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Enterprise Zone Program

Greenville Enterprise Zone Program
20 ILCS 655/1 et seq., as amended 

Greenville/Bond County Enterprise Zone - January 1, 2018 - December 31, 2032


 Enterprise Zones are among Illinois’ most important tools to stimulate economic growth and neighborhood revitalization. The Enterprise Zone program depends upon a creative partnership between state and local government, businesses, labor and community groups to encourage economic growth in the areas designated as Enterprise Zones. The program is administered locally by the City of Greenville and its ultimate success depends on investment and job creation.

There are currently 96 Enterprise Zones located throughout the State of Illinois.

Businesses located in an enterprise zone are eligible for numerous tax incentives. They are as follows:
 
Tax Exemptions

    • state sales tax exemptionis permitted on building materials to be used in an enterprise zone as long as they are purchased from a qualified retailer in Illinois and affixed to real property of a qualified project in a municipality and/or county that has an established enterprise zone for which a certificate of eligibility for sales tax exemption has been issued and signed by the zone administrator and is accompanied by a signed purchasers’ statement.  35 ILCS 120/5k, as amended (86 Ill. Admn. Code 130.1951) and (14 Ill. Adm. Code 520.1100) 
    • A state sales tax exemption is available on purchases of tangible personal property to be used or consumed in the manufacturing or assembly process or in the operation of a pollution control facility. This is contingent upon a business making a $5 million investment which causes the creation of 200 fulltime equivalent jobs in an Illinois Enterprise Zone or a $40 million investment which causes the retention of 2,000 full-time jobs in an Illinois Enterprise Zone or an investment of $40 million which causes the retention of 90% of the existing jobs. A business must make application to DCEO documenting the eligible investment and that the job creation or retention criteria has been met.  35 ILCS 120/1d - 1f (86 Ill. Adm. Code title 130.1951) and (14 Ill. Adm.Code 520.1000) 
    • A state utility tax exemption on gas, electricity and the ICC administrative charge, as well as, telecommunication excise tax on originating calls. Local units of government may also exempt their taxes on gas, electricity and water. 65 ILCS 5/8-11-2. This is contingent upon a business making a $5 million investment which causes the creation of 200 full-time equivalent jobs in Illinois or a $175 million investment which causes the creation of 150 full-time equivalent jobs since June 16, 1997, or a $20 million investment which causes the retention of 1,000 full-time equivalent jobs in Illinois. A business must make application to DCEO documenting the eligible investment and that the job creation or retention criteria has been met.  220 ILCS 5/9-222.1 and 35 ILCS 630 (86 Ill. Adm. Code 510.131) and (14 Ill. Adm. Code 520.900)

Tax Credits

  • A state investment credit of .5 percent is allowed for qualified property in a zone. Qualified property includes machinery, equipment and buildings. This credit may be carried forward for up to five years. This is in addition to the regular .5 percent investment tax credit throughout the state as well as a .5 percent for employers that increase their employment in Illinois by one percent over the preceding year.  35 ILCS 5/201(f) (86 Ill. Adm. Code title 100.2110) and (14 Ill. Adm. Code 520.800)

Income Tax Deductions

  • Businesses may deduct, from taxable income, double the value of a cash or in-kind contribution to an approved project of a designated zone organization.  An application is required to be submitted to DCEO for approval on the designated zone organization as well as the proposed project.  35 ILCS 5/203(b)(2)(N)(14 Ill. Adm. Code 520.500)


Local Incentives

  • Property Tax Abatement - Provides 100% property tax abatement for any portion of its taxes on real property located within a zone and upon which new improvements have been constructed, renovated or rehabilitated as per local ordinance. Abatements shall be for 3 years for commercial property, 5 years for multi-family residential property, and 7 years for industrial property.  A Tax Increment Financing (TIF) district may be included in the legal description of zone and consequently be eligible to receive tax incentives and benefits other than property tax abatement. The property tax abatement provision, however, must exclude the TIF district from the area eligible for abatement. 35 ILCS 200/18-170
  • Homestead program - Provides for the State and an enterprise zone governmental unit to sell an individual a residence for a sum not to exceed $100 if the individual agrees to live in the residence for a period of seven years and to renovate or remodel the property to meet the level of maintenance as stated in the agreement. Upon fulfillment of the agreement the property is then assigned to the individual at the end of the seven year term. 
  • Shopstead program - Provides for an enterprise zone governmental unit to sell to a designated zone organization property for a sum not to exceed $100 if the organization agrees to renovate or remodel the property to meet the level of maintenance as stated in agreement. Upon fulfillment of the agreement the property is then assigned to the organization.
  • One-stop building and zoning permit processing
  • Employee training, and financial assistance
  • Maximum development assistance by qualified staff 
  • Special local financing programs (Revolving Loan Fund)