Enterprise Zones

ENTERPRISE ZONE APPLICATION

The State of Illinois recently overhauled the Illinois Enterprise Zone program, resulting in openings for new municipalities and counties to obtain Enterprise Zone designations.

Enterprise Zones encourage job growth and investment in economically depressed areas. Companies within a Zone or that agree to move into one, can qualify for tax incentives that include sales tax exemptions on purchases of building materials and manufacturing equipment and an exemption for utility taxes. Each zone is administered by a local official under rules set by the state. State law gives the new Zones a 15-year term, with a review by the board after 13 years for a possible 10-year extension.

As part of the changes to the program there is a new application that entities must complete in order to be considered for designation of a potential Enterprise Zone, which must qualify per the Illinois Enterprise Zone Act (20 ILCS 655/1, et seq.). To be deemed eligible for a zone, applications will be measured according to 10 criteria: unemployment; job creation and investment; poverty; abandoned coal mines, brownfields or federal disaster declarations; major layoffs or business closures; vacancy rate of industrial and commercial buildings; tax base improvement; public infrastructure improvement plan; career skills programs at high schools and community colleges; and changes in the taxable value of business properties.

ENTERPRISE ZONE APPLICATION EXPERIENCE

Moran Economic Development has extensive experience with the new Enterprise Zone application process, having completed the following applications since the change to the Illinois Enterprise Zone Act:

Madison County Discovery Enterprise Zone
Fairmont City/Caseyville/Brooklyn Enterprise Zone
Mt. Carmel/Wabash County Enterprise Zone
Clinton County Enterprise Zone
Olney/Richland County/Newton/Jasper County Enterprise Zone
Beardstown Enterprise Zone
Rantoul Enterprise Zone
Flora/Clay County Enterprise Zone

All of these applications were successful, with each Zone being awarded.

As part of the most recent round of openings MED completed applications for the Jersey-Greene Intermodal Enterprise Zone and Carmi/White County/Edwards County Enterprise Zone.

No openings will be available in 2017, but there will be up to 13 openings for new Enterprise Zones designated based on applications submitted by December 31, 2018.

ENTERPRISE ZONE ADMINISTRATION

Moran Economic Development can help administer your existing Zone. We can help with reporting criteria, sales tax exemption certificates and working with local businesses on Zone benefits.

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