidelines, is then eligible for tax abatement.  Two types of investments can receive tax abatement - real estate and personal property improvements.

Regarding real property, the purchase of land does not qualify for a deduction; only a structure or building.  Abatement is only for the increase in assessed value which means it cannot be applied to the value of existing structures.  Activities eligible for abatement include the construction of new structures, additions to existing structures, and the remodel or repair of a structure that results in an increase in assessed value.  Deductions for real property can be approved for a period of three, five, seven, or ten years, during which, new taxes are phased in.  Only in the first year is 100% of the increase in assessed value abated.

Personal property abatements are for equipment or machinery used for the production, manufacturing, fabrication, assembly, or processing of other personal property.  In addition, equipment used for research and development, information technology systems and on site logistical equipment are eligible for abatement.  Used equipment can qualify for abatement if not previously used and taxed in Indiana.  Like the real property abatement, deductions for personal property can be granted for a period of three, five, seven, or ten years . 

The Allen County economic development staff uses a point system to objectively evaluate applications for ERA designation and determine a recommendation for the abatement period.  The Allen County Council or appropriate fiscal body makes the final determination.

Through professional services agreements, the Allen County economic development staff administers the county's tax abatement program for the cities of New Haven and Woodburn, and the towns of Grabill, Huntertown, and Monroeville.  The City of Fort Wayne has its own economic development staff that administers its tax abatement program within its corporate boundaries.

Company representatives interested in applying for ERA designation are encouraged to contact the economic development staff to discuss their project and determine its eligibility. 

The City of Fort Wayne has its own separate policy and application for tax abatement.  Please contact the Fort Wayne Community Development Division for that information.

Please click the following link for a DLGF presentation regarding abatements.   DLGF Abatement Information

Allen County Property Tax Abatements

 2011 Payable 2012 Abatements

 2010 Payable 2011 Abatements

 2009 Payable 2010 Abatements

 2008 Payable 2009 Abatements

Public Review Packets

Parco, Inc. Economic Revitalization Area