The City of Fort Wayne’s “Enterprise Zone” designation is for a 3.99 square mile area located in the central part of the City. Enterprise Zone (EZ) designation provides tax benefits to businesses and individuals located within the zone.
As supported by State Enterprise Zone Policy, the UEA requires zone businesses to share a percentage of their tax savings with the UEA to fund projects sponsored by the association.
The Indiana General Assembly requires each enterprise zone business to register with the Indiana Economic Development Corporation (IEDC) on a yearly basis. This registration provides the information regarding tax savings and investment needed to ensure business eligibility.
Each enterprise zone business claiming a tax credit or exemption must file an Enterprise Zone Business Registration form (EZB-R) with the IEDC by June 1 of each year. Beginning in 2017, the IEDC is requiring that all EZB-R and EZB-E forms are submitted electronically. For any business whose total tax savings are greater than $1,000, a registration fee equal to one percent of that savings will be due with that registration. Failure to file the registration form by June 1 of each year will result in disqualification from zone benefits. Disqualified businesses can petition for reinstatement by sending a Petition for Business Reinstatement along with a $100 filing fee to the IEDC. Click here to access the IEDC website to electronically file the EZB-R.
If an enterprise zone business cannot submit the EZB-R by June 1, it must apply for an extention to the IEDC utilizing form EZB-E. Form EZB-E must be filed electronically no later than June 1 using the link above. If an extension is approved, the EZB-R registration form and fees must be electronically filed no later than July 15.
In general, where a business “substantially” reduces its operations or ceases operation at other locations in Indiana in order to relocate in an Indiana Enterprise Zone, the business is not eligible for zone benefits. A “substantial” reduction is a reduction of 25 percent of the average number of goods manufactured, or in the value of services provided, or in the amount of gross income in the year preceding relocation in the EZ and the year following relocation in the EZ, or the lower of a reduction in the average number of employees by 100 or 25 percent, or a 10 percent reduction in the value of stored inventory. For purposes of the substantial reduction test, the 12 month period prior to locating in the EZ should be compared to the 12 month period after locating in the EZ.
EXCEPTIONS: A business may still be eligible for zone benefits if relocation was necessitated by a loss of lease, the unavailability of space to accommodate planned expansion, destruction of the building, or certification that the building is uninhabitable. A business would also qualify for zone benefits if renovation and construction costs at the non-zone location are one and one-half times the cost of purchase, renovation and construction of a facility in an enterprise zone.