Enterprise Zones

Enterprise Zones

There are currently seven Enterprise Zones in Southwestern Illinois, several of which SWIDA has helped to create. All offer the same mix of state incentives designed to encourage companies to locate or expand within a zone. In addition, each zone offers distinctive local incentives to enhance business or neighborhood development efforts. Such local incentives include:

  • Abatement of property taxes on new improvements
  • Waiver of business licensing and permit fees
  • Streamlined building code and zoning requirements
  • Special local financing programs and resources

 

State Incentives Specific to Enterprise Zones

Sales Tax Exemption: A 6.25 percent state sales tax exemption is permitted on building materials to be used in an Enterprise Zone.

Machinery and Equipment Sales Tax Exemption: A state sales tax exemption is available on certain types of equipment used within an Enterprise Zone.

Utility Tax Exemption: A state utility tax exemption is available to companies that create 200 new jobs or retain 2,000 jobs within a zone.

Investment Tax Credit: A state income tax credit of 0.5 percent is allowed on qualified investments in each zone.

Dividend Income Deduction: Dividend income from companies doing substantially all their business in each zone is free from state taxation.

Jobs Tax Credit: A state tax credit of $500 per qualified job is available to employees in each zone.

Interest Deduction: Financial institutions are not taxed on interest received from loans for development within a zone.

Contribution Deduction: Businesses may deduct double the cash value of contributions made to designated zone organizations