Phasing in taxes offers companies breathing room



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Pictured is the Mays Chemical building on Commerce Drive in Greenwood, Ind. The Mays Chemical company needed a tax abatement from the city of Greenwood so they could afford to build a new building in Greenwood. Greenwood offers tax abatements to companies seeking to relocate to or build in Greenwood.Mike Wolanin / Daily Journal


Pictured is the Mays Chemical building on Commerce Drive in Greenwood, Ind. The Mays Chemical company needed a tax abatement from the city of Greenwood so they could afford to build a new building in Greenwood. Greenwood offers tax abatements to companies seeking to relocate to or build in Greenwood. Mike Wolanin / Daily Journal


Franklin company worked for six months to install and inspect a new piece of equipment before employees could be hired to start making new parts — and money.

A tax break that allowed taxes to be phased in over 10 years was key to making that project financially feasible due to the amount of time that passed between the company’s investment and any profit, Electro-Spec owner Jeff Smith said.

Electro-Spec was buying more than $2 million in machinery, which would add more than 20 jobs for people who would run the new lines. But the purchase, inspections, training and hiring all take time, and during that period the company isn’t making any money from the investment, Smith said. The property tax break helps smooth out the sticker shock of buying the new machines and hiring workers, he said.

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