2019 Indiana Code
Title 6. Taxation
Article 1.1. Property Taxes
Chapter 40. Maritime Opportunity Districts
6-1.1-40-10. Deduction for manufacturing equipment
Sec. 10. (a) The deduction under this section applies only to new manufacturing equipment installed before July 1, 2018.
(b) Subject to subsection (e), an owner of new manufacturing equipment whose statement of benefits is approved is entitled to a deduction from the assessed value of that equipment for a period of ten (10) years. Except as provided in subsections (c) and (d), and subject to subsection (e) and section 14 of this chapter, 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. Subject to subsection (e) and section 14 of this chapter, 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% | ||
(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 (b) apply in the subsequent years to the amount of deduction that was allowed in the first year.
(e) For purposes of subsection (b), the assessed value of new manufacturing equipment that is part of an owner's assessable depreciable personal property in a single taxing district subject to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 is the product of:
(1) the assessed value of the equipment (excluding equipment installed after June 30, 2018) determined without regard to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9; multiplied by
(2) the quotient of:
(A) the amount of the valuation limitation determined under 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 for all of the owner's depreciable personal property in the taxing district; divided by
(B) the total true tax value of all of the owner's depreciable personal property in the taxing district that is subject to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9 determined:
(i) under the depreciation schedules in the rules of the department of local government finance before any adjustment for abnormal obsolescence; and
(ii) without regard to the valuation limitation in 50 IAC 4.2-4-9 or 50 IAC 5.1-6-9.
As added by P.L.62-1988, SEC.1. Amended by P.L.154-2006, SEC.59; P.L.219-2007, SEC.84; P.L.146-2008, SEC.300; P.L.212-2018(ss), SEC.16.
