Incentives for Employers

Tax Incentives

Tax incentives are among the most immediate and powerful economic development incentives offered by the Evansville Urban Enterprise Zone. Tax benefits for employers participating in the Enterprise Zone program include:

Capital Investment Deduction: Enterprise Zone businesses now enjoy deductions for qualifying capital investment in facilities located within the Enterprise Zone. Qualifying capital investments include:

• purchase or construction of a building
• purchase of new manufacturing or production equipment
• costs associated with repair, rehabilitation or modernization of an existing building and related improvements
• onsite infrastructure improvements
• costs associated with retooling existing machinery

Indiana’s inventory tax ended with 2005 filing payable 2006, and the new zone investment deduction began. The deduction was first available for 2006 payable 2007 and can be claimed for as many as 10 years.

Employment Expense Credit: This state program offers tax credits for incremental wages paid by zone businesses to employees who reside in the zone

Click here to view example.

Loan Interest Credit: Also a state tax incentive, this credit allows deductions for interest income earned by a taxpayer from a loan that directly benefits a zone business, increases the value of a zone property, or is used to rehabilitate, repair or improve a zone residence

• Business Commitment of Enterprise Zone Credit Form
• Enterprise Zone Investment Deduction Form (EZ-2 )
• Enterprise Zone Business Registration Form (EZB-R)
  • Enterprise Zone Business Registration Extension Form (EZB-E)
• Schedule EZ Form (1,2,3)
• IT-40 QEC
• 104 Form
• 103 Short Form
• 103 Long Form
• IT-20 Form

Forms require Adobe Acrobat to view. To download Acrobat, click on the icon to the left.