Enterprise Zone
If you are starting a new business or a local business looking to expand, the Northwest Illinois Enterprise Zone and the Greater Freeport Partnership are here to provide you with the tools you need.
The enterprise zone is a state-authorized, locally designated geographical area that provides special incentives to encourage economic development, strengthen the business climate, and help create jobs. Our regional zone includes:
- City of Freeport
- Stephenson County
- Jo Daviess County
- Village of Hanover
- City of East Dubuque
- Village of Lena
Enterprise zone boundaries can be expanded if they meet certain criteria, giving businesses flexibility as they grow. Incentives include:
- Exemption from all sales tax on building materials for authorized new projects
- Waiver of certain local building permits and fees
- Exemption from property tax increases resulting from expansion or new plan
Program Details
Enterprise zone incentives are established by state legislation and by local ordinance. The Illinois Enterprise zone Act took effect December 7, 1982. An enterprise zone is a specific area designated by the State of Illinois in cooperation with local government to receive various incentives and other benefits to stimulate economic activity and neighborhood revitalization. Enterprise zones range from a half-square mile to twenty square miles.
The Northwest Illinois Enterprise Zone was certified by the State of Illinois on March 1, 1990. The Northwest Illinois Enterprise Zone termination date has been renewed and extended to December 31, 2034.
The enterprise zone program is administered at the state level by the Illinois Department of Economic Opportunity (DCEO). For general information on the program, contact the department at (217) 785-4034 in Springfield. The hearing impaired may call (312) 419-0667 in Chicago or (217) 785-6055 in Springfield.
Step 1: DETERMINE IF YOU ARE IN THE ENTERPRISE ZONE
The Northwest Illinois Enterprise Zone is within specifically designated areas of Stephenson and Jo Daviess counties. To determine if you are within one of these zones, follow the link below and select the search icon (the magnifying glass in the top right) and type in the project address.
Step 2: PROJECT OWNER APPLICATION
After you have determined if you project is within the boundary, select the application below and complete the next steps. Ensure you have the information in the bullet list ready at the time of application.
- Estimated building materials cost
- Estimated total labor cost
- FEIN
- Parcel ID (Jo Daviess County – Stephenson County)
- Your current Full Time Equivalent (FTE) employees
- Application Fee receipt*
STEP 3: SALES TAX EXEMPTION APPLICATION
Each contractor/subcontractor that purchases materials on the project owner’s behalf will need to apply for their own exemption certificate. Be sure to provide all subcontractors with the Project Name you provided in the Project Owner Application.
STEP 4: STATE ISSUES TAX CERTIFICATES
The contractors/subcontractors will receive a link at the email address they provided in their application from the Illinois Department of Revenue for the Building Materials Tax Exemption Certificate for the project. The certificate is now ready to be printed and used at the point of sale for building materials.
STEP 5: FILING ANNUAL STATE REPORTS
The project owner and subcontractors will receive an email from the Illinois Department of Revenue with a request to file an annual report. Failure to complete the annual report may result in inability to receive future tax exempt certificates.
State reporting requirements can be found here: https://tax.illinois.gov/businesses/incentives.html