Tax Incentives

By contributing to economic growth in the area, businesses located within the JUEZ are eligible for a number of state tax benefits, such as an investment deduction that allows a Zone business to deduct the increase in assessed value from a qualified investment in real or personal property for up to 10 years.

Taxpayers who purchase an ownership interest in a Zone business may be eligible for a credit on their state tax liability, up to 30% of the total investment. Individuals and corporations may lower their state income tax liability by making investments in the Urban Enterprise Zone. These incentives apply to those purchasing an ownership interest in a Zone Business or making a Qualified Loan. To take advantage of this incentive, investors must contact the Indiana Economic Development Corporation (IEDC) before purchasing an interest in a Zone business.

Residents who live and work within the Zone are also eligible for deduction from their state income taxes. In addition, those who have lived in the Zone for at least 12 months may apply for a scholarship to attend college. The BUEA also supports schools serving Zone residents through the provision of Annual School Technology Grants. Individuals and corporations may lower their state income tax liability by making investments in the Urban Enterprise Zone. These incentives apply to those purchasing an ownership interest in a Zone Business or making a Qualified Loan.

Other pages you may find helpful:

Investment Deduction
Investment Cost Credit
Loan Interest Credit
Qualified Employee Deduction