Saturday, February 8, 2014

Palladium-Item Reports Change in Richmond's Abatement Ordinance Aimed at IT Investment

From the Richmond Palladium-Item:

A change in Richmond’s laws concerning tax abatements will make it easier to attract information technology companies to the city, officials said this week.

The Richmond Common Council voted 8-1 Monday to allow two-year abatements for information technology equipment for projects that create at least 10 new jobs, pay 1.5 times the state minimum wage and provide healthcare benefits for employees.

Council president Clay Miller voted against the ordinance while Jack Elstro, Kelley Cruse-Nicholson, Bruce Wissel, Don Winget, Larry Parker, Misty Hollis, Ron Oler and Phil Quinn voted in favor.

Quinn said the vote gives a clear message to companies looking to locate or expand here.

“This put us at the start of welcoming IT companies. I’m in full support of abating IT,” he said.

Information technology equipment would be considered business personal property tax for tax purposes, and Miller pointed out the Indiana Legislature is considering doing away with that tax.

“I would have preferred holding it until we saw what the Legislature was going to do,” he said. “And I’m just concerned that we may be opening the door to a ton of these requests, and it may become burdensome for council in the future.”