A wide variety of tax programs and benefits are available for Zone residents, businesses and investors in the Marion Urban Enterprise Zone. For more information on the requirements to take part in these tax incentives, view the participation requirement page.

Employee Wage 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. To claim, file Schedule IT-40QEC.

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 State. To apply, contact the Marion Urban Enterprise Association.