Enterprise Zone Credit

Enterprise Zone Credits
Certain areas within Indiana have been designated as enterprise zones. Enterprise zones are established to encourage investment and job growth in distressed urban areas. Current enterprise zones are located in portions of the following cities/locations:

Bedford	Grissom Aeroplex	Mitchell
Bloomington	Hammond	New Albany
Connersville	Indiana Army Ammo	Portage
East Chicago	Indianapolis	Richmond
Elkhart	Jeffersonville	Salem
Evansville	Kokomo	South Bend
Fort Harrison	Lafayette	Terre Haute
Fort Wayne	LaPorte	Vincennes
Frankfort	Marion
Gary	Michigan City

The following are eligible to claim the enterprise zone employment expense credit and/or the enterprise zone loan interest credit:

Sole proprietors who operate and/or invest in a business located in a zone, and
Businesses organized as partnerships, S corporations and fiduciaries may pass through enterprise zone credits to their partners or shareholders.

In addition, a partnership, a limited liability partnership, a limited liability company, and an S corporation are entitled to the enterprise zone investment cost credit for a qualified investment made in a designated zone located in Vigo County, Indiana.

Airport Development Zone Credits
Certain areas within Indiana have been designated as airport development zones. These zones are established to encourage investment and job growth in distressed urban areas.

Currently, an airport development zone is established within the City of Gary. Areas within the City of Terre Haute and areas within Allen County are also eligible to designate airport development zones.

Sole Proprietors who operate and/or invest in a business located in a zone may be eligible for the following credits: Enterprise Zone/ Airport Development Zone Loan Interest Credit (Schedule LIC); Employment Expense Credit (Schedule EZ, Parts 1, 2, and 3) and Enterprise Zone/Airport Development Zone Investment Cost Credit. (Note: These forms are also to be used for the airport development zone credits even though the title on the forms indicates only enterprise zones.)

Businesses organized as partnerships, S corporations and fiduciaries are eligible to pass through enterprise zone credits to their partners or shareholders. In addition, a partnership, a limited liability partnership, a limited liability company and an S corporation are entitled to the enterprise zone investment cost credit for a qualified investment made in a designated zone located in Vigo County, Indiana. If the entity has no adjusted gross income tax liability, then the partners and/or shareholders are entitled to claim their share of the credit on their individual income tax return.

Income Tax Information Bulletin #66, EZ Schedules, and Schedule LIC will provide additional information about these credits. You can get the information bulletin and forms by contacting the Department of Revenue. The Department of Commerce can provide additional information about the Enterprise Zone Investment Cost Credit. You may contact the Department of Commerce at: Indiana Department of Commerce, Community Development Division, One North Capitol, Suite 600, Indianapolois, IN 46204, phone (317)232-8911.

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