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Illinois Enterprise Zone Program (97 Zones Statewide)
Illinois Department of Commerce and Economic Opportunity (DCEO) + designated local Enterprise Zone administratorsSee programDeadline: Rolling — must be located within a designated Enterprise Zone to qualify. Verify zone boundaries with local Enterprise Zone administrator before commitment.
Illinois' broadest geographically-distributed state tax incentive program. Designated zones generally cover economically distressed areas (urban core, downtown commercial districts, industrial corridors, rural communities). Each zone administered by a local Zone Administrator (typically a county or municipality). Combination of automatic state benefits (sales tax exemptions on materials and machinery) and discretionary local benefits (property tax abatement schedule). Most heavily used incentive for commercial/industrial development projects in IL.
Program details
- Agency
- Illinois Department of Commerce and Economic Opportunity (DCEO) + designated local Enterprise Zone administrators
- Level
- State
- Category
- State Tax Incentive
- Eligibility
- Businesses located within or expanding into one of Illinois' designated Enterprise Zones. 97 zones currently designated covering urban and rural areas. Building materials exemption: contractor purchases for projects in EZ. Machinery/MRO exemption: manufacturing equipment for facility in EZ. Investment credit: $5M+ investment in EZ. Jobs credit: new full-time job at EZ facility.
- Funding Amount
- Bundle of state and local-option tax incentives: (a) Sales tax exemption on building materials (6.25% state + local rate, total typically 8–10%); (b) Sales tax exemption on machinery and equipment for manufacturing; (c) Sales tax exemption on Manufacturing, Repair, and Overhaul equipment (MRO); (d) Utility tax exemption (state electric/gas excise tax); (e) Investment tax credit (0.5% qualified investment); (f) Jobs tax credit ($500/new job to $1,000/zone resident hire); (g) Dividend deduction; (h) Contribution deduction. Local option: property tax abatement up to 100% (most common), permit fee waivers.
- Deadline
- Rolling — must be located within a designated Enterprise Zone to qualify. Verify zone boundaries with local Enterprise Zone administrator before commitment.
- Status
- open
- Geographic Scope
- Illinois only
- Project Types
- economic_development, manufacturing, commercial, industrial, real_estate
- Client Types
- commercial
- Notes
- For evlv.energy clients: HIGH RELEVANCE — building materials sales tax exemption applies to renewable energy installations (solar racking, inverters, panels treated as building materials in many zones) and EV charging infrastructure. Verify with specific zone administrator. Stack with: federal OZ if overlapping tract, federal §48E ITC, MACRS, Cook County 6b (if in Cook County industrial EZ), local property tax abatement. CANNOT stack with HIB at same site.
Source: Grantya research. Confirm current terms with the administering agency before applying.