Statement of benefits; findings by designating body; deduction
periods, amounts, and limitations
Sec. 4.5. (a) For purposes of this section, "personal property"
means personal property other than inventory (as defined in
IC 6-1.1-3-11(a)).
(b) 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 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
research and development equipment, new logistical
distribution equipment, or new information technology
equipment that the person proposes to acquire.
(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 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
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 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.
(c) The designating body must review the statement of benefits
required under subsection (b). 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 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 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 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 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 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.
(d) Except as provided in subsection (h), an owner of new
manufacturing equipment, new research and development equipment,
new logistical distribution equipment, or new information technology
equipment whose statement of benefits is approved after June 30,
2000, is entitled to a deduction from the assessed value of that
equipment for the number of years determined by the designating
body under subsection (g). Except as provided in subsection (f) and
in section 2(i)(3) 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 research and development equipment, new logistical
distribution equipment, or new information technology
equipment in the year of deduction under the appropriate table
set forth in subsection (e); multiplied by
(2) the percentage prescribed in the appropriate table set forth
in subsection (e).
(e) The percentage to be used in calculating the deduction under
subsection (d) is as follows:
(1) For deductions allowed over a one (1) year period:
YEAR OF DEDUCTION PERCENTAGE
1st
100%
2nd and thereafter
0%
(2) For deductions allowed over a two (2) year period:
YEAR OF DEDUCTION PERCENTAGE
1st
100%
2nd
50%
3rd and thereafter
0%
(3) For deductions allowed over a three (3) year period:
YEAR OF DEDUCTION PERCENTAGE
1st
100%
2nd
66%
3rd
33%
4th and thereafter
0%
(4) For deductions allowed over a four (4) year period:
YEAR OF DEDUCTION PERCENTAGE
1st
100%
2nd
75%
3rd
50%
4th
25%
5th and thereafter
0%
(5) For deductions allowed over a five (5) year period:
YEAR OF DEDUCTION PERCENTAGE
1st
100%
2nd
80%
3rd
60%
4th
40%
5th
20%
6th and thereafter
0%
(6) For deductions allowed over a six (6) year period:
YEAR OF DEDUCTION PERCENTAGE
1st
100%
2nd
85%
3rd
66%
4th
50%
5th
34%
6th
25%
7th and thereafter
0%
(7) For deductions allowed over a seven (7) year period:
YEAR OF DEDUCTION PERCENTAGE
1st
100%
2nd
85%
3rd
71%
4th
57%
5th
43%
6th
29%
7th
14%
8th and thereafter
0%
(8) For deductions allowed over an eight (8) year period:
YEAR OF DEDUCTION PERCENTAGE
1st
100%
2nd
88%
3rd
75%
4th
63%
5th
50%
6th
38%
7th
25%
8th
13%
9th and thereafter
0%
(9) For deductions allowed over a nine (9) year period:
YEAR OF DEDUCTION PERCENTAGE
1st
100%
2nd
88%
3rd
77%
4th
66%
5th
55%
6th
44%
7th
33%
8th
22%
9th
11%
10th and thereafter
0%
(10) For deductions allowed over a ten (10) year period:
YEAR OF DEDUCTION PERCENTAGE
1st
100%
2nd
90%
3rd
80%
4th
70%
5th
60%
6th
50%
7th
40%
8th
30%
9th
20%
10th
10%
11th and thereafter
0%
(f) 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.
(g) For an economic revitalization area designated before July 1,
2000, the designating body shall determine whether a property owner
whose statement of benefits is approved after April 30, 1991, is
entitled to a deduction for five (5) or ten (10) years. For an economic
revitalization area designated after June 30, 2000, the designating
body shall determine the number of years the deduction is allowed.
However, 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).
(h) 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 violation under IC 13-7-13-3 (repealed),
IC 13-7-13-4 (repealed), or IC 13-30-6; 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.
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.
Last modified: May 28, 2006