Deduction for new manufacturing equipment; exemptions
Sec. 4.7. (a) Section 4.5(f) of this chapter does not apply to new
manufacturing equipment located in a township having a population
of more than four thousand (4,000) but less than seven thousand
(7,000) located in a county having a population of more than forty
thousand (40,000) but less than forty thousand nine hundred (40,900)
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(f) of this chapter does not apply to new
manufacturing equipment located in a county having a population of
more than thirty-two thousand (32,000) but less than thirty-three
thousand (33,000) 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(d) 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(d) 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(d) 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(d) of this chapter or the period specified in a
resolution adopted by the designating body under section 4.5(h)
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.
Last modified: May 28, 2006