City of Fort Wayne Economic Development

Tax Abatement
Click here for printer friendly version

(Back)

What is Tax Abatement?

Tax abatement (tax phase-in) was first authorized by the State in 1977. This gave local government the option of allowing certain businesses to phase-in those new taxes that would otherwise be assessed to their property because of new building construction or the purchase of new equipment for

• manufacturing  

• research and development

• logistical distribution

• information technology  

The types of businesses targeted are those in the manufacturing, warehousing, distribution, commercial and/or service arenas.  Retail and residential facilities are not eligible for tax abatement unless located in specially designated areas. For information on eligibility for tax abatement of retail and residential facilities, click RIZ abatements. 

Tax abatement is a valuable incentive to attract new businesses into the Fort Wayne area. Its major impact, however, is to stimulate reinvestment by existing businesses -- by not penalizing them with a major tax bill when they can least afford it - after having just spent their money for a building and/or manufacturing equipment, or research and development equipment. Because new taxes are phased-in, each year new tax money goes into the community coffers while the businesses retain employees and create new job opportunities for our citizens.   Without this incentive, businesses might not make these capital improvements at all! To be eligible for tax abatement, the business must apply for designation as an Economic Revitalization area (ERA) before beginning the capital improvement.

What is an Economic Revitalization Area?

According to Indiana Law, an Economic Revitalization Area (ERA) is an area within the corporate limits of a city, town, or county which has become

"undesirable for, or impossible of, normal development and occupancy because of lack of development, cessation of growth, deterioration of improvements, or character of occupancy, age, obsolescence, substandard buildings, or other factors which have impaired values or prevented a normal development of property".

How does Tax Phase-In work?

Tax abatement is a two-step process.

1. First, City Council must approve an application to designate property as an Economic Revitalization Area (ERA).

2. Second, the business must make application to the Allen County Auditor for a deduction from taxes authorized by the City Council.

There are two types of tax phase-in: real property (applicable to building construction); and personal property (applicable to new manufacturing machinery and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment). In addition to requirements of the State of Indiana Code, Fort Wayne City Council has set policies regarding the designation of ERAs.

APPLICATIONS

To begin the process, you must correctly complete and submit an approved application form and all required attachments. Forms are available from:

Fort Wayne Department of Economic Development,
Room 840, City-County Building,
Fort Wayne, Indiana 46802-1804.
(260) 427-1127

Application fees are due with the completed application. Applications received after the issuance of an improvement location permit, or after any filings toward a building permit will not be processed.

APPLICATION FEES

Application fees for designation as an Economic Revitalization Area help offset administrative costs. The fee is due at the time of application. It is non-refundable. City Council has established the following fee schedule: