What in the world is a UEZ?

Mar 8, 2010 — The Evening News and The Tribune

Mar. 6, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- SOUTHERN INDIANA -- UEZ.

In this acronym-encumbered society of ours, that could mean anything.

Unequivocal Enthusiasm and Zeal? No.

Unstoppable Electrified Zombies? Mercifully, nope.

In this case, UEZ stands for Urban Enterprise Zones: Two areas of Jeffersonville -- one downtown and one at River Ridge Commerce Center -- where residents and businesses can collect tax breaks for living and operating.

When businesses and residents participate, a portion of those tax savings go to a local board, called the Urban Enterprise Association. That board can use the money to invest in neighborhood programs aimed at improving the quality of life in the zone.

A handful of Jeffersonville leaders, including Urban Enterprise Association Chairwoman Diane Swank, Grant Specialist Andrea Stevens and representatives from accounting agency Crowe Horwath met Friday at Jeffersonville City Hall, discussing efforts to bolster interest in participation in the program.

The more participants, the more money available to the local board to reinvest, explained Swank. The problem is that only about 30 businesses in the downtown area and four businesses at River Ridge file for deductions and credits, according to Mary Sue Ellenbrand, with the Jeffersonville Redevelopment Department.

WHAT'S AVAILABLE?

Deductions are available for those who invest in businesses within the zone -- purchasing or constructing a building, buying new equipment, infrastructure improvements and more. Businesses also can get employee expense credits on employees that live, perform services and spend 50 percent of their time working in the zone.

Employees themselves -- those who live and work in zone -- can deduct half of their income earned in the UEZ, up to $7,500, on taxes. That particular deduction only applies downtown because no one lives at River Ridge Commerce Center.

There are loan interest credits available to financial institution that make loans to business and residents within the zone. And there are credits available for investors in UEZ businesses -- for example a taxpayer that buys ownership interest in a businesses located within the zone.

Appropriate forms must be filled out in order to receive the credits or deductions. Those interested can visit the Redevelopment Office at Jeffersonville City Hall, 500 Quartermaster Court or call 812-285-6440.

WHO LOSES, WHO WINS?

City Communications Director Larry Thomas said the money is deducted out of state taxes, not local property taxes. Receiving the deduction is not going to take money out of local coffers.

"It's less money going to the state and more staying under local control," said Stevens.

"We can reinvest the revenue back to the residents and business," added Swank.

In the past, UEZ money has been allocated to Jeffersonville Main Street Inc. for its front-porch project, in which the organization made grants available for downtown home improvements, Swank noted. The Clark County Farmers Market, neighborhood associations and the Southern Indiana Heritage Trail also have been funded.

"It's just an important economic development tool," Stevens said. "It's to improve the quality of life for the residents."

GETTING THE WORD OUT

City officials involved in Friday's discussion are hoping to get the word out about the program, with press releases, fliers, a Web page and by talking to local merchants.

"I think if we educate the businesses, that will go along way," Stevens said.

There also was discussion of getting the word out to Realtors and accountants so they pass the word on to clients.

A seminar on UEZ deductions available for property investments is scheduled for 9 a.m. April 8 at Jeffersonville City Hall.

Another seminar, more focused on residents and employees, is planned in October.

Newstex ID: KRTB-0418-42675281