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Council approves five‑year tax abatement for Astimo Muncie site
Summary
The Muncie City Council adopted Resolution 9‑26 on July 6, 2026, approving a five‑year phased tax abatement for Astimo’s Muncie plant tied to roughly $9.4 million in new manufacturing equipment; staff said the expansion would retain 188 jobs and add nine, and that the Airpark TIF would receive the projected new tax increment.
The Muncie City Council on July 6 adopted Resolution 9‑26, approving a five‑year phased tax abatement for a proposed $9,400,000 investment in new manufacturing equipment at the Astimo Muncie site.
Economic development staff told the council the proposed abatement applies to business personal property and uses a five‑year phased deduction schedule (100%, 80%, 60%, 40%, 20%). Staff estimated the investment would generate about $304,564 in new tax increment that will flow to the Airpark TIF district and would yield company savings of roughly $259,668 over the five‑year period. Tracy Lutton of the Economic Development Alliance of Muncie and Delaware County said the calculations reflect recent Indiana legislative changes to depreciation and exemptions.
Kevin Mulhern, site lead for Astimo Muncie, described the plant as a roughly 100,000‑square‑foot facility on 20 acres that builds intake manifolds and related powertrain components. Mulhern said the site employs 188 associates, of whom about 69.7% are Muncie residents, and that the immediate abatement request would support equipment for new injection molding and assembly capacity. "We're expecting the V‑6 intake move by the end of FY28," Mulhern said, adding that if additional business is awarded the site could add substantially more workers.
Council members pressed on compliance and benefits to the community. Staff confirmed an annual filing requirement and said the council has authority to rescind the abatement if obligations are not met. On wages, Mulhern said the new hires would fall within the wage ranges listed on the application, and that management and supervisory salaries were not included in the average wage calculation presented.
After questions and public comment, the council adopted Resolution 9‑26 by roll call. Council committee members had issued a favorable advisory recommendation earlier in the meeting to forward the request to the full council, with the committee chair noting the recommendation was subject to annual compliance reporting and any legal requirements.
Next steps: the company will appear before the full council with a formal statement of benefits as part of the legal process, and staff said they will provide detailed year‑by‑year breakdowns of the abatement schedule upon request.
