• Enterprise Zone
The purpose of the Enterprise Zone program in the state
of Indiana is to stimulate reinvestment within a designated disadvantaged
zone and to create jobs for zone residents. An enterprise zone may
consist of up to three contiguous square miles. There are 15 enterprise
zones in Indiana. These include zones in Anderson, Bloomington,
East Chicago, Elkhart, Evansville, Fort Wayne, Gary, Hammond, Indianapolis,
Kokomo, Madison, Michigan City, Muncie, Richmond and South Bend.
The Indiana Enterprise Zone Board oversees the enterprise zone programs
in each locality. In order to stimulate reinvestment and create
jobs with the zones, businesses located within an enterprise zone
are eligible for certain tax benefits.
These tax benefits include:
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No
property tax on business inventory. |
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Exemption
from Indiana Gross Income Tax on the increase in receipts
from the base year. |
| • |
State
Income Tax Credit (up to 30 percent of purchase price) for
individuals purchasing an ownership interest in an enterprise
zone business. |
| • |
State
Income Tax Credit on lender interest income (up to 5 percent). |
| • |
State
Income Tax Credit based on wages paid to qualified employees.
The credit is the lesser of 10 percent of the increase in
wages paid over the base year, or $1,500 times the number
of qualified employees. |
| • |
Qualified
employees wages are exempt from State Income Tax. |
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