Schedule IT-40QEC                           Indiana Department of Revenue                                                       Enclosure 
State Form 21928                                                                                                     Sequence No. 18
(R20 / 9-24)                     Enterprise Zone Qualified Employee                                   2024
                                            Deduction Certificate

Name of employee                                    Social Security Number                       Name of Enterprise Zone
                                                                                                 Date of residence in Enterprise Zone:
                                                                                                 From              To
Employee’s street address                                                                        Amount of compensation for tax year 
                                                                                                 during the period of residence in the 
                                                                                                 Enterprise Zone: $
City of residence                                                                                Caution: Limitation of Deduction
                                                                                                 Enter ½ of the above amount or 
                                                                                                 $7,500, whichever is less: $

Employer                                    Address                                                   Federal Employer  
                                                                                                      Identification Number

I certify that the above-named employee was paid the amount indicated as compensation for services rendered, and that he/she is a 
qualified employee as defined in IC 6-3-2-8.
Signature of employer                       Title                            Telephone number                           Date

                          Instructions for Completing Schedule IT-40QEC

Schedule IT-40QEC is to be completed by the enterprise zone employer and distributed to its qualified employee(s). The qualified 
employee should claim this deduction on IT-40 Schedule 2 or IT-40PNR Schedule C. The employee must enclose the IT-40QEC with 
the state individual income tax return to support any claimed deduction of earned enterprise zone income.

Indiana Code IC 6-3-2-8 defines a “qualified employee” as an individual who:
1.  Has a principal place of residency in the enterprise zone where employed;
2.  Performs services for the employer 90 percent of which are directly related to the conduct of the employer’s trade or business 
   located in an enterprise zone;
3.  Performs services for the employer at least 50 percent of the time during the taxable year within an Indiana state enterprise zone; 
   and
4. Is employed by a business that remains eligible to receive benefits and incentives as provided by enterprise zone legislation.

Portions of certain Indiana cities are designated as state enterprise zones. A qualified employee living and working in a designated 
enterprise zone may be entitled to deduct from state adjusted gross income one-half of the enterprise zone income earned 
for services or $7,500, whichever is less. Enterprise zone income means wages, salaries, commissions and any other forms of 
remuneration paid to qualified employees for services by an enterprise zone employer, minus any IRA deductions directly related to that 
earned income.

For a listing of all current enterprise zones and contact information for each zone please visit www.aiez.org/#mem.
Privacy Notice: The records in this series are CONFIDENTIAL according to the provisions of IC 6-8.1-7-1 and IC 5-28-15-8.

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