Salem Urban Enterprise Zone

Annual Letter to Existing Salem Urban Enterprise Zone Business Owners, Executives or Managers:

The three tax credits that were available to businesses this past year were the Employment Expense Credit, Enterprise Zone Investment Deduction and Loan Interest Credit. The Employment Expense Credit was available to all zone businesses that had zone employees. The Loan Interest Credit was available to those businesses within the zone, lending money to zone businesses. The Enterprise Zone Investment Credit is available to individuals purchasing an ownership interest in a business in the zone. I certainly hope you took advantage of these credits. Many zone resident employees were allowed a deduction from their personal Indiana state tax return for last year. Those who did not take advantage of these credits are encouraged to discuss the potential benefits with your tax advisor and possibly file an amended return.

For those businesses who took advantage of available tax credits, enclosed is form EZB-R which is required to be completed and submitted by June 1, 2015. The instructions for completing the form are on the back. Part II of the form details the tax savings that your business received. On line 17 is the Total Tax Savings (does not include savings that your employees received with form IT-40QEC).

If your business tax savings totaled more than $1,000, you will need to remit 1% of your total tax savings (enter amount in line 18) to Indiana Economic Development Corporation. Even if your tax savings was not more than $1,000, this form MUST STILL BE FILED. The original EZB-R form and applicable Registration Fee (if any) are to be mailed to:

Indiana Economic Development Corporation
Indiana Enterprise Zone Program
One North Capitol, Suite 700
Indianapolis, IN 46204-2288

On line 19, enter the amount of Financial Compliance to the Salem Urban Enterprise Zone Association. This is calculated at 35% times the Total Tax Savings on line 17. This participation fee and a copy of the form EZB-R are to be mailed no later than June 1, 2015 to:

Salem Urban Enterprise Zone Association
C/O First Savings Bank
1336 South Jackson Street
Salem, IN 47167

The other 64% of your tax savings are required to have been reinvested in YOUR company either through increased zone wages or increased property or plant equipment (which most of you probably did anyway whether you had a tax credit or not). This compliance is shown in part III lines 20-21. Be sure to keep a copy for your records.

Below are some examples to help you understand the fee per tax savings:

Example 1: Tax savings of $500

Total Tax Savings (from Line 17) $500.00  
Registration fee to State Enterprise Zone Board (Line 18) 0.00 Must still file original EZB-R
Participation fee to Salem Urban Enterprise Zone Association 175.00 Send check with copy of EZB-R

Example 2: Tax savings of $2,000

Total Tax Savings (from Line 17) $2000.00  
Registration fee to State Enterprise Zone Board (Line 18) 20.00 Send check with original EZB-R
Participation fee to Salem Urban Enterprise Zone Association 700.00 Send check with copy of for EZB-R

For Urban Enterprise Association membership forms please contact Sabrina Burdine by calling 812.883.8803 or via email at This email address is being protected from spambots. You need JavaScript enabled to view it. 

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Tax Abatements

Washington County Government uses tax abatement as a tool for expanding our local economy.  Tax abatement encourages new investment in our community and helps maintain and increase employment in the community. Tax abatement is also a tool used to encourage redevelopment of deteriorated areas, and/or stimulate investment in specific areas of a community.  Tax abatement is one of the primary incentives available to local government to promote economic development.  

Who is eligible for tax abatement?

Property owners in Economic Revitalization Areas (ERA) are eligible for tax abatements.  To qualify, owners must make improvements to real property, install new manufacturing equipment, logistical equipment, or equipment used in research and development activities devoted directly and exclusively to experimental or laboratory research and development. Tenants in leased facilities can benefit from tax abatement on real property; too, if the property owner applies for the abatement and all other requirements are met.  Also, tenants can benefit from abatements on manufacturing equipment, logistical equipment, information technology equipment, information technology equipment and/or research and development equipment.  

How does tax abatement work?

Property taxes are phased in based on the increased assessed value that results from a new investment.  Due to tax abatement, property taxes cannot be lower than the prior year's taxes.  The phase-in period is determined by the local governmental body (designating body) within the framework of the schedules listed in the Indiana State Statute (IC 6-1.1-12.1).

  • New real estate investment options can have abatement terms from one to a maximum of ten years.
  • New manufacturing equipment, logistical equipment, informational technology equipment and/or research and development equipment options can have abatement terms from one to a maximum of ten years.

To receive the current Washington County tax abatement forms or for more information, please contact the Washington County Economic Growth Partnership office at 812-883-8803.

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Small Business Development Loan Program

Purpose of the Program

The purpose of the Small Business Development Loan Program (SBDLP) is to provide loans and technical assistance to new and emerging Washington County, Indiana businesses while facilitating development and creating or retaining employment possibilities within the community.

Loan Criteria

The decision to approve a loan will be based in large part on the ability of the business to demonstrate that a loan is necessary, that it will have a positive impact on employment, that the business can repay the loan, and that it has proof of sufficient collateral.

Who can borrow?

A loan can be made to a new or existing business located in the boundaries of Washington County, Indiana.  Loans will be available to applicants meeting the definition of "small and emerging private business enterprises" defined as "any private business that will employ 50 or fewer new employees and has less than $1 million in projected gross revenues."  At least 51 percent of the outstanding interest in the applicant must be owned by those who are either citizens of the United States or reside in the United States after being legally admitted for permanent residence.

How much can be borrowed? 

The minimum loan amount is $2,000.  The maximum loan amount is $50,000.  Exceptions to these caps will be considered on a case by case basis by loan committee.

For how long can funds be borrowed?

Loan term will be based on the planned use of funds and the useful life of assets to be acquired, primarily the lesser of seven years or the life of the security.

How can funds be used?

Funds may be borrowed to finance working capital (inventory, receivables, operating capital), and equipment.

What is the interest rate?

Interest rates will be between 0-10%.  Repayments will be made monthly. Payment deferrals will be available for up to 6 months. 

Number of jobs to be created/retained with each project?

The grantee has a goal of creating or retaining at least one full time job to be eligible for up to $10,000 in loan funds from the SBDLP (or $10,000 per job retained or created).

Is technical assistance available?

Yes, WCEGP arranged for several levels of technical assistance geared to the needs of potential borrowers.  New businesses will be expected to participate in a business plan development program and to utilize available resources of the SBDC concerning tax issues, bookkeeping, and marketing.  The area SBDC can provide one-on-one technical assistance to help borrowers with specific challenges they may face in operating their businesses. 

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