Reprinted in its entirety from UEA/UEZ releases and the NA Shadow Council blog.
Among the strongest tools for targeted reinvestment in the community are those wielded by the Urban Enterprise Association. The UEA administers the incentives attached to businesses within the Urban Enterprise Zone. All downtown businesses and many commercial properties along Spring, Market, and Vincennes streets are within the Zone.
It's important for you to know if you are in the Zone. Check out the Zone boundaries at http://nauea.blogspot.com to see if your business can directly benefit from its tax deductions and incentives.
If you have, within the past year (2007) purchased a building, land, or machinery, or had any renovation work at a property within the zone, you should apply for 2007 Zone Investment Deductions and Incentives.
The investment must be a "qualified investment," according to UEA Executive Director Mike Ladd. There is a specific list of qualifying expenditures related to an enterprise zone location where a taxpayer's business is located.
A “qualified investment” includes:
(1) The purchase of a building.
(2) The purchase of new manufacturing or production equipment.
(3) Costs associated with the repair, rehabilitation, or modernization of an existing building andrelated improvements.
(4) Onsite infrastructure improvements.
(5) The construction of a new building.
(6) Costs associated with retooling existing machinery.
When filing Indiana Schedule EZ
Parts 1A through 3 are due at the time the Indian State Tax Return is filed.
If, for some reason, the April 15 deadline is missed, file the EZB-E form, requesting a 30-day filing extension. That must be filed by May 15, 2008.
“The Investment Deduction really is the crown jewel the Zone has among the several economic development incentives available to Zone businesses and residents,” says Ladd.
According to Ladd, “The Enterprise Zone Investment Deduction Application (Form EZ-2) must be filed with the County Auditor between March 1st and May 10th of each year.” Once the form is filed, the County Auditor must notify the applicant of their determination by August 15th of the assessment year. Ladd tells us that “if the applicant is in disagreement of the Auditor’s determination, a complaint must be filed within forty-five (45 days) of the notification in the office of the clerk of the circuit or superior court.”
Ladd also notes that “If the form includes a deduction claim for personal property, a copy of the current assessment year Business Tangible Personal Property Assessment return (Form 102 or 103) must be attached.” This form and a personal property tax return are confidential pursuant to IC 6-1.1-35-9.
“This form is required to be filed each year a deduction is claimed even if no new equipment is acquired in that assessment year,” Mike reports.
Questions can be addressed to the Department of Local Government Finance at (317) 232-3777 or www.in.gov/dlgf/.
To find out if you are in the Enterprise Zone, go to nauea.blogspot.com and view the map, or call 812.944.3454.
The Enterprise Association board of directors is made up of Daniel Meyer, Brenda Scharlow, Ron McKulick, Larry Brumley, Robert Norwood, Roger Baylor, Carl Malysz, Steve Price, Al Goodman and Robert Norrington. The Executive Director is Michael C. Ladd.
Important filing deadlines follow:
IMPORTANT FILING DATES FOR
NEW ALBANY URBAN ENTERPRISE ZONE BUSINESSES
April 15 - Indiana Schedule EZ Parts 1A through 3 for Year 2007 are due with your State return. The Indiana Department of Revenue in cooperation with the IRS approves extensions.
May 9 - Deadline for filing Form EZ-2, accompanied by a copy of the current year Business Tangible Personal Property Assessment Return (Form 102 or 103). File in duplicate with the Floyd County Auditor for new personal and real property investments taxable as of March 1, 2008.
May 15 - Deadline to request an extension of up to 30 days to file Year 2008 Business Tangible Personal Property Assessment Return (Form 102 or 103) from the Township Assessor.
June 1 - Latest postmark date for the mailing of the completed calendar year 2007 EZB-R to the Indiana Economic Development Corporation.
June 1 - Latest postmark date to file the up to 45-day registration extension form, EZB-E, with the Indiana Economic Development Corporation.
June 13 - With a copy of the approved extension from the Township Assessor, Form 102 or 103 due to the Floyd County Auditor.
July 15 - With a copy of the approved extension letter, Form EZB-R is due to the Indiana Economic Development Corporation.
3 comments:
Oddly enough, there's a gaping hole right around our house (on E 9th), which would make any and all restoration work we've done ineligible. It has a shape that looks to have been done with a purpose, anyone know that purpose?
UEA deductions are for commercial property. There are additional benefits, however, to residents, all related to payroll if you work inside the zone. An employer in the zone who employs a worker who lives in the zone has a double benefit.
One can only guess that the exclusion had to do with a single property owner desire to be excluded, or a determination that your block would "never" be a commercial area. I'd bet the Masonic lodge is excluded, too.
UEA deductions apply to residential improvements as well. This changed two years ago with the new Investment Deduction. I have the forms if you're interested and can put you in touch with the people at the state who will make the final determination.
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