A variety of local and state incentives are available to assist existing and new companies with investment in Portage. Below is a brief summary.
Incentive requests should be made before construction starts and/or before the equipment is purchased. The Department of Local Government Finance will not approve tax abatement on property and/or equipment that was installed prior to the City’s approval of the statement on benefits (SB-1). This is also true for state incentives.
Portage EDC looks forward to helping facilitate incentive discussions with state and local leaders.
Property Tax Abatement (Indiana Code 6-1.1-2)
Tax abatement is a phasing-in of real and/or personal property taxes for projects that increase the tax base and the employment levels. The Portage City Council may offer real and/or personal property tax abatement as an incentive to new or expanding industrial businesses or for certain commercial projects located within the designated Economic Revitalization Area (ERA). Each tax abatement request will be considered on a case-by-case basis in accordance with the procedures and criteria outlined in the application process and approved by the Portage City Council. The duration of the phase-in may span from one to 10 years, at the discretion of the City Council.
To begin the application process, the statement of Benefits Form(s) SB -1/PP for Personal Property or SB-1/RP for Real Property must be completed and electronically submitted to the Portage Economic Development Corporation.
An annual tax abatement report must be filed CF-1. The Portage EDC can provide guidance on how to report.
Real Property Tax Abatement
New buildings constructed are eligible for real property tax abatement. Substantial improvements to existing buildings may be eligible, but it is important to note that only the value of the improvement to the existing building qualifies. It is not permissible to abate property that is already being taxed in Indiana. By State law, land does not qualify for abatement.
Real property tax abatement is calculated on a declining percentage of the increase in assessed value of the improvement.
Personal Property Tax Abatement
Manufacturing equipment, research and development equipment, logistical distribution equipment, or information technology equipment that is new to Indiana is eligible for personal property tax abatement. It is not permissible to abate property that is already being taxed in Indiana.
Personal property tax abatement is a declining percentage of the assessed value of the newly installed manufacturing equipment, research and development equipment, logistical distribution equipment, and/or information technology equipment.
Tax Increment Financing (TIF)
Tax Increment Finance (TIF) is a financial tool available to local counties and municipalities that have created a Redevelopment Commission and an Economic Development Area (EDA). Portage's EDA covers a large part of the city.
The assessed value of an EDA is frozen at the time of creation, with tax revenues from the base assessed value continuing to be shared with the various taxing units (state, county, school, library, municipality, etc.). Tax revenues generated from new assessed value is captured is a fund controlled by the Redevelopment Commission and may be used to benefit the EDA or as direct incentives for businesses operating within the EDA.
Typically an EDA is created for the purpose of redevelopment of infrastructure or to provide direct incentives to a project involving substantial capital investment. Direct incentives are a negotiated process. The Portage EDC can assist with initiating and facilitating potential TIF discussions with the City.
The State of Indiana's incentives are administered through the Indiana Economic Development Corporation (IEDC). If you are not already working with IEDC on your project, Portage EDC looks forward to introducing you to our local IEDC representative.
There are a vast number of state tax credit and exemption programs and grant programs available through the IEDC for new and expanding businesses. Indiana also has a strong focus on workforce development.
Most recent incentives available from IEDC
Additional workforce incentives offered through NextLevel Jobs