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Tax abatements are offered by many communities in the form of deductions from assessed valuation or exemptions.

Generally property owners making improvements to the real property or installing new manufacturing and/or research and development equipment is eligible for real and/or tangible property tax abatement.

Property owners must apply for designation to the local governing body, usually the town board, city council, county council, or the metropolitan development commission having jurisdiction over the area. States with tangible property taxes may also include new and used equipment used in production or manufacturing. Many states do not allow equipment not used in direct production such as office equipment for abatement.

A governing body or political subdivision may “abate” all or a portion of its real property tax or tangible property tax for economic development purposes, usually subject to a duration limit and a limit on the amount of abatements. The “abatement” can be:

  • A rebate of property taxes to the property owner
  • A reallocation of taxes to pay bondholders
  • A reallocation of taxes to pay for public infrastructure costs
  • A deferment of property taxes

The “abatement” can be for:

  • New or used manufacturing equipment
  • Research and development equipment
  • Pollution control equipment
  • Real property improvements
  • Land

Incentis Group professionals structure incentives packages ensuring all possible incentive opportunities are considered and that creative ideas are presented directly to federal, state, and local economic development officials. Our professionals have secured hundreds of millions of dollars of benefits for companies, reducing start-up, expansion, consolidation, and on-going operating costs.

incentis Group professionals are available to answer your questions pertaining to your local community or your specific projects. Please use the request form.