Business Incentives & Forms
In order for an East Chicago Enterprise Zone business to take advantage of any Enterprise Zone tax credit, the business must file an Enterprise Zone Business Registration (EZB-R) form annually. The registration form must be filed online no later than June 1st of each year.
Below are the forms your business will need to file annually in order to participate in the Enterprise Zone Program. Businesses must strictly adhere to the deadline dates by which the forms must be filed. As dates may change annually; ECUEA recommends visiting this site and reviewing the forms annually.
EMPLOYEE WAGE DEDUCTION (IC 6-3-2-8) Schedule IT40-QEC - Issue to employees by Jan 31 annually
An income tax deduction is available for qualified employees of an enterprise zone business. The qualified employee is an individual who is employed by an Enterprise Zone business taxpayer or a pass-through entity and whose principal place of residence is in the Enterprise Zone where the employee is employed. The employee must perform services for the employer, at least 90% percent of which are directly related to the conduct of the taxpayer’s business that is located in the enterprise zone. The employee must perform at least 50% of his service for the taxpayer during the taxable year in the enterprise zone.
Employers must complete and provide eligible employees a Schedule IT-40 QEC by January 31st annually. The IT-40 QEC must be filed with the employee’s State individual income tax return.
INVESTMENT DEDUCTION CREDIT (IC 6-1.1-45-10) - Form EZ-2 - File between Jan 1-May 15 annually
Enterprise Zone Investment Deduction
A property tax deduction is available for the increased value of an EZ business property due to real and personal property investment by the EZ business. The Enterprise Zone Investment Deduction allows participating Enterprise Zone Businesses to take a ten year State of Indiana, Lake County tax deduction. The deduction can be taken on the increased value of real or personal property investment on the following qualified investments:
- Purchase of an existing building
- Construction of a new building
- Repair, rehabilitation or modernization of an existing building
- Onsite infrastructure improvement
- Purchase of new manufacturing or production equipment
- Retooling of existing machinery
In order for an Enterprise Zone business to obtain the deduction, an Enterprise Zone Investment Deduction Application must be completed and filed with the Lake County Auditor between January 1 and May 15 of the assessment year.
ENTERPRISE ZONE BUSINESS REGISTRATION FORM (IC 5-58-15-7) Form EZB-R - File by June 1 annually
Businesses must file an Enterprise Zone Business Registration Form (EZB-R) with the Indiana Economic Development Corporation (IEDC) no later than June 1st annually to claim tax savings and stay in good standing with the Enterprise Zone program.
Beginning in 2017, IEDC is requiring the EZB-R be filed electronically at the IEDC Submission Portal. Businesses receiving more than $1,000 in Enterprise Zone tax incentives must pay an annual registration fee (equal to 1 percent of the total tax savings received during the year) to the IEDC to participate in the Enterprise Zone program.
File Electronically: IEDC Submission Portal
EMPLOYMENT EXPENSE CREDIT (6-3-3-10) - Schedule EZ 1, 2, 3 - File with business state tax return
Employment Expense Credit
If a zone business hires a zone resident, that business can take a credit on their state tax liability. This is a state tax credit for incremental wages paid by an EZ business to employees who are EZ residents.
At least 90 percent of the employee’s services must be directly related to the EZ business, and at least 50 percent of the employee’s time must be spent working at the EZ business.
The credit is equal to 10 percent of the additional wages paid to qualified employees during the year, up to $1,500 per qualified employee.
Business Filing Calendar
- January 31
Enterprise Zone Qualified Employee Deduction Certificate, to be distributed to eligible employees for filing with individual employee state income tax returns.
- May 15
Enterprise Zone Investment Deduction Credit deadline filing date with Lake County Auditor’s Office.
- June 1
Enterprise Zone Business Registration Form online filing deadline.