Property tax abatement approved for South Bend truck parts manufacturer that's expanding

SOUTH BEND — The South Bend Common Council recently awarded a tax abatement to and designated the site of Hoosier Tank and Manufacturing as an economic revitalization area.

The company, which makes steel air reservoirs for heavy-duty trucks and trailers, has operated at 1710 N. Sheridan St. near the airport since 1991. It plans to expand its production capacity and will receive a five-year personal property tax abatement in exchange for investing in the site.

Currently, the company’s 100,000-square-foot facility has three high-efficiency assembly lines that produce up to 850,000 tanks a year. According to the agreement, Hoosier Tank promises to invest $4 million in the property and on high-tech equipment. The company also plans to hire 15 new full-time employees by the end of 2027. These positions will mean a total of $780,000 in wages every year. Hoosier Tank currently employs 112 people.

The company will receive a 100% property tax abatement for the first year, 90% for the second, 80% for the third, 70% for the fourth and 60% for the fifth year.

At a meeting of the city’s community investment committee on Monday, Mark Bemenderfer, business development manager for the city, said the company currently pays a little under $90,000 in taxes. He said that the city estimates that the company’s investments will generate an additional $320,000 in taxes over five years.

“Of these new tax dollars, around $227,000 will be abated under the terms of this abatement and $92,000 will be assessed,” Bemenderfer said.

The city estimates that the property will generate $139,000 in new taxes in the five years following the abatement period.

This article originally appeared on South Bend Tribune: Property tax abatement approved for South Bend truck parts manufacturer that's expanding