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Anyone who lives in the enterprise
zone and works for any business, government or
non-profit located in the enterprise zone may be
entitled to a state income tax deduction. See below for
details or consult your tax advisor or the LUEA.
What
is it?
Qualified employees who live and work in the zone at
least 50% of the time and 90% of the job is related to
the zone business (any business, government or
non-profit located in the zone) are entitled to a state tax deduction.
Employees may deduct one half (1/2) of their income
earned, up to $7,500, whichever is less. At the current
tax rate this could be up to $255. Wages up to $15,000
annually receive the benefit.
Because businesses receive benefits from employing
zone residents, zone residents should benefit from increased
employment opportunities. Residents should also receive
indirect benefits from the incentives received by individuals
and businesses. Since all tax savings must be reinvested
in the zone business or the zone community, residents
will benefit from an enhanced quality of life.
How
to claim it?
Attach Form IT-40 QEC
from your employer to your tax return and enter amount
as "Other Indiana Deduction," Line F.
Special
eligibility note
Zone residents claiming this benefit do not pay registration
fees.
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