Qualified Employee Deduction
This benefit applies to individual taxpayers who live and work in the Zone.
For the purposes of this deduction, a “qualified employee” is defined the same as it is for the Employee Expense Credit.
- have their principal place of residence in the UEZ in which they are employed;
- perform services, at least 90% of which are directly related to business in the UEZ;
- spend at least 50% of their time working at the UEZ business.
On their Indiana State Income Tax return, Qualified Employees may deduct ½ of their Enterprise Zone income, or $7,500, whichever is less.
The employee’s employer must complete (sign) Schedule IT-40QEC. The employee should attach this form to their State Tax return.