Indiana > Statewide > Department Of Revenue > Enterprise Zones
Schedule EZ - Indiana
| Schedule EZ Form. This is a Indiana form and can be used in Enterprise Zones Department Of Revenue Statewide . |
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Indiana Schedule EZ 1, 2, 3 Instructions For Tax Years 2008-2012 General Information Taxpayers doing business within an enterprise zone and remaining in good standing with the Indiana Economic Development Corporation (IEDC) may qualify for an adjusted gross income or financial institution tax credit. Use EZ schedules to determine the amount of income tax liability credit for qualified employment expense. Part 1 A & B - Taxpayers with any business activity or income derived from sources both within and outside an enterprise zone may be required to allocate and apportion their income. Use designated Part 1A of Schedule EZ to determine the apportionment percentage for enterprise zone income. Note: A taxpayer is exempt from the allocation and apportionment provision if it: (1) Does not own, rent, or lease real property outside of an enterprise zone that is an integral part of its trade or business; and (2) Is not owned or controlled directly or indirectly by a taxpayer that owns, rents, or leases real property outside of an enterprise zone. In such cases the taxpayer will attribute all income to the zone. Part 2 - Use Part 2 of Schedule EZ to determine the tax credit for qualified increased enterprise zone employment expenditures. If the calculated employment expense credit exceeds the qualified state tax liability, you also must complete Part 3. Part 3 - Use Part 3 of Schedule EZ to claim a carryover of employment expense credit and to record the remaining amount of unused credit. The certification at the bottom of Part 1B must be signed by any taxpayer using either Part 1 or Part 2 of the schedule. Taxpayers doing business in more than one enterprise zone should complete a separate schedule for each zone if there are different base years. Refer to the detailed instructions for each part. For more information, see Income Tax Information Bulletin #66. Part 1A - Apportioned Enterprise Zone Adjusted Gross Income for Employment Expense Tax Credit If the income of a taxpayer is derived from sources both within and outside an enterprise zone, the adjusted gross income attributed to the zone must be determined by use of an apportionment formula unless written permission from the Department of Revenue is granted or the statute exempts the taxpayer. Line 1 (a) (b) (c) (d) - Receipts Factor: The gross receipt's factor is a fraction. The numerator is the total receipts of the taxpayer in the during the tax year, and the denominator is the total receipts of the taxpayer everywhere during the tax year. The numerator of the receipts factor must include all sales made in the zone, sales made from the zone to the U.S. government, and sales made from the zone to a state that does not have jurisdiction to tax the activities of the seller. Page 1 For purposes of the employment expense credit, the numerator will also contain intangible income attributed to Indiana including interest from consumer and commercial loans, installment sales contracts, and credit/debit cards as prescribed under Indiana Code (IC) 6-3-2-2.2. Total receipts include gross sales of real and tangible personal property less returns and allowances. Sales of tangible personal property are in a zone if the property is delivered or shipped to a purchaser within the zone regardless of the f.o.b. point or other conditions of sale or if the property is shipped from an office, a store, a warehouse, a factory, or an other place of storage in a zone and the taxpayer is not taxable in the state of the purchaser. Sales or receipts not specifically assigned above will be assigned as follows: (1) Gross receipts from the sale, rental, or leases of real property are in a zone if the real property is in the zone; (2) Gross receipts from the rental, lease, or licensing the use of tangible personal property are in a zone if the property is in the zone. If the property was both within and outside the zone during the tax year, the gross receipts are considered in the zone to the extent the property was used in the zone; (3) Gross receipts from intangible personal property are in a zone if the taxpayer's commercial domicile is in the zone and such property has not acquired a business situs elsewhere; and (4) Gross receipts from the performance of services are in a zone if the services are performed in the zone. If such services are performed partly within and partly outside the zone, part of the gross receipts from the performance of the services will be attributed to the zone based upon the ratio of direct costs incurred in the zone to the total direct costs of the services, unless the taxpayer can directly attribute the service to the zone. Sales to the United States Government: The United States government is the purchaser when it makes direct payment to the seller. A sale to the United States government of tangible personal property is in a zone if it is shipped from an office, a store, a warehouse, or an other place of storage in the zone. Refer to the previous guidelines for sales other than tangible personal property if such sales are made to the United States government. Total Receipts: Add receipts factor lines (a) through (d). Also enter receipts everywhere in column B. *24100000000* 24100000000 American LegalNet, Inc. www.FormsWorkFlow.com Indiana Schedule EZ Instructions continued Adjusted Receipts Percent Within Zone: Divide the receipt total in column A by the total from column B. Enter the result in line 1 of column C. Part 1 B - Allocated Non-business/Non-unitary Enterprise Zone Income for Employment Expense Tax Credit Complete this part if you are apportioning gross receipts and are excluding any income that is considered non-business income. Lines (1) and (2): Interest (long-term) and dividends from nonbusiness sources are allocable to an enterprise zone if the taxpayer's commercial domicile is in the zone. Dividends from foreign sales corporations (FSC or DISC) are treated as business income and must be apportioned. Line (3): Net capital gains or losses (sales price less acquisition cost) from the sale of non-business personal property are allocated to an enterprise zone if the property had its primary business location in the zone at the time of the sale or the taxpayer's commercial domicile is in the zone. Include net capital gain or loss from the sale or exchange of all real property located in an enterprise zone not used in the production of business income. Line (4): Rents and royalties from tangible personal property are allo
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