October 29th 2020
Starch manufacturer seeks $2.6M tax break for expansion plans.
An Indianapolis City-County Council committee has advanced a $2.6 million tax abatement request for a starch and sweetener producer that plans to expand the capacity of its facility southwest of downtown.
Chicago-based Ingredion Inc. plans to spend about $60 million to expand its operations at 1515 Drover St., allowing it to add 22,000 metric tons of capacity to meet customer demand. The company manufactures starches, sweeteners, animal feed products and edible corn oil.
The company does not plan to add any jobs but will retain 374 employees who earn an average hourly wage of $33.92. Ingredion expects to dedicate approximately 5% of its abatement savings toward a job training initiative that will increase maintenance technicians’ skill sets.
The company said the expansion is necessary to keep up with North American and global competition for “clean-label” starches, which typically means free from chemical modification.
The project, which has already begun, will play out in phases through 2024. The expansion is taking place within the facility’s existing footprint.
The company has requested a five-year personal property tax abatement. In year one, the abatement would save the company 100%; 80% in year two; 60% in year three; 40% in year four and 20% in the fifth and final year.
The abatement would save the company about $2.6 million over the five-year period. After the tax abatement expires, Ingredion is expected to pay an estimated $2.8 million in personal property taxes annually on the new equipment.
The Metropolitan and Economic Development Committee approved the tax abatement request on Monday night. It now advances to the full city-County Council, which next meets Nov. 16.