If you have property or a business located within the Northwest Illinois Enterprise Zone, are you utilizing the tax incentives? First and foremost is the Building Materials Sales Tax Exemption. If you are planning a construction or remodeling project, you may be eligible for a significant tax savings. The Building Materials Sales Tax Exemption is a point-of-sale tax exemption on State, City and County sales tax on building materials that are incorporated as real property improvements.
Approval for the exemption is processed by the Northwest Illinois Enterprise Zone Administrator after submission of the applications and documented construction materials lists and costs. All forms must be completed in full and must be accompanied by an approved building permit application issued by the City of Freeport or other recognized body and payment of EZ applicable fees.
You can find the application here: NWIL-EZ Sales Tax Exemption Application
Investment Tax Credit: The Illinois Income Tax Act 35 ILCS 5/201, as amended, allows corporations, trusts, estates, individuals, partners, and Subchapter S shareholders a 0.5 percent credit against the state income tax for investments in qualified property which is placed in service in the Northwest Illinois Enterprise Zone. This credit is in addition to the existing 0.5 percent investment tax credit allowed statewide against the corporate personal property replacement tax.
The investment tax credit applies gross income subject to Illinois income tax and to the depreciable basis of qualified property placed in service within the Northwest Illinois Enterprise Zone. It is a one-time credit given in the taxable year in which the property is placed in service. If the amount of the credit exceeds the tax liability for that year, the excess may be carried forward and applied to the tax liability up to five taxable years following the excess credit year. Examples of qualified property include buildings, structural components of buildings, elevators, materials tanks, boilers, and major computer installations.
Open Market Natural Gas Tax Exemption: Companies who are located within the boundaries of the Northwest Illinois Enterprise Zone are entitled to an exemption on the state sales tax for “wheeled” or open market natural gas transactions. In order to receive the exemption, the Form RG-61 Gas Use Tax Exemption Certificate (Addendum D) must be completed and given to your delivering supplier. If any of the information you provide on Form RG-61 changes, you must complete a new Form RG-61. Even if no changes are required, a new Form RG-61 must be completed every five years to keep records current.
Property Tax Abatements: If your property is not located in a Tax Increment Financing District (TIF) you may be eligible to apply for property tax abatements. Industrial, commercial, and residential projects are eligible for different abatement schedules.
Please call the Greater Freeport Partnership – Enterprise Zone Administrator Office to talk with Andrea Schultz Winter at 815-233-1354 or awinter@greaterfreeport.com. For more information, please visit: https://greaterfreeport.com/development/enterprisezone/
Mark Williams is the Executive Director for the Greater Freeport Partnership. He can be reached at mwilliams@greaterfreeport.com or 815-233-1356.
