The HIB program is designed to encourage large-scale economic development activities, by providing tax incentives (similar to those offered within an enterprise zone) to companies that propose to make a substantial capital investment in operations and will create or retain above average number of jobs. Businesses may qualify for: investment tax credits, a state sales tax exemption on building materials, an exemption from state sales tax on utilities, a 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. The project must involve a minimum of $12 million investment causing the creation of 500 full-time jobs or an investment of $30 million causing the retention of 1500 full-time jobs. The investment must take place at a designated location in Illinois outside of an Enterprise Zone. The program has been expanded to include qualified new electric generating facility, production operations at a new coal mine or, a new or upgraded transmission facility that supports the creation of 150 Illinois coal-mining jobs, or a newly constructed gasification facility as a "Coal/Energy High Impact Businesses". In 2009, the program was further expanded to include wind energy facilities. The designation as a Wind Energy/High Impact Business is contingent on the business constructing a new electric generation facility or expanding an existing wind power facility. “New wind power facility” means a newly constructed electric generation facility, or a newly constructed expansion of an existing electric generation facility, placed in service on or after July 1, 2009, that generates electricity using wind energy devices. “New wind energy device” means any device, with a nameplate capacity of at least 0.5 megawatts, that is used in the process of converting kinetic energy from the wind to generate electricity. A qualifying High Impact Business may be eligible to receive the following: sales tax exemption on building materials, an investment tax credit, an exemption from state gas and electric tax, and a state sales tax exemption on personal property used or consumed in the manufacturing process or in the operation of a pollution control facility.
The Coal/Energy High Impact Business may qualify for sales tax exemption on building materials, an investment tax credit, an exemption from state gas tax on utilities and excise tax on electricity. A Wind Energy / High Impact Business only qualifies for the sales tax exemption on building materials.
It is important to apply and be certified for HIB designation before commencement of the project, including purchase of building material. Here is a link to the Illinois Department of Revenue rules outlining the process for building material sales tax exemption:
A designated High Impact Business located in a foreign trade zone or sub-zone is eligible for additional incentives including an income tax credit for a minimum of five new eligible hires, an exemption from municipal tax on utilities, an exemption from the telecommunications excise tax, and an income tax deduction for financial institutions receiving interest from loans secured by property eligible for the High Impact Business Investment Tax Credit.
The department will review an application within 30 days of receipt. The department may request supplemental information needed to determine eligibility. If additional information is requested, the applicant will be allowed 30 days to submit it. The department will then accept or deny the application within 30 days. If the department denies the initial application, it will specify the reasons for denial in writing, and allow the applicant 30 days to amend and resubmit the application. Resubmitted applications will be approved or denied within 30 days of receipt.
If the application is approved, the department will notify the applicant in writing of designation as a High Impact Business, and transmit a copy of the designation to the Illinois Department of Revenue.
For further information please contact:
Illinois Department of Commerce
& Economic Opportunity
Bureau of Business Development
500 East Monroe,
Springfield, Illinois 62701