Local Incentives Available for New and Expanding Companies in La Porte

Tax Abatement

Tax abatement is available for real and personal property. Real property tax abatement is based on the number of jobs created.

0-9 Jobs	3 Year Abatement
10-24 Jobs	6 Year Abatement
25 or More	10 Year Abatement

For all real property new construction that takes place on the property, the City of La Porte can grant tax abatement on the value of those improvements.

Once granted the real property tax abatement would run for ten years according to the following schedule:

Year 1	100%	Year 6	40%
Year 2	95%	Year 7	30%
Year 3	80%	Year 8	20%
Year 4	65%	Year 9	10%
Year 5	50%	Year 10	5%

Personal property abatement is based on the amount of the investment and the number of jobs created

$5 million investment plus 20 jobs created 10 Year Abatement
Less than $5 million and less than 20 jobs 5 Year Abatement

For all business personal property that is brought to the site, the City of La Porte can grant tax abatement on the value of that equipment. Once granted the personal property tax abatement would run for five years, or ten years if the project exceeds five million dollars of personal property investment, according to the following schedules:

Five Year			Ten Year
Year 1	100%		Year 1	100%	Year 6	70%
Year 2	95%		Year 2	95%	Year 7	55%
Year 3	80%		Year 3	90%	Year 8	40%
Year 4	65%		Year 4	85%	Year 9	30%
Year 5	50%		Year 5	80%	Year 10	25%

Contact:Mary Jane Thomas
City of La Porte
(219) 362-8260

Revolving Loan Fund

Administered by Northern Indiana Regional Planning Commission, this loan is available to new industrial businesses, expanding industrial businesses and commercial and retail ventures. The average size of the loan is $20,000 with a minimum of $5,000 and a maximum of $75,000. The length of the loan is five years for working capital/fixed assets and ten years on real estate. . The interest rates are ¾ of prime and all loans must be secured with sufficient collateral and personal guarantees from borrowers. The loans are approved by a countywide board.
Contact:Janet Cypra
(219) 874-5561

SBA 504 Loan Program

The SBA 504 Loan Program is administered by the NWI Regional Development Company (RDC). RDC is a private non-for-profit certified by the U.S. Small Business Administration. The benefits to the loan include ten year loans on equipment and twenty years on real estate, a fixed interest rate, low down payments (10%). This program is concentrated on helping small business get access to capital thereby creating and retaining jobs and increasing the tax base. To be eligible for this program a company has to have a net worth of less than $7.5 million and have a two year net profit (after tax) of less than $2.5 million
Contact:Tony Rodriguez
(219) 764-2700

Industrial Revenue Bonds

In order to encourage small manufacturing in the US, Congress has permitted manufacturers to borrow money on a tax-exempt basis in order to provide manufacturing facilities. The bonds are issued by local government for the benefit of the manufacturing company. The local government is used as a conduit for the issuance of the Bonds and has not liability in regard to paying back the bond the company is responsible for the debt service. One of the major stipulations on the bond is that it must be used for new manufacturing facilities or new equipment. The exception to this is if a used building is purchased 15% of the proceeds of the bond must be used on rehabilitation of the building. The interest rate on the bond can be 4-5% lower than conventional financing.
Contact:Mary Jane Thomas
City of La Porte
(219) 362-8260

Local Infrastructure

On occasions the local governing entity may be willing to extend infrastructure in order to open up land for development. The governing entity may also spend dollars to improve current infrastructure. This cost may be shared by a developer or manufacturing facility that is locating in a green field area.
Contact: Tim Gropp
(219) 324-8584

Urban Enterprise Zone

There are several advantages to setting up an enterprise zone in a community. First is an inventory tax abatement whereby a business pays no property tax on wholesale or retail merchandise, raw materials, supplies, work in process or finished goods. Second, an individual purchasing an ownership interest in an Enterprise Zone business may be eligible to receive a credit of up to 30% of the purchase price against State tax liability. Third, a qualified business pays no gross income tax on increased receipts earned by operating in an Enterprise Zone. Fourth, an individual or business that pays taxes in Indiana is entitled to a five percent tax credit on interest income from a loan that benefits businesses or residents of an Enterprise Zone. Fifth, a business may apply a credit against adjusted gross income tax liability for wages paid to a person who lives in the Enterprise Zone. Finally, up to $7,500 in qualified wages are exempt from Indiana individual income tax.
Contact: Mary Jane Thomas
City of La Porte
(219) 362-8260