In determining whether an applicant is entitled to a deduction for real property improvement projects, the Fort Wayne Common Council shall qualify a designation by:
(A) Limiting the number of years of deduction (abatement) for improvements to real property in areas not designated as an economic development target area to three, five, seven, or ten years, based on the following Review System and corresponding abatement schedules:
TAX ABATEMENT REVIEW SYSTEM—REAL PROPERTY
Points Possible | Points Awarded |
Points Possible | Points Awarded | |
INVESTMENT (30 points possible) | ||
Total New Investment in Real Property (New Structure and/or Rehabilitation) | ||
Over $1,000,000 | 10 | |
$500,000 to $999,999 | 8 | |
$100,000 to $499,999 | 6 | |
Under $100,000 | 4 | |
Investment per employee (both jobs created and retained) | ||
$35,000 or more | 10 | |
$18,500 to $34,999 | 8 | |
$6,250 to $18,499 | 6 | |
$1,250 to $6,249 | 4 | |
Less than $1,249 | 2 | |
Estimated local income taxes generated from jobs retained | ||
$80,000 or more | 5 | |
$30,000 to $79,999 | 4 | |
$10,000 to $29,999 | 3 | |
$5,000 to $9,999 | 2 | |
Less than $5,000 | 1 | |
Estimated local income taxes generated from jobs created (double points for start-up) | ||
$30,000 or more | 5 | |
$10,000 to $29,999 | 4 | |
$5,000 to $9,999 | 3 | |
$3,000 to $4,999 | 2 | |
Less than $3,000 | 1 | |
ECONOMIC BASE (20 points possible) | ||
Location quotient in designated occupation code (use majority occupation code of all created and retained jobs) | ||
Greater than 1.0 | 5 | |
Estimated percent of business done outside Allen County | ||
Greater than 75% | 15 | |
50% to 74% | 10 | |
25% to 49% | 5 | |
JOBS (20 points possible) | ||
Total number of permanent jobs retained | ||
Over 250 | 10 | |
100 to 249 | 8 | |
50 to 99 | 6 | |
25 to 49 | 4 | |
10 to 24 | 2 | |
1 to 9 | 1 | |
Total number of permanent jobs created | ||
Over 100 | 10 | |
50 to 99 | 8 | |
25 to 49 | 6 | |
10 to 24 | 4 | |
1 to 9 | 2 | |
WAGES (20 points possible) | ||
Median salary of the jobs created and/or retained | ||
Over $47,999 | 20 | |
$43,000 to $47,999 | 16 | |
$38,000 to $42,999 | 12 | |
$33,000 to $37,999 | 8 | |
$28,000 to $32,999 | 4 | |
Under $28,000 | 0 | |
BENEFITS (10 points possible) | ||
Major medical plan offered | 7 | |
Pension, tuition reimbursement, life insurance, dental insurance and/or disability insurance offered | 3 | |
SUSTAINABILITY | ||
Construction uses green building techniques (i.e. LEED certification) | 5 | |
Construction uses techniques to minimize impact on combined sewer overflows | 5 | |
TOTALS | ||
LENGTH OF ABATEMENT | ||
20 to 39 points - 3 year abatement | ||
40 to 59 points - 5 year abatement | ||
60 to 69 points - 7 year abatement | ||
70 to 100 points - 10 year abatement | ||
* If average annual salary of the full-time jobs created by listed occupation is 10% or greater than the average salary for Allen County using current occupational employment statistics, and is eligible for a 10 or 7 year abatement, then the applicant is eligible for an alternate deduction schedule | ||
10 Year | ||
Year 1 | 100% | |
Year 2 | 100% | |
Year 3 | 100% | |
Year 4 | 100% | |
Year 5 | 100% | |
Year 6 | 90% | |
Year 7 | 80% | |
Year 8 | 65% | |
Year 9 | 50% | |
Year 10 | 40% | |
7 Year | ||
Year 1 | 100% | |
Year 2 | 100% | |
Year 3 | 100% | |
Year 4 | 100% | |
Year 5 | 100% | |
Year 6 | 71% | |
Year 7 | 43% | |
Notwithstanding the foregoing, when a project is located within a designated economic development target area and not defined as ineligible under § 153.15, then such project may receive a ten year deduction (abatement), without adhering to the Review System.
TAX ABATEMENT SCHEDULES—REAL PROPERTY
Year | Percentage |
Year | Percentage |
(1) Three Year Abatement Schedule | |
1 | 100% |
2 | 66% |
3 | 33% |
(2) Five Year Abatement Schedule | |
1 | 100% |
2 | 80% |
3 | 60% |
4 | 40% |
5 | 20% |
(3) Seven Year Abatement Schedule | |
1 | 100% |
2 | 85% |
3 | 71% |
4 | 57% |
5 | 43% |
6 | 29% |
7 | 14% |
(4) Ten Year Abatement Schedule | |
1 | 100% |
2 | 95% |
3 | 80% |
4 | 65% |
5 | 50% |
6 | 40% |
7 | 30% |
8 | 20% |
9 | 10% |
10 | 5% |
(B) (1) Allowing the owner of an eligible vacant building, a deduction from the assessed value of the building in accordance with the following terms and conditions:
(a) If the vacant building is 50 years or older, the owner of the building shall be entitled to a deduction as long as the building has been vacant for at least one year.
(b) If the vacant building is less than 50 years old, the owner of the building shall be entitled to a deduction as long as the building has been vacant for at least two years.
(c) If the vacant building is located in an Economic Development Target Area, the owner shall be entitled to a deduction as long as the building has been vacant for at least one year and the property is zoned for commercial or industrial use.
(2) The maximum period of a deduction awarded under this section is two years. For deductions approved for one year, the amount of the deduction shall be 100% of the assessed value of the building or part of the building that is occupied by the property owner or tenant of the property owner. For deductions approved for two years, the amount of the deduction shall be 100% of the assessed value of the building or part of the building that is occupied by the property owner or tenant of the property owner in the first year, and 50% of the assessed value of the building or part of the building that is occupied by the property owner or tenant of the property owner in the second year.
(C) Projects involving the redevelopment or rehabilitation of a speculative building may receive a ten-year phased deduction (abatement) without adhering to the city's review system. For purposes of this division, a SPECULATIVE BUILDING is any building development, construction, or rehabilitation of at least 50,000 square feet that is reasonably likely to create new jobs when the developer has no formal commitment from a buyer or tenant to purchase or lease the end product, whether the end product is a fully completed, move-in ready building or a partially completed shell suitable for build-out improvements by the future owner or tenant. Additional incentives for the final build out and personal property (equipment) may be considered upon the identification of the end user. Any additional incentives will adhere to the city's review system for real and personal property abatement at the time of submittal.
(D) Affordable housing projects applying to and meeting the criteria for the Indiana Housing Finance Authority for Low Income Housing Tax Credits are eligible for ten-year phased deduction (abatement) without adhering to the city’s review system. That ten-year phased deduction (abatement) will be as follows:
Year of Deduction | Percentage |
Year of Deduction | Percentage |
1 | 100% |
2 | 100% |
3 | 100% |
4 | 100% |
5 | 100% |
6 | 50% |
7 | 40% |
8 | 30% |
9 | 20% |
10 | 10% |
11 | 0% |
(Ord. G-05-97, passed 4-8-97; Am. Ord. G-23-00, passed 9-12-00; Am. Ord. G-16-08, passed 12-9-08; Am. Ord. G-1-12, passed 12-20- 11; Am. Ord. G-3-13, passed 2-26-13; Am. Ord. G-22-13, passed 10-8-13; Am. Ord. G-2-16, passed 2-9-16; Am. Ord. G-18-17, passed 7-25-17; Am. Ord. G-8-18, passed 4-24-18; Am. Ord. G-29-22, passed 12-13-22)