State of illinois-city of chicago enterprise zone program



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STATE OF ILLINOIS-CITY OF CHICAGO ENTERPRISE ZONE PROGRAM

The Illinois Enterprise Zone Act was created by the Illinois General Assembly in 1982 to stimulate economic development in 95 targeted business districts. There are 6 “Enterprise Zones” in Chicago, and all offer the same incentives to encourage economic development. RFMA serves Enterprise Zone #4 bordered roughly by Kennedy Expy., Eisenhower Expy., Grand Ave., Kedzie Ave. Return to “Incentives” page for link of Map #4.


Sales Tax Exemption - A city-county-state sales tax exemption is permitted on building materials which must be permanently affixed to the property during construction or renovation. If you complete basic repairs (e.g. painting, remodeling) that do not require a building permit OR complete construction with a permit, you can receive a City of Chicago certificate for immediate point-of-purchase sales tax discount when purchasing materials. Return to “Incentives” page for application link. City of Chicago contact: camille.loggins@cityofchicago.org, (312) 744-0893.
Real Estate Transfer Tax Exemption – Gain exemption from City of Chicago real estate transfer tax when buying commercial and industrial real estate. Take exemption at point of purchase on closing form or after closing. City of Chicago contact: Ron Mikrut, ronald.mikrut@cityofchicago.org, 312-747-0660.
Class 6B Property Tax Reduction – City of Chicago/Cook County offer a property tax reduction for new industrial property rehabilitations and reusing abandoned buildings. When construction is completed, industrial/commercial properties receive an assessment at 16% for first 10 years, graduating back to 36% in 13th year. Return to “Incentives” page for application link.
Dividend Income Deduction - Individuals, corporations, trusts and estates are not taxed on dividend income from corporations doing substantially all of their business in an Enterprise Zone.
Jobs Tax Credit – A Jobs Tax Credit allows a business a $500 credit on Illinois income taxes for each job created in the Zone for which a “Certified Eligible Worker” is hired. The credit may be carried forward for up to five years. A minimum of five workers must be hired to qualify for the credit.
Interest Deduction - Financial institutions are not taxed on interest received on loans for development within a zone.
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.
Machinery and Equipment Consumables/Pollution Control Facilities Sales Tax Exemption - A sales tax exemption on purchases of personal property used in manufacturing or assembly or operation of a pollution control facility is available. Eligibility is for businesses investing at least $5 million in qualified property that creates a minimum of 200 full-time jobs; OR a business investing at least $40 million and retaining at least 2,000 jobs; OR a business investing at least $40 million to retain at least 90 percent of existing jobs.
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. Eligible businesses must make an investment of at least $5 million in qualified property that creates a minimum of 200 full-time jobs; OR an investment of $20 million that retains at least 1,000 full-time jobs; OR an investment of $175 million that creates 150 full-time jobs.


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