AIRPORT DEVELOPMENT ZONE
The Gary-Chicago Airport Development Zone, ADZ, was established by the
Indiana legislature in July, 1993, and designated as such for a minimum period
of 20 years.
ADZ PRIMARY OBJECTIVES
- To provide economic revitalization in the area surrounding the Gary-Chicago
Airport
- To influence investment, location and employment decisions of businesses
- To attract new businesses to the ADZ and assist new start-up firms
- To assist existing businesses in expansion and development
- To foster job creation and training particularly for ADZ residents
The ADZ offers the same benefits and incentives that are provided in the Urban
Enterprise Zone. These benefits are summarized below.
- Inventory Tax Abatement A taxpayer will receive a credit against the
taxpayer's personal property tax liability equal to the personal property tax on
all inventory located in the ADZ on the assessment date.
- Gross Income Tax Exemption Companies within the ADZ are exempt from
Indiana Gross Income Tax to the extent of any increase in the ADZ qualified
gross income received during the period from January 1, 1992 - December 31,
1992, which is considered the base year. There are special rules for fiscal year
taxpayers.
- Wage Tax Credit Employees are allowed an annual credit, after
application of all other Indiana tax credits, against their development zone
state tax liability, either gross income tax or adjusted gross income tax
arising from zone activities, or the lesser of the two.
- Investment Credit Individuals or trusts purchasing an ownership
interest in a business located in the development zone may be eligible for an
investment credit, up to 30% of the purchase price, against their state tax.
- Individual Wage Exemption All qualified employees' wages will be
exempt from Indiana individual income tax, limited to the lesser of: one-half of
the employee's adjusted gross income earned, or $7,500.00.
- Real Estate Tax Abatement As designated by the Gary City Council,
specific areas receive reduced tax assessment.
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