Carroll County Wants Your Business!
We’ll work hard for you and offer competitive packages with state and local incentives to meet your needs! Give us a call.
Property Tax Abatement
Carroll County offers tax abatements for periods up to ten (10) years on increased tax assessments as a result of improvements made to real property. A ten (10) year partial tax abatement may also be available for increased business personal property as a result of the installation of new manufacturing equipment. This equipment must be used in the direct production, manufacture fabrication, assembly, extraction, mining, processing, refining or finishing of other tangible personal property.
Tax abatements in each instance, are allowable only within areas designated as “Economic Revitalization Areas.”
Economic Revitalization Area designation:
Under Public Law (I.C.6-1.1-12.1-1, as amended), Carroll County may designate geographic areas of the county Economic Revitalization Areas. An Economic Revitalization area must have “become undesirable for, or impossible of, normal development and occupancy” due to a factor such as:
- lack of development
- cessation of growth
- deterioration of improvements or character of occupancy, age, obsolescence, substandard buildings
- other factors that have impaired values or prevents a normal development of property
- an area with a facility in danger of losing either employment or tax revenues to the county as a result of impending economic or energy obsolescence.
Tax Increment Financing
Tax Increment Financing (TIF) provides for the temporary allocation to redevelopment or economic districts of increased tax proceeds in an allocation area generated by increases in assessed value. Thus, TIF permits cities, towns, or counties to use increased tax revenues stimulated by redevelopment or economic development to pay for the capital improvements needed to induce the redevelopment or economic development.
- The use of TIF is initiated by the declaration of a tax allocation area by a county, city, or town Redevelopment Commission.
- Property tax assessments are frozen at pre-development levels in the allocation area.
- Municipal bonds are then issued to finance the public improvements.
- As property values in the allocation area increase as a result of new development, the increment in tax revenues is used to meet debt service on issued bonds.
- Once the bonds have been paid off, the taxes collected from the allocation area are distributed to the remaining taxing districts.
Bonds payable from TIF may be used to finance the cost of redevelopment and the construction of public improvements in the redevelopment area or for projects that directly serve or benefit that area. Proceeds may also be used for training.
Bond amounts are determined by the size of the project and the amount of the increment available. The 1992 General Assembly passed legislation allowing depreciable personal property (machinery and equipment) to be used in computing the increment in addition to real property.
Community Revitalization Enhancement District (CRED)
Special incentive packages are offered to private entities based on the capturing of incremental sales tax and / or state income tax.
A taxpayer is entitled to a credit against the taxpayer's state and local tax liability for a taxable year if the taxpayer makes a qualified investment in that year. The amount of the credit to which a taxpayer is entitled is the qualified investment made by the taxpayer during the taxable year multiplied by twenty-five percent (25%). A taxpayer may assign any part of the credit to which the taxpayer is entitled to a lessee of property redeveloped or rehabilitated.