Manufacturing News
October 2, 2026
October 2, 2026 · Statewide · Story 1 of 5
Indiana Industrial Assessed Value Surge Leaves a TIF Depreciation Gap
Berger ties the increase to factory growth, reclassified farmland, and the first update to industrial construction cost tables in four years. New base on the tax roll doesn't raise the bill on your existing plant by itself, and rates and levies get recalculated as values rise. But when industrial value grows three times faster than residential, more of the levy falls on manufacturers wherever the circuit-breaker cap doesn't already limit it.
Senate Bill 1 eliminated Indiana's 30% depreciation floor for equipment placed in service after January 1, 2025, but property inside TIF allocation areas kept that floor. If your plant sits inside a TIF district, equipment you place in service from 2025 forward stops depreciating at 30% once it ages, while a competitor outside the district can write the same machines down further. Ask your county auditor whether your parcel sits in a TIF allocation area, and ask your tax advisor how any abatement you hold interacts with that floor.
- Impact
- The 2025 property tax overhaul (Senate Bill 1 / Public Law 68) eliminated Indiana's 30% depreciation floor for new equipment placed in service after January 1, 2025, but explicitly kept that floor for property inside TIF districts, meaning manufacturers who took TIF-based incentive packages to locate in Indiana are now permanently stuck with the nation's highest depreciation floor on new equipment while competitors outside TIF zones get relief. At the same time, Amazon reported $561 million in state sales and use tax exemptions in 2024-2025 and secured local abatements in St. Joseph and Lake counties, so the same data-center growth driving up industrial AV is partly shielded from the tax hit that traditional manufacturers must absorb in full.
- Watch
- Watch the 2026 legislative session, where further homeowner property tax relief is expected to be debated and could push even more levy burden onto industrial and commercial payers; also watch whether Gov. Braun's June 2026 comments about the assessment system being 'opaque' translate into a 2027 cost-table reform proposal.
- For the huddle
Is my plant inside a TIF district, and does that change how my equipment depreciates?
Check with your county auditor to confirm whether your parcel sits in a TIF allocation area. If it does, equipment placed in service from 2025 forward stops depreciating at the 30% floor once it ages, while a competitor outside the district can write the same machines down further.
From the brief, October 2, 2026
- Indiana Industrial Assessed Value Surge Leaves a TIF Depreciation Gap
- Amazon's Greenwood Robotics Plant Will Recruit Your Welders and CNC Operators
- Derecho and NIPSCO Outage Cost Konrady Plastics a Month of Overtime
- SEL's $25M West Lafayette Expansion
- Meta and Be Pro Be Proud Bring Trades Simulators to Jeffersonville
Related
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- Rolls-Royce's $1B Indianapolis Campus, Indiana's Nuclear MOU for CANDU Reactors, and Cleveland-Cliffs' Burns Harbor Delay: What Indiana Manufacturers Need to Watch
- Indiana Foreign Trade Zone Tariffs Surge, Kratos Breaks Ground Near Crane, and Urschel Names a New President
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