Governor Quinn Extends Enterprise Zone Tax Breaks

 Posted on December 00, 0000 in Illinois Enterprise Zone

Illinois has maintained a tax incentive program for businesses in enterprise zones since 1982. The law authorizing this program had been set to expire next year. According to the Chicago Sun-Times, Governor Pat Quinn signed a law, effective immediately, which extends the Illinois Enterprise Zone Program for another 25 years.

Illinois currently has 97 enterprise zones in which businesses can obtain tax breaks pursuant to the Illinois Enterprise Zone Program. Essentially, the enterprise zone tax break program gives businesses that locate or expand within certain designated areas tax breaks. These tax breaks include the following:

• exemption on the retailers’ occupation tax paid on building materials
• investment tax credit of 0.5 percent of qualified property
• tax credit for any jobs that the businesses create

According to the Illinois Department of Commerce and & Economic Opportunity, businesses locating or expanding in enterprises zones that meet certain requirements, such as creating or retaining a certain amount of jobs, also may be entitled to additional tax breaks, such as:

• expanded state sales tax exemption on purchases of personal property used in the manufacturing process or in the operation of a pollution control facility
• exemption on the state utility tax for electricity, natural gas, and the ICC's administrative charge and telecommunications excise tax

Additionally, the Illinois Enterprise Zone Program also offers businesses located in enterprise zones certain local incentives to assist in business development projects, such as a local zone administrator to assist with zone compliance.

If you are considering establishing or expanding a business, you may benefit from the incentives that an Illinois enterprise zone has to offer. Only an experienced Chicagoland business attorney can help you explore the options and tax incentives for which your business may qualify. Contact your Chicagoland real estate lawyer today, and potentially reap the benefits of the Illinois Enterprise Zone Program.