Introduced Version




Citations Affected: IC 6-3-2-8.

Synopsis: Enterprise zone employee wage deductions. Provides that a person who resides in an enterprise zone and who performs services as an employee of a nonprofit entity in the enterprise zone is eligible for the enterprise zone qualified employee wage deduction under certain circumstances.

Effective: January 1, 2002.


    January 17, 2001, read first time and referred to Committee on Ways and Means.


First Regular Session 112th General Assembly (2001)

PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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    A BILL FOR AN ACT to amend the Indiana Code concerning taxation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 6-3-2-8; (01)IN1741.1.1. -->     SECTION 1. IC 6-3-2-8 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2002]: Sec. 8. (a) For purposes of this section, "qualified employee" means an individual who is employed by a taxpayer, or by an employer exempt from adjusted gross income tax (IC 6-3-1 through IC 6-3-7 ) under IC6-3-2-2.8(3), (4), or (5) section 2.8(3), 2.8(4), or 2.8(5), or by a nonprofit entity, 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, or the employer, or the nonprofit entity, 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;

        that is are located in an enterprise zone; and
        (3) performs at least fifty percent (50%) of the employee's service

for the taxpayer, or employer, or nonprofit entity during the taxable year in the enterprise zone.
    (b) Except as provided in subsection (c), 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).
    (c) 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.

SOURCE: ; (01)IN1741.1.2. -->     SECTION 2. [EFFECTIVE JANUARY 1, 2002] IC 6-3-2-8 , as amended by this act, applies only to taxable years beginning after December 31, 2001.