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Illinois Enterprise Zone Program

The Illinois Enterprise Zone Program is designed to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state through state and local tax incentives, regulatory relief and improved governmental services.  Businesses located or expanding in an Illinois enterprise zone may be eligible for the following state and local tax incentives:

State Incentives and Exemptions

  • Illinois Department of Revenue (IDOR)

    • The Building Materials Exemption (BME) provides relief from sales tax on building materials used in the construction, rehabilitation, or renovation of real estate.  Building materials exemptions are only available to those contractors or other entities with a certificate issued by IDOR. A contractor or other entity seeking a certificate must apply though the Zone Administrator of the zone where the project is located.  More information is available at http://www.revenue.state.il.us/Businesses/Incentives/ .
    • The Investment Tax Credit allows for a 0.5 percent credit against the state income tax for investments in qualified property, which is placed in service within an enterprise zone.  For more information, please contact IDOR at 800.732.8866 or 217.782.3336.

  • Illinois Department of Commerce & Economic Opportunity (DCEO)

    • The Manufacturing Machinery and Equipment / Pollution Control (MM&E) provides a 6.25 percent state sales tax exemption on all tangible personal property which is consumed within an enterprise zone in the process of manufacturing.  To be eligible for this incentive, DCEO must certify that the business has:
      • made an investment of at least $5 million in an enterprise zone and has created a minimum of 200 full-time equivalent jobs; or
      • made an investment of at least $40 million in an enterprise zone and has retained a minimum of 2,000 full-time jobs; or
      • made an investment of $40 million in an enterprise zone and retained 90 percent of the jobs in place on date of certification.
    • The Utility / Telecommunications Tax Exemption provides a 5 percent state tax exemption on gas, electricity as well as an exemption of the Illinois Commerce Commission .1 percent administrative charge and excise taxes on the act or privilege of originating or receiving telecommunications.  To be eligible for this incentive, DCEO must certify that the business has:
      • made an investment of at least $5 million in an enterprise zone and has created a minimum of 200 full-time equivalent jobs; or
      • made an investment of at least $175 million in an enterprise zone and has created a minimum of 150 full-time equivalent jobs; or
      • made an investment of at least $20 million in an enterprise zone and has retained a minimum of 1,000 full-time jobs in Illinois.

    • Certification through DCEO requires business entities to submit an application and supporting documentation which demonstrate that the business entity has met the minimum statutory requirements of investment and job creation/retention.  Incomplete or inaccurate applications will be rejected.  Applicants are encouraged to contact DCEO prior to submitting an application for consideration.

Local Incentives and Exemptions

In addition to state incentives, each zone offers local incentives to enhance business development projects.  Each zone has a designated local zone administrator responsible for compliance and is available to answer questions.  More information regarding Illinois Enterprise Zones is available by clicking on the links below: 

Enterprise Zone Listing

Enterprise Zone Administrators and Contacts

Enterprise Zone Board Public Notices

Enterprise Zone Program Incentives

Illinois Enterprise Zone Map

Interactive Illinois Enterprise Zone Map

Individual Enterprise Zone Maps

City of Chicago GIS Enterprise Zone Maps

Illinois Enterprise Zone Act

Illinois Enterprise Zone JCAR Administrative Rules

2018 Enterprise Zone Fee Schedule

2017 Enterprise Zone Fee Schedule

2016 Enterprise Zone Annual Report

2015 Enterprise Zone Annual Report

2014 Enterprise Zone Annual Report

2013 Enterprise Zone Annual Report

2012 Enterprise Zone Annual Report

 

ENTERPRISE ZONE AMENDMENT APPLICATIONS

Enterprise Zone Boundary Expansion Applications:

Enterprise Zone Application to Add Unit Of Government:

Enterprise Zone Application to Expand, Limit Or Repeal, Incentives:

Enterprise Zone Deletion of Territory:

 

ENTERPRISE ZONE DESIGNATION APPLICATION

 

2016 NEW ENTERPRISE ZONE DESIGNATION

10.18.2017 - Press Release

 

2015 NEW ENTERPRISE ZONE DESIGNATION

01.26.2016 - Press Release

 

2014 NEW ENTERPRISE ZONE DESIGNATIONS

08.16.2015 - Press Release


 

For more information on Illinois Enterprise Zones contact:

Email: CEO.EZHelp@illinois.gov
Phone: 217-785-6215 or 217-524-0165
TYY: 800-785-6055