Enterprise zone employers; exemption from deduction
Sec. 8. (a) For purposes of this section, "qualified employee"
means an individual who is employed by a taxpayer, a pass through
entity, an employer exempt from adjusted gross income tax (IC 6-3-1
through IC 6-3-7) under IC 6-3-2-2.8(3), IC 6-3-2-2.8(4), or
IC 6-3-2-2.8(5), a nonprofit entity, the state, a political subdivision
of the state, or the United States government and who:
(1) has the employee's principal place of residence in the
enterprise zone in which the employee is employed;
(2) performs services for the taxpayer, the employer, the
nonprofit entity, the state, the political subdivision, or the
United States government, ninety percent (90%) of which are
directly related to:
(A) the conduct of the taxpayer's or employer's trade or
business; or
(B) the activities of the nonprofit entity, the state, the
political subdivision, or the United States government;
that is located in an enterprise zone; and
(3) performs at least fifty percent (50%) of the employee's
service for the taxpayer or employer during the taxable year in
the enterprise zone.
(b) For purposes of this section, "pass through entity" means a:
(1) corporation that is exempt from the adjusted gross income
tax under IC 6-3-2-2.8(2);
(2) partnership;
(3) trust;
(4) limited liability company; or
(5) limited liability partnership.
(c) Except as provided in subsection (d), a qualified employee is
entitled to a deduction from his adjusted gross income in each
taxable year in the amount of the lesser of:
(1) one-half (1/2) of his adjusted gross income for the taxable
year that he earns as a qualified employee; or
(2) seven thousand five hundred dollars ($7,500).
(d) No qualified employee is entitled to a deduction under this
section for a taxable year that begins after the termination of the
enterprise zone in which he resides.
As added by P.L.23-1983, SEC.11. Amended by P.L.9-1986, SEC.5;
P.L.289-2001, SEC.12; P.L.269-2003, SEC.4.
Last modified: May 28, 2006