Manufacturing News
October 11, 2026
October 11, 2026 · Boone County · Story 3 of 5
Indiana's 25.8% Industrial Property Tax Jump Sets Up Higher 2027 Bills
Indiana Manufacturers Association President Andrew Berger published new Department of Local Government Finance data on September 24 showing industrial assessed values rose 25.8% statewide in 2026, well ahead of commercial's 15% increase and residential's 7.3%. Boone County alone posted a 956% increase in industrial vacant land value, an outlier large enough that DLGF spokeswoman Jenny Banks says it can distort statewide comparisons. Berger's warning is mechanical, not political.
Indiana Manufacturers Association President Andrew Berger published new Department of Local Government Finance data on September 24 showing industrial assessed values rose 25.8% statewide in 2026, well ahead of commercial's 15% increase and residential's 7.3%. Boone County alone posted a 956% increase in industrial vacant land value, an outlier large enough that DLGF spokeswoman Jenny Banks says it can distort statewide comparisons.
Berger's warning is mechanical, not political. More than 80% of the $1.5 billion in homeowner property tax cuts from 2025's SB 1 has to be offset somewhere, and industrial property is absorbing a large share of that cost. Buried inside SB 1 is a carve-out excluding equipment located in an existing TIF district from the law's new 30% depreciation-floor relief, meaning manufacturers already inside a TIF district for abatement purposes are the least likely to see the relief the law was supposed to deliver.
For your morning huddle
- Q
Do any of our Indiana facilities sit inside an existing TIF district, which would exclude us from SB 1's new 30% depreciation-floor relief on newly purchased equipment?
No. SB 1 excludes equipment located inside an existing tax increment financing district from the new 30% depreciation-floor relief, which means manufacturers already sitting in a TIF district for abatement purposes, often the same plants with the newest capital equipment, are the least likely to see the relief the law was built to deliver. Check your facility's TIF status before you assume the new depreciation floor applies to you.
Briefing note
- Impact
- Berger's real warning is mechanical: more than 80% of the $1.5 billion in homeowner property tax cuts from 2025's SB 1 has to be offset somewhere, and that burden is landing on industrial owners. Buried in SB 1 is a carve-out that excludes equipment inside existing TIF districts from the new 30% depreciation-floor relief, meaning the manufacturers most likely to already sit in a TIF district for abatement purposes are the least likely to get the relief the law was supposed to deliver.
- Watch
- The 2027 legislative session, where further homeowner property tax cuts are expected to be debated and could deepen the shift onto business.
Sources
- Assessed value increases hitting businesses, too · chicagocrusader.com
Earlier coverage
- IURC Eminent Domain for LEAP Transmission Lines Clears Despite OUCC Objection
- Eli Lilly LEAP District: $50B Commitment, Section 232 Is the Engine, and a Construction Labor Crunch Is the Second-Order Problem
- RayzeBio's $173M Whitestown Facility, and the Isotope Supply Risk No One Is Naming
- D-A Lubricant Lebanon: $17M Expansion and What the Capital-to-Jobs Ratio Tells You
- Willoughby Industries: $10M Zionsville Expansion, 100 Jobs at $34/Hour Average
From the brief, October 11, 2026
- Nucor's $105 Million Crawfordsville Expansion
- SEL's $25 Million West Lafayette Vertical-Integration Bet
- Indiana's 25.8% Industrial Property Tax Jump Sets Up Higher 2027 Bills
- Central Indiana Flooding Exposes a Business-Interruption Insurance Gap
- Indiana Joins Even Exchange Program for Veteran CDL Waivers
This story
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