New! Property Tax Deduction (IC 6-1-1-45)
Effective Jan 1, 2006 on investments made between March 1st and February 28
Investment deduction on new real and personal property: Provides a ten-year tax deduction on all new real and personal property in Enterprise Zones. Requires approval by the county auditor. The deduction is available on the increased value of the property. To apply, file Form EZ-2 with Auditor’s office by May 10th each year deduction is claimed. Note that Form 103 must also be attached.
Employment Expense Credit (IC 6-3-3-10)
A business may apply a credit to its gross income tax or adjusted gross income tax liability for wages paid to qualified employees. To claim, file Schedule EZ.
Loan Interest Credit (IC 6-3.1-7)
An individual or business that pays taxes in Indiana is entitled to a 5 percent tax credit on interest income from a loan that benefits businesses or residents of an Enterprise Zone. To qualify, the loan must directly benefit an Enterprise Zone business; increase the assessed value of real property in an Enterprise Zone; or be used to rehabilitate, repair or improve a residence in a Zone. To claim, file Schedule LIC.
The loan interest credit can be applied to reduce the gross income tax, adjusted gross income tax, supplemental net income tax, bank tax, savings and loan association tax and/or the financial institutions tax.
Investment Cost Credit (IC 6-3.1-10)
An individual purchasing an ownership interest in an Enterprise Zone business may be eligible to receive a credit of up to 30 percent of the purchase price against his or her state tax liability. This credit is awarded by application to the Indiana Economic Development Corporation. To apply, contact the Marion Urban Enterprise Association.
New Markets Tax Credit
New Markets Tax Credit available through award of $50 Million in federal tax credits to Community Bankers Association of Indiana to disburse for eligible projects located in qualifying low-income census tracts. Association of Indiana Enterprise Zones was a partner in CBAI's application for the credits.
Business Matching Grants
Matching Grant funds provided to businesses for structural and/or cosmetic improvements to Zone property. Grants are competitive and are awarded on an application basis. If you would like to receive an e-mail notice of matching grant application rounds and other Zone business-related information, click here and request to be added to our Zone business e-mail mailing list.