Lilly seeks $30.6M in tax breaks on downtown projects

Back to TopCommentsE-mailPrintBookmark and Share

Eli Lilly and Co. wants the city of Indianapolis to give it more than $30 million in tax breaks on $400 million in projects that include a new manufacturing facility and improvements to existing operations downtown.
The Metropolitan Development Commission will weigh two Lilly requests for 10-year tax abatements totaling $30.6 million at its meeting at 1 p.m. Wednesday.

Over the last several months, the pharmaceuticals giant has rolled out plans for a manufacturing plant southwest of downtown Indianapolis where the firm will manufacture cartridges for insulin.  

Construction is already under way for the 164,000-square-foot plant on South Harding Street, adjoining Lilly’s existing manufacturing complex known as Lilly Technology Center.

Lilly’s investment in the project is estimated at $320 million. In addition, it is planning a new inspection facility that will add another 30,000 square feet to the project, plus renovations to existing buildings on the Lilly Technology Center campus and to the Lilly Corporate Center. In total, Lilly’s investment is expected to reach $400 million.

As a result of the project, the firm said it will be able to retain 175 Indianapolis employees who will earn an average of $30.96 per hour, according to the abatement requests. Contrary to the request, Lilly spokesman Ed Sagebiel told IBJ the project would involve a combination of existing employees and new workers.

Lilly’s first request is for a 10-year abatement on $133 million in construction and renovations, which would create a real property tax savings of $13.8 million for the firm.

The other request focuses on $267 million in new equipment related to the new operations. The equipment would include cartridge filling and packaging lines, logistics equipment and a backup power supply. The personal property tax abatement would create a savings of $16.8 million for Lilly over 10 years.

Over the 10-year period of the two abatements, Lilly still would pay $25.4 million in taxes on the new construction, renovations and equipment. Once the abatement is over, the firm is expected to pay about $5.2 million in taxes annually on those items.

City development staff has recommended that the commission approve the abatements.

“In staff’s opinion, a project such as this would not be economically feasible without the tax abatement incentive,” according to a staff report to the commission. “Staff believes that the use of tax abatement is an appropriate tool to assist with this project and support continued development within Marion County.”

If the requests are given preliminary approval by the MDC on Wednesday, a public hearing and final approval will be scheduled for the MDC’s meeting on May 1.


  • Let them have it
    I know the title may sound crazy and central Indiana residents hate corporate incentives but this is the point where hoosiers need to really stop and think. Lilly pours a LOT into this state especially through the Lilly Endowment. Through the endowment, they (lilly) has given more than what they are asking for in return (a lot more). All 92 counties benefit from the endowment and people within those counties. Talk about their business, p/l or whatever but the fact remains Lilly has been the pinnacle of corporate citizen.
  • Indy is Lilly
    I am against corporate greed as much as the next person (to the extent I think corporate campaign contributions ought to be illegal---Separation of Corp and State!!, and C-Level salaries ought to be capped at 65 x's average employee wages---as that was the ratio at GM in the 1960s, not the insane 360 x's and more it is now), I digress, but if you want to make the south side grow, you give Lilly everything tax break you can. They are in a brutal industry, and I am sorry, but for all the Eli Lilly haters out there, the unfortuate truth is, as goes Lilly so goes the south side of Indy. You help Lilly as if they were one of your kids is the advice I would give. Don't spoil them, but for goodness sakes, don't get stingy when they are in a growing phase.
  • kinda late!
    Lilly broke ground on this project over a year ago and now, they are asking for an abatement. And city development does not consider this before saying "In staff’s opinion, a project such as this would not be economically feasible without the tax abatement incentive,” Project was already started and the city is arguing that this project would not be done without a tax abatement. Bad behaviour on both the city and Lilly's part.

Post a comment to this story

We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
You are legally responsible for what you post and your anonymity is not guaranteed.
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ
  1. Angela IS the best RD

  2. We are a nation of speed. All of our younger lives are filled with deadlines, quotas and bottom lines. We start to ease out of the pressured rat-race when we finally see "retirement." The most enjoyable travel on the planet is passenger rail service. Indy to Chicago does not beat Megabus or Southwest Airlines in speed. Passenger rail however has the best seating, mammoth legroon, seat backs that recline to more than 45 degrees and employers that really want you to return as a customer. Indiana municipalities need to maintain subsidies to support this transportation mode. Losing it is loss for all of us.

  3. Good day! I just want to testify how i got my loan from Mr. Eric Lefkofsky after i applied several times from various loan lenders who claimed to also testify right in this forum,i thought the testimonies where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan. Until a friend of mine introduce me to this popular Mr. Eric Lefkofsky who promised to help me and indeed he did as he promised without any form of delay. I never thought there are still reliable loan lenders until i met Mr. Eric lefkofsky who indeed helped me with the loan and changed my belief. I promised to share this testimony after I got my loan. I don't know if you are in any way in need of a genuine and urgent loan,free feel to contact Mr. Eric Lefkofsky via their email{grouponfunding@hotmail.com}

  4. Its a THUG issue. Bleecker Street and NYX are thug bars. They attract thugs of all races. Places that attract thugs need to be kicked out of Broad Ripple. Ain't nobody got time for that!

  5. Hello everyone, My name is Marian Gareth, I am from the Texas, United State, am here to testify of how i got my loan from Mr Andre Frank {frankloancompany@yahoo.com} after i applied Two times from various loan lenders who claimed to be lenders right in this forum,i thought their lending where real and i applied but they never gave me loan. I was in need of an urgent loan to start a business and i applied from various loan lenders who promised to help but they never gave me the loan.Until a friend of mine introduce me to Mr Andre Frank the C.E.O of Andre Frank Loan Company who promised to help me with a loan of my desire and he really did as he promised without any form of delay, I never thought there are still reliable loan lenders until i met Mr Andre Frank, who really help me with my loan and changed my lief for better. I don't know if you are in need of an urgent loan, free feel to contact Mr Andre Frank on his email{ Frankloancompany@yahoo.com} for help