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Committee extends tax-abatement window for Verbio ethanol modernization amid federal guidance delays

South Bend City Council (committee meetings) · October 28, 2025

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Summary

Community Investment Committee voted unanimously to forward two reconfirming resolutions (Bills 2542 and 2543) that extend the designation period for tax abatements for Verbio North America's South Bend ethanol modernization project from 2026 to 2030, citing delays in DOE/IRS guidance for federal tax credits.

The Community Investment Committee unanimously recommended that the full council adopt two reconfirming resolutions (Bills 2542 and 2543) to extend the designation period for tax abatements granted in 2023 to Verbio North America’s South Bend ethanol modernization project.

Eric Glavich, director of Growth and Opportunity, told the committee the two bills "reconfirm personal property and real property tax abatement granted by the common council in 2023" and that the principal change is to "change the designation period from the 2026 to the 2030." He said the change is requested because the company cannot complete the project and qualify for federal production tax credits without guidance from the Department of Energy and the IRS.

Greg Northrop, president and CEO of Verbio North America, described the federal delay: "We were notified by the Department of Energy and IRS that they would not issue guidelines until May 2026 ..." He said Verbio has invested about $20,000,000 to date, has increased employment at the plant from 61 to about 80, and expects it may not receive the necessary provisional emissions-rate approvals until 2027 or later. The company estimates up to $220,000,000 in eligible equipment and an estimated $20,000,000 in personal property taxes after full installation; early abatements were structured around those investments.

Glavich noted that, under the original 2023 approvals, the designation period would expire in 2026, which could precede federal approvals needed for qualifying the equipment for tax credits. The reconfirming resolutions explicitly restate the findings the council made in 2023 and update the designation period to 2030 to allow the project time to complete federal approvals.

Committee members asked for clarifications about the timeline, tank construction and the company’s current investments. Northrop said foundations and nine of the planned tanks are already in place, that construction on three additional tanks is planned for spring, and that the company may finish the remaining work once federal guidance arrives.

No members of the public spoke for or against the bills during the public hearing. The committee recorded unanimous roll-call support and will forward Bills 2542 and 2543 to the full council with favorable recommendations.