Enterprise Zone benefits include:
- Enterprise Zone Investment Tax Credit - A state investment tax credit of
0.5% 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. Credit applied
toward the 4.8% State Corporate Income Tax.
- Machinery and Equipment Tax Exemption - State sales tax exemption on
purchases of tangible personal property used or consumed in the
manufacturing or assembly process, when making a $5 million investment
and employing 200 or more.
Property Tax Abatement - Up to 100% of new taxes on improvements abated in Years 1 through 7, 70% abated in Year 8, 40% abated in Year 9, 10% abated in Year 10, fully assessed and taxed thereafter.
Sales Tax Exemption - Sales tax exemption on building materials purchased in Illinois.
Utility Tax Exemption - A state utility tax exemption on gas, electricity, and the Illinois Commerce Commission's administrative charge is available to businesses that locate in an Enterprise Zone. Eligibility for this exemption is contingent upon a business making a $5 million investment which causes the creation of 200 jobs.
Utility Tax: 5.1%
Telecom Tax: 7%
In other words, should the company reach 200 FTP or more employees, the company will be eligible for that exemption at that time.