Questions Call 815-937-3570

Consider this: during Fiscal Year 2006, private investments of over $3.9 billion in Illinois' 95 enterprise zones resulted in the creation of 21,332 jobs, and the retention of 29,085 jobs.

Tools for Development.

The Illinois Enterprise Zone Act was signed into law in 1982, thereby creating the Enterprise Zone Program. Together, the IEZA and the Enterprise Zone Program have been very successful at attracting investments within Illinois enterprise zones.

Historically, since the Illinois Enterprise Zone Act was enacted, the Enterprise Zone Program has demonstrated a great level of success:

35,313

- Number of businesses investing in Illinois enterprise zones

$38.35 Billion

- Investment by companies in Illinois enterprise zones

301,504

- Jobs created by businesses in Illinois enterprise zones

488,950

- Jobs retained by businesses in Illinois enterprise zones


(For complete Illinois Enterprise Zone Program statistical information, download the FY 2012 Enterprise Zone Annual Report: 2012 IEZA Annual Report 731 Kb

There are currently 95 Enterprise Zones in Illinois,

the maximum number that may be designated according to Illinois law. All offer the same mix of state incentives designed to encourage companies to locate or expand within a zone. In addition, each zone offers distinctive local incentives to enhance business or neighborhood development efforts. Such local incentives include abatement of property taxes on new improvements, homesteading and shopsteading programs, waiver of business licensing and permit fees, streamlined building code and zoning requirements, and special local financing programs and resources.

STATE INCENTIVES

  • Sales Tax Exemption - A 6.25 percent state sales tax exemption is permitted on building materials to be used in an Enterprise Zone. Materials must be permanently affixed to the property and must be purchased from a qualified retailer.
  • Enterprise Zone Machinery and Equipment Consumables/Pollution Control Facilities Sales Tax Exemption - A 6.25 percent state sales tax exemption on purchases of tangible personal property to be used in the manufacturing or assembly process or in the operation of a pollution control facility within an Enterprise Zone is available. Eligibility is based on a business making an investment in an Enterprise Zone of at least $5 million in qualified property that creates a minimum of 200 fulltime-equivalent jobs, a business investing at least $40 million in a zone and retaining at least 2,000 jobs, or a business investing at least $40 million in a zone which causes the retention of at least 90 percent of the jobs existing on the date it is certified to receive the exemption.
  • Enterprise Zone Utility Tax Exemption - A state utility tax exemption on gas, electricity and the Illinois Commerce Commission's administrative charge and telecommunication excise tax is available to businesses located in Enterprise Zones. Eligible businesses must make an investment of at least $5 million in qualified property that creates a minimum of 200 full-time equivalent jobs in Illinois, an investment of $20 million that retains at least 1,000 full-time-equivalent jobs, or an investment of $175 million that creates 150 full-time equivalent jobs in Illinois. The majority of the jobs created must be located in the Enterprise Zone where the investment occurs.
  • Enterprise Zone Investment Tax Credit - A state investment tax credit of 0.5 percent is allowed a taxpayer who invests in qualified property in a Zone. Qualified property includes machinery, equipment and buildings. The credit may be carried forward for up to five years. This credit is in addition to the regular 0.5 percent investment tax credit, which is available throughout the state, and up to 0.5 percent credit for increased employment over the previous year.
  • Contribution Deduction - Businesses may deduct double the value of a cash or in-kind contribution to an approved project of a designated Zone organization from taxable income.

LOCAL INCENTIVES

Local governments, through the assistance and coordination of IEZA Zone Administrators, may provide a variety of local incentives to further encourage economic growth and investment in enterprise zones. The incentives offered are determined by the local governments. The following list is not inclusive but serves as an example of the most common local enterprise zone incentives offered:

  • Abatement of property taxes on new improvements
  • Homesteading and shopsteading programs
  • Waiver of business licensing and permit fees
  • Streamlined building code and zoning requirements
  • Special local financing programs and other resources.

Want more info?

Check out our Illinois Enterprise Zone FAQ.

Illinois Enterprise Zone Association
600 Main Street
Bourbonnais, IL 60914
815-937-3570
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