Property tax abatement approved for Hoosier Tank and Manufacturing
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The South Bend Common Council has designated the Hoosier Tank and Manufacturing site near South Bend International Airport an economic revitalization area and also agreed to a tax abatement proposal.
With expansion plans underway, the five-year personal property abatement will enable the company, which manufactures steel air reservoirs for the heavy duty truck and trailer market, to invest in its operations and add more than a dozen jobs.
Per the agreement, Hoosier Tank and Manufacturing will invest no less than $4 million in new equipment to expand production at its 100,000-square-foot facility at 1710 North Sheridan Street. The company currently operates three high-efficiency assembly lines that can churn out 850,000 tanks per year.
The company plans to hire at least 15 new full-time employees by the end of 2027, with an expected annual payroll increase of at least $780,000. Hoosier Tank currently employs 112 people.
The economic revitalization area designation is set to expire December 31, 2027. If the city determines that any of the terms have been violated, the Common Council has the power to revoke the designation prematurely.
The city’s business development manager, Mark Bemenderfer, estimates that over the next five years, the company will only be assessed about $92,000 in taxes and will save $227,000 because of the abatement.
Following the end of the abatement period, the city projects the company will bring in almost $140,000 in new taxes. Hoosier Tank and Manufacturing previously paid about $90,000 in taxes annually, Bemenderfer said.