Industrial Facilities Exemption
A manufacturer that is purchasing new real property or will be investing in new or expanded real property may qualify for an Industrial Facilities Tax Exemption (IFT). With the elimination of the personal property tax, retroactive to August 2014, an IFT only covers real property. This incentive provides roughly a 50 percent reduction in the tax liability on the newly acquired machinery, equipment, furniture and fixtures and/or the new industrial building or addition.
The property in question must be located in an established Industrial Development District (IDD). The IDD and IFT are both awarded at the discretion of the local community, which also determines the length of the tax abatement, up to a maximum of 12 years. Upon local approval, the State Tax Commission reviews applications and issues an Industrial Facilities Exemption Certificate.