Henry County, like the other 91 counties in Indiana, uses a tool called “tax abatement” to encourage local factories to bring their operations – and their jobs – here.
A tax abatement is an incentive that temporarily lowers the assessed value of new buildings or new equipment. Lower assessed value (AV) means lower property tax bills the company has to pay each year.
Corey Murphy, the president and CEO of the New Castle-Henry County Economic Development Corp., explained that tax abatement is not just for growing local businesses; it is also used to incentive homeownership.
Every homeowner in Indiana receives a permanent tax abatement through the Homestead Deduction.
The Homestead Deduction reduces the home’s AV by 60 percent or $48,000, whichever is lower. Indiana homeowners can reduce their AV by and additional 25–35 percent through a supplemental deduction.
The Henry County Council approves local tax abatements and monitors reports from those taxpayers through the life of the abatement.
2024 abatements
The Henry County Auditors Office recently released the 2024 abatement report for property tax bills that will be payable in 2025.
There were 10 abatements on personal property (equipment) in 2024 and six on real estate property.
According to Henry County records, a total of $52,194,390 in assessed value (AV) was abated in 2024.
Commercial land has a property tax cap of 2 percent, equating to an overall incentive benefit of about $1,043,888 this year to those local companies.
Personal property
BCW Diversified Inc at 8984 W. Ind. 236, Middletown was in the first year of its three-year abatement and had $153,830 in AV abated.
The Boar's Head Provisions facility on the south side of County Road 400 South, in Franklin Township, was in the eighth year of its 10-year abatement and had $3,084,790 in AV abated.
The Boar’s Head Provisions facility on the north side of County Road 400 South, in Henry Township, was in the third year of its six-year abatement and had $7,186,090 in AV abated.
Boar's Head Provisions also has a personal property abatement on County Road 400 South under the name Frank Brunkhorst Co. LLC. This abatement is in the sixth year of a 10-year agreement and had $206,080 in AV abated.
Grede LLC in New Castle was in the sixth year of a 10-year abatement in 2022 and had $539,120 in assessed value abated.
Holic LLC in Middletown was in the third year of a 10-year abatement and had $390,480 in AV abated.
Indiana Municipal Power Agency was in the first year of a 10-year abatement and had $1,254,810 in AV abated.
Kairos Specialty Metals Corp in Spiceland was in the ninth year of a 10-year abatement and had $6,200 abated.
KVK US Technologies in New Castle was in the ninth year of a 10-year abatement and had $16,480 in AV abated.
TS Tech Indiana in New Castle was in the seventh year of a 10-year abatement and had $10,746,310 in assessed personal property value abated.
The total of all Henry County personal property abatements in 2024 was $23,584,190.
Real estate property
The Boar’s Head Provisions facility on the south side of County Road 400 South, in Franklin Township, was in the eighth year of its 10-year abatement and had $10,568,200 in assessed real estate value abated.
The Boar’s Head Provisions distribution center on County Road 400 South was in the seventh year of its 10-year abatement and had $6,033,000 in real estate AV abated.
The Boar’s Head Provisions facility on the north side of County Road 400 South, address 3995 Brooks Drive, was in the third year of its nine-year abatement and had $5,188,600 in AV abated.
Broadway Street Property LLC at 8984 W. Ind. 236, Middletown, was in the second year of its abatement and had $787,600 in AV abated.
TS Tech at 3800 Brooks Dr., New Castle was in the first year of its 10-year abatement and had $6,032,800 in AV abated.
The total of all Henry County real estate property abatements in 2024 was $28,610,200.
By comparison
In 2022, with tax bills payable in 2023, there were 11 personal property tax abatements totaling $16,593,760.
That same year, there were six real estate property tax abatements totaling $32,169,575
The total assessed value abated in 2022 was $48,763,335.
In 2016, with tax bills payable in 2017, there were six personal property tax abatements totaling $11,896,570 and four real estate tax abatements totaling $2,883,254.
The total assessed value abated in 2016 was $14,779,824.