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.
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.
EZ incentives apply to any remodeling, rehabilitation, or new construction of a qualified commercial, industrial, or manufacturing project with a total cost exceeding $10,000. These incentives include property tax abatement, sales tax exemption, and an investment credit.
- The property tax abatement is at the rate of 100% of the taxes corresponding to the increase in assessed valuation attributable to the improvements on the property for a period of five years beginning with the calendar year in which the improvements are fully assessed.
- The sales tax exemption is permitted on building materials that are permanently affixed to the property, to be used in the project with the EZ.
- The investment credit is a state investment tax credit of 0.5% allowed to a taxpayer who invests in qualified property in an EZ. Qualified property includes machinery, equipment, and buildings. The credit may be carried forward for up to five years.