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Allen County is expected to see more than $543 million in investments from five companies approved for tax breaks last year, according to a Department of Planning Services report.
The department submitted its annual tax abatement report to the Allen County Council on Wednesday, which includes data from businesses in unincorporated Allen County, New Haven, Grabill and Woodburn. These cities and towns are included because they have service contracts for planning services to administer the county’s tax abatement program.
The tax abatement is intended to encourage businesses to expand or develop investments in the region by gradually reducing property taxes over up to 10 years. Not all City Council members support tax cuts.
General Motors, the largest investor in the five deals approved by Congress last year, is expected to invest $468 million, according to the report.
The return on investment to the community is calculated by the taxes that businesses are expected to pay through real estate or personal assets by the end of the phase-in tax. The reduction period within a county can range from 3 to 10 years.
Last year, General Motors was approved for a 10-year tax exemption on personal property to support production of new next-generation full-size trucks. The cuts will save the company more than $24.4 million, according to the report. The agreement was unusual because property taxes are not phased in and do not have to be paid over the entire period.
A real estate and personal property tax exemption for WaterFurnace International Inc., 9000 Conservation Way, was approved 4-1-1 at Wednesday’s meeting, saving the company nearly 50% in taxes over 10 years. Become. City Councilman Josh Hale, 1st Republican. Tom Harris, R-2. Paul Lagemann, R-3rd place; And Republican Capt. Kyle Curley supported passage of the request. City Councilman Bob Armstrong (Republican, Major) was absent, and City Councilman Don Wyss (Republican, 4th Place) abstained due to a conflict of interest.
Councilman Ken Freese (R-At-Large) voted against the abatement because county residents’ property taxes have already been increased to fund the Southwest Allen County Fire Protection District.
County commissioners last year created four more fire districts to cover emergency services in the desert. The City Council approved increasing property taxes to fund the district.
Freese said he was not opposed to the company receiving a reduction. But since Water Furnace is within the new Southwest Fire District, he felt it was unfair to deduct more than $1 million from the company’s tax liability after increasing taxes on local residents.
In October, the City Council approved a 68.59 cents per $100 assessed value increase in property taxes in the southwest area designated for fire protection.
WaterFurnace International manufactures geothermal heating and cooling units. The proposed tax abatement is to build a 179,000 square foot expansion facility for additional warehouse, testing lab and manufacturing space.
WaterFurnace is estimated to invest more than $1 million, nearly $11,000 more than the savings. The project will add 19 new positions to the current 298 positions.
Lagemann said he is currently working on developing new rubrics for tax breaks and other programs.
“The fire department most impacted by our mitigation system is the Southwest Fire District,” he said.
Increasing tax breaks within a district reduces funding for fire districts and requires higher property taxes.
Of the five cuts approved last year, four are in the Southwest Fire District: General Motors, SH America, Fuzztech Industrial Solutions and Northern Indiana Anodized.
SH America, an electric vehicle battery cap factory, is estimated to save more than $3.2 million during the 10-year tax abatement period, while investing $61.5 million, according to the report. The project will create 400 new jobs once the facility on Hitsfield Road in Roanoke is complete.
Fuzztech Industrial Solutions estimates it will invest more than $5.5 million and save more than $420,000 in property taxes over a 10-year tax abatement period after relocating north of its sister company Northern Indiana Anodize Co. on Bluffton Road. It has been. The building safety guard manufacturer plans to retain its current 28 employees and add 15 more.
The Northern Indiana Anodization Act provides a seven-year tax abatement program for manufacturing and information technology equipment. He estimated that he will invest more than $4.4 million in this aluminum finishing equipment and save more than $110,000 in taxes. The project will create 25 new jobs while retaining 91 jobs.
One of last year’s tax breaks is not in the Southwest Fire District. QuikCut, a steel manufacturer in Adams Township, invested his $3.5 million during a 10-year equipment tax abatement period and is estimated to save more than $140,000 in taxes.
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