Deduction for manufacturing equipment or inventory
Sec. 10. (a) An owner of new manufacturing equipment or
inventory, or both, whose statement of benefits is approved is
entitled to a deduction from the assessed value of that equipment and
inventory for a period of ten (10) years. Except as provided in
subsections (c) and (d), for the first five (5) years, the amount of the
deduction for new manufacturing equipment that an owner is entitled
to for a particular year equals the assessed value of the new
manufacturing equipment. For the sixth through the tenth year, the
amount of the deduction equals the product of:
(1) the assessed value of the new manufacturing equipment;
multiplied by
(2) the percentage prescribed in the following table:
YEAR OF DEDUCTION PERCENTAGE
6th 100%
7th 95%
8th 80%
9th 65%
10th 50%
11th and thereafter 0%
(b) For the first year the amount of the deduction for inventory
equals the assessed value of the inventory. For the next nine (9)
years, the amount of the deduction equals:
(1) the assessed value of the inventory for that year; multiplied
by
(2) the owner's export sales ratio for the previous year, as
certified by the department of state revenue under IC 6-3-2-13.
(c) A deduction under this section is not allowed in the first year
the deduction is claimed for new manufacturing equipment to the
extent that it would cause the assessed value of all of the personal
property of the owner in the taxing district in which the equipment
is located to be less than the assessed value of all of the personal
property of the owner in that taxing district in the immediately
preceding year.
(d) If a deduction is not fully allowed under subsection (c) in the
first year the deduction is claimed, then the percentages specified in
subsection (a) apply in the subsequent years to the amount of
deduction that was allowed in the first year.
As added by P.L.62-1988, SEC.1.
Last modified: May 28, 2006