Pike County, via the State of Indiana, offers many business tax incentives, corporate tax credits and economic development programs for companies creating new jobs and investment. In addition, Indiana’s corporate income tax is decreasing from the current 6.5% to 4.9% by 2021. As the decrease is phased in, the tax rate will drop each year. Indiana has a flat state corporate tax rate on adjusted gross income and no gross receipts tax or inventory tax.
Local Incentives
Tax Abatement
Tax abatement is offered by the local governmental taxing unit on real property and equipment. Real property can qualify for a three year, seven year or ten year abatement on new buildings and improvements or increases in assessed value on remodeled or renovated structures. Land does not qualify. Manufacturing equipment (new to the State of Indiana) qualifies for a deduction from assessed value over a ten year period. Equipment not used in direct production, such as office equipment, does not qualify. New real estate investments options can have abatement terms from one to a maximum of ten years.
Business Personal Property Taxes
Abatement for used equipment – local governing body may now grant tax abatement for property that was previously used in Indiana. The equipment must be acquired in an arm’s length transaction with an unaffiliated party.
Indiana and Pike County Tax Rates
| Tax | Rate |
|---|---|
| Corporate Adjusted Gross Income Tax | 8.5% (flat rate)* |
| Sales and Use Tax (In manufacturing, the following are exempt from the sales tax: raw materials, equipment, power, electricity, and utilities. Wholesale sales, items used directly in production, and sales made in interstate commerce are exempt. In addition, the purchase of research and development equipment is exempt from the tax.) | 7% |
| Pike County Property Tax | 0.0799% |
| Personal Income Tax | 3.4% of Federal adjusted gross income |