On April 18, the Carmel City Council voted unanimously to approve tax abatements for Blue Horseshoe Solutions, a supply chain logistics company that plans to construct a 11,000-square-foot headquarters on the U.S. 31 corridor at 11590 N Meridian St.
The company plans to invest $3.5 million in a move announced back in March, bringing up to 70 jobs with an average salary of $83,000 to Carmel by 2020. Construction could be complete by early 2017.
Blue Horseshoe plans to install approximately $1,337,228 worth of information technology equipment, which is a depreciable personal property that would normally be subject to property taxes. The Council has now approved tax abatement for that personal property to aid in the acquisition and installation.
The passed resolution states that the project will, “further and promote municipal development objectives by expansion of the property tax base through the purchase and installation of the eligible personal property.” City councilors explain that means that the tax abatement will encourage Blue Horseshoe to further invest in equipment to help grow its company and employee base here in Carmel.
The tax abatement will decrease from 100 percent in year one to 90 percent in year two. Every year will jump down to the next group of tens, meaning a 80 percent tax abatement in year three and 70 percent in year four until there’s no more tax abatement in year eleven.
Companies that receive tax abatement from the city have to provide annual documents to Carmel for review to continue receiving the abatement. In previous years, some companies have lost their tax abatements by failing to file or other conditions.
BLUE HORESEHOE’S TAX ABATEMENT
YEAR OF DEDUCTION / PERCENTAGE OF DEDUCTION
- 1st — 100 percent
- 2nd — 90 percent
- 3rd — 80 percent
- 4th — 70 percent
- 5th — 60 percent
- 6th — 50 percent
- 7th — 40 percent
- 8th — 30 percent
- 9th — 20 percent
- 10th —10 percent
- 11th — 0 percent