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 of each year. 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|