The Illinois Enterprise Zone Program is designed to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state. This is accomplished through state and local tax incentives, regulatory relief, and improved governmental services.
The Illinois Enterprise Zone Act was signed into law December 7, 1982. The purpose of the Act is to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state. Businesses located (or those that choose to locate) in a designated enterprise zone can become eligible to obtain special state and local tax incentives, regulatory relief, and improved governmental services, thus providing an economic stimulus to an area that would otherwise be neglected.
Businesses located or expanding in an Illinois enterprise zone may be eligible for the following incentives: an exemption on the retailers’ occupation tax paid on building materials, and an investment tax credit of .5 percent of qualified property. Additional exemptions, such as an expanded state sales tax exemption on purchases of personal property used or consumed in the manufacturing process or in the operation of a pollution control facility and an exemption on the state utility tax for electricity, natural gas and the Illinois Commerce Commission’s administrative charge and telecommunication excise tax are available for companies that make the minimum statutory investment that either creates or retains the necessary number of jobs. These exemptions require a business to make application to, and be certified by, the Department. In addition to the state incentives, each zone offers distinctive local incentives to enhance business development projects. Each enterprise zone has a designated zone administrator who is responsible for zone compliance and is available to answer questions regarding the zone. To receive a Certificate of Eligibility for Sales Tax Exemption, you must contact the local zone administrator of the zone into which the purchased building material will be incorporated. More information regarding Illinois enterprise zones is available by clicking on the links below.
Enterprise Zone Tax Questions and Answers
Or for further information please contact:
Illinois Department of Commerce
& Economic Opportunity
Bureau of Business Development
500 East Monroe,
Springfield, Illinois 62701