State of Illinois Business Incentives
• Illinois EDGE Program
State tax incentives encourage business growth. One example includes a number of sales tax exemptions: manufacturing machinery as well as replacement parts and computers used to control manufacturing machinery; farm machinery; pollution controls, building materials bought in and used in an Illinois Enterprise Zone; and materials consumed in the manufacturing process in Illinois Enterprise Zones (certain job creation criteria apply). Purchasers of manufacturing machinery receive a credit equal to 50 percent of what the taxes would have been if the manufacturing machinery was taxable, making it possible for the manufacturers to use this credit to offset any other sales tax liability they incur.

• Participation Loan Program
• Minority, Women and Disabled Participation Loan Program
• Enterprise Zone Financing Program
• Development Corporation Participation Loan Program
• Capital Access Program (CAP)
• The Technology Venture Investment Program (TVIP)
• Surety Bond Guaranty Program
• Business Development Public Infrastructure Program
• Affordable Financing of Public Infrastructure Program
• Enterprise Zone Program
• Community Development Assistance Program (CDAP)
• Community Services Block Grant Loan Program (CSBG)
• Large Business Development Program
• Industrial Training Program (ITP)

Illinois Development Finance Authority Programs
• Industrial Revenue Bonds
• Participation Loan Program
• Title IX Revolving Loan Fund
• Rural Development Loan Program
• Venture Capital Program
• MicroLoan Program

Illinois Farm Development Authority Programs
• Agri-Industries Guarantee Program

Office of the State Treasurer Program
• State Treasurer’s Economic Program (STEP)
Step provides Illinois companies with access to affordable capital to expand their operations and retain or create jobs in the state. For each permanent full-time job (two part-time jobs equal one full-time job) that is created or retained, the Treasurer can deposit up to $25,000 at below market rates into the borrower’s financial institution. That institution will then lend the money at below prevailing interest rates to the borrower.

Illinois Department of Transportation (IDOT) Programs
• Economic Development Program (EDP)
• Truck Access Route Program (TARP)
• Rail Freight Program (RFP)

STATE OF ILLINOIS ENTERPRISE ZONE BENEFITS*
6.25% Sales Tax Exemption on Building Materials
An exemption of the 6.25% state sales tax on the purchase of building materials to be incorporated into real estate within the boundaries of the Enterprise Zones located in this Southeastern Illinois group. This incentive is available for both industrial projects and national/regional office projects involving either new construction, or the rehabilitation and/or expansion of an existing facility. In order to qualify for the sales tax exemption on building material purchases, each of the following requirements must be met:

(1) The building materials must be permanently affixed to the real estate within the enterprise zone for which the sales tax exemption is being sought (a Purchaser’s Statement to this effect must be signed for the materials retailer/vender by the purchaser at the time of the sale).

(2) The building materials must be purchased through a legitimate, qualifying building materials retailer/distributor located within the enterprise zones in the nine-county Southeastern Alliance of Illinois Region.

Illinois Income 0.5% Investment Tax Credit

A stated investment tax credit of 0.5% is offered to taxpayers making investments in qualified property includes machinery, equipment and buildings. This credit is in addition to the regular 0.5% investment tax credit available by the State of Illinois.

Local Building Permit and Tap on Fee Waivers

Building, electrical and plumbing permits are required for all projects, except in unincorporated areas of the nine-county Southeastern Alliance of Illinois region.

$500 Per Job Tax Credit
A business may receive a $500 Illinois income tax credit for each job created within the zone for which a certified economically disadvantaged or dislocated worker, (as defined by the Job Training Partnership Act), is hired. In order to qualify for the credit, a minimum of five workers must be hired during the business’ taxable year.

Interest Deduction
Financial institutions are not taxed on the interest received on loans for development projects located within an enterprise zone, thereby indirectly assisting the developing business in their financing.

Enterprise Zone Utility Tax Sales Tax Exemption
For a business certified by the state as making an investment within the enterprise zone of $5 million or more and creating a minimum of 200 full-time equivalent jobs; or investing $40 million and retaining 2,000 or more full-time jobs, a 4% state sales tax exemption is available on all tangible personal property (e.g., selected machinery and equipment, raw materials, inventory, component parts, supplies, manufacturing fuels, etc.). The tangible property must be used or consumed within the enterprise zone in the process of manufacturing or assembling goods for wholesale or retail sale.

5% Enterprise Zone Pollution Control Investment
Sales Tax Exemption
For a business which is certified by the state, as making an investment within the enterprise zone of $5 million or more and creating a minimum of 200 full-time equivalent jobs; or investing $40 million and retaining 2,000 or more full-time jobs, a 5% state sales tax exemption is available on tangible personal property (e.g. machinery, equipment, supplies, etc.) used or consumed in the operation of pollution control facilities.

*Local Enterprise Zone Benefits Also Available.