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Enterprise Zone Tax Exemptions, Credits and Deductions

              • Sales Tax Exemption - A 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.

  Contact: Essie Banks, Department of Planning and Development
  312.744.7076 or Esperanza.Banks@cityofchicago.org

          • Real Estate Transfer Tax Exemption - Commercial and industrial properties purchased within Enterprise Zones are eligible for an exemption from Chicago's Real Estate and Transfer Tax.

  Contact: Chicago Department of Finance, Tax Collection and Enforcement
 
http://www.cityofchicago.org/city/en/depts/fin/provdrs/tax_division/svcs/ez_dec.html

        • 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 full-time-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.

  Contact: Kendalynn Jackson, Enterprise Zone Manager, Illinois Business Development Office, Illinois
  Department of Commerce and Economic Opportunity
  217.524.0165 or Kendalynn.Jackson@illinois.gov

  • 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.

  Contact: Kendalynn Jackson, Enterprise Zone Manager, Illinois Business Development Office, Illinois
  Department of Commerce and Economic Opportunity
  217.524.0165 or Kendalynn.Jackson@illinois.gov

            • Enterprise Zone Investment Tax Credit - A state investment tax credit of 0.5 percent is allowed a taxpayer who invests in qualified property in an Enterprise 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.

  Contact: Illinois Department of Revenue
  800.732.8866 or 217.782.3336 or RevEZReporting@illinois.gov

  • Contribution Deduction - Businesses may deduct double the value of a cash or in-kind contribution to an approved project of a designated Enterprise Zone organization from taxable income.

  Contact: Illinois Department of Revenue
  800.732.8866 or 217.782.3336 or RevEZReporting@illinois.gov