Tax Incentives
The list of Tax Incentives and their content are:
Form EZ Deduction IC 6-1.1-20.8
A business pays no property tax on wholesale or retail resale merchandise, raw materials, supplies, work in process or finished goods.
To claim the inventory tax abatement, a business must:
Report business inventory on an annual personal property tax return (Form 103 and Form 104). The form must be filed by May 15 with the Township Assessor unless an extension of up to 30 days is granted in writing.
File Form EZ-1 to obtain inventory tax abatement. Form EZ-1 must be filed with the County Auditor by May 15.
The county auditor will inform the business in writing by August 15 if the credit is allowed. Approved credits will be applied to property tax bills in May and November.
Contact the County Auditor where your business is located to obtain Form EZ-1 and Forms 103 and 104.
EMPLOYEE TAX DEDUCTION IC 6-3-2-8
The employee tax deduction means that a qualified employee's wages, up to $7,500, are exempt from Indiana individual income tax.
A "qualified employee" is one who lives in the Enterprise Zone and works 50 percent of his or her time in the Enterprise zone and has at least 90 percent of his or her services directly related to the employer's facility in the Enterprise zone.
For an employee to claim the employee tax deduction:
The employer will provide the employee with Form IT-40 QEC, which indicates the wages the employee has earned in the Enterprise Zone.
The employee will attach Schedule IT-40 QEC to his or her Indiana Individual Income Tax Return
Also, there will be a list of requirements for business to quality for Enterprise Zone Tax Incentives. These are text descriptions will links to further documentations and forms that are available online. The requirements are:
Enterprise Zone Business Registration (EZB-R)
Any business that accesses at least one of the incentives must file an Enterprise Zone Business Registration (EZB-R) form each year. This form MUST be postmarked no later than June 1 in the year it is due. The information provided is for the previous calendar year. If a business feels it cannot complete and submit the form on time; it can file an Enterprise Zone Business Extension (EZB-R) form that also MUST be postmarked no later than June 1 in the year it is due. If a business receives an approved extension from the Indiana State Enterprise Zone Board, it MUST submit their EZB-R postmarked no later than July 16 in the year it is due (Indiana Code does not allow exceptions).
Registration Fee: In addition to an EZB-R, any business whose tax savings exceed $1,000 must submit a 1% registration fee to the Indiana State Enterprise Zone board for administration purposes. (Example: business saves $5,000; registration fee is $50) (IC 4-4-6.1-2)
Reinvestment Requirements: As a participant of the program, a business is require to reinvest all of its tax savings (Except for the registration fee) into its property or employees in the zone. (IC 4-4-6.1-2)
Remain Open for Business: As a participant of the program, a business must remain open and operating as a zone Business for twelve (12) months of the assessment year for which the incentive is claimed. (IC 4-4-6.1-2)
Contribute to Local Urban Enterprise Association: The business must contribute to the local UEA a percentage of its savings. This percent is set by the local city council. Please check with the UEA to find out the percentage. (IC4-4-6.1-2)
Other: A business located outside of Indiana that relocates or locates in an Indiana enterprise zone may do so and access the incentives available. An Indiana business that locates in a zone may do the same. However, an Indiana business that relocates from a non-zone area in Indiana to a zone area must go through a relocation hearing and provide documentation as to why the relocation was necessary.
The following is a list of Tax Incentive applications Forms: