Incentive Spotlight
Illinois Enterprise Zone Program

Program Benefits

For businesses investing in Illinois’ designated enterprise zones, the program offers multiple incentives, including:

• Sales and Utility Tax Exemptions: Exemptions from state and local sales tax on building materials and certain utility taxes (gas, electricity, telecommunications) for qualifying businesses within the zone.
• Investment and Jobs Tax Credits: Tax credits against state income tax for investments in qualified property and a per-job credit for businesses creating new employment opportunities in the zone.
• Property Tax Abatement and Financing Incentives: Local property tax abatements on new improvements and potential interest income deductions for financial institutions on loans made for development projects.
• Additional Deductions and Credits: Including a dividend income deduction for corporations investing in the zone and extended net operating loss carry-forwards under certain conditions.

Eligibility

Eligibility for the Illinois Enterprise Zone Program typically includes:

• Location: Businesses must be located within one of Illinois’ designated enterprise zones.
• Investment and Job Creation Requirements: Certain benefits require specific investment minimums or job creation targets.
• Business Type: Most commercial, industrial, and manufacturing businesses are eligible for program benefits.

Applications are accepted year-round. Businesses are encouraged to apply early to align project timelines with program requirements.