Once a Zone business pays their local urban enterprise association the percentage do they just “pocket” the remaining tax savings (In Marion, 65%)?
Yes and no. Each business claiming a Zone tax incentive is required by Indiana statute to reinvest 100% of their tax savings. A percentage of that tax savings is “paid out” to the local urban enterprise association. With the exception of one percent being paid to the state if tax savings exceed $1,000, state statute requires the remaining tax savings be reinvested back into that business; however state statute also defines what types of reinvestments can be made with those dollars. In Marion, 97% of Zone business reinvestments have gone into taxable machinery, equipment and property improvement or expansion. The remaining has been used for inventory, increases in wages to Zone residents, security, or other eligible investments.
Related Questions
- How does a business become certified as a "qualified business" in an Urban Enterprise Zone or in an Urban Enterprise Zone-impacted business district?
- Once a Zone business pays their local urban enterprise association the percentage do they just "pocket" the remaining tax savings (In Marion, 65%)?
- When can a business owner obtain tax benefits in an Urban Enterprise Zone or Urban Enterprise Zone impacted business district?
