2023 Indiana Code › Title 6. Taxation › Article 1.1. Property Taxes › Chapter 12.1. Deduction for Rehabilitation or Redevelopment of Real Property in Economic Revitalization Areas › 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.