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The Bloomington Urban Enterprise Association (BUEA) offers direct and indirect benefits to those who live within the Enteprise Zone. By helping create jobs in this area, zone residents are able to live, work and shop within the downtown area. In addition, the BUEA provides grants to Monroe County School Corporation (MCCSC) schools that serve children from the zone. To date, the BUEA has provided $150,000 to support technology upgrades at MCCSC schools. If you live within the zone, consider participating in the following programs and tax incentives:

Economic Independence Scholarship

The BUEA Zone Resident Economic Independence Scholarships are designed to help Zone residents achieve a greater degree of economic independence by increasing the availability of educational opportunities. Zone residents are eligible to receive up to $1,200 over their lifetime to take classes that will aid in furthering their economic opportunities.

To be eligible, residents must be financially independent and have lived in the zone for at least 12 months before applying. To apply, submit a completed application (PDF 51.94 KB), along with proof of residency, and a course description from the institution delivering the class, to the BUEA for review. The Board of Directors allots limited funding to this program, so applicants will be approved or denied on a first-come, first-served basis, until all allotted funding has been spent. Approved applicants will be notified by mail within ten days of receipt the application and payment will be made directly to the institution providing the class.

Employee Wage Deduction

Zone residents are entitled to deduct a portion of their taxable income for state tax purposes if they work 50% of their time in the Enterprise Zone and have at least 90% of their services directly related to the employer's facility in the enterprise zone.

The annual tax deduction is one half adjusted gross income or $7,500, whichever is less. The deduction is claimed by attaching a the form IT-40QEC (PDF 177.41 KB) to Indiana income tax returns. You should provide your employer with this form, which they should complete in connection with your W-2.

EXAMPLE: Potential Income Tax Savings

Employee A:

Qualified for Zone Benefits

Employee B:

Not Qualified for Zone Benefits

Indiana Taxable Income

$15,000

$15,000

Employee Wage Deduction ($7,500) -0-
Adjusted Taxable Income $7,500 $15,000
Tax Rate 3.4% 3.4%
Tax Due $255 $510
Total Tax Savings $255 -0-