Consumables Sales Tax Exemption Program

Description

The Upper Illinois River Valley Development Authority (UIRVDA) administers the UIRVDA Enterprise Zone (UVEZ). The Illinois Enterprise Zone Program allows companies with large investments and jobs to be eligible for EXPANDED state tax exemptions as incentives to encourage businesses to make a new investment on property within the Zone. This stimulates business activity and creates new employment opportunities. Local units of government can opt to also provide local incentives in an Enterprise Zone.

Eligibility

A business must be located in the designated territory in Illinois counties of Bureau, Grundy, Kane, Kendall, Lake, LaSalle, Marshall, McHenry and Putnam.

A business in an enterprise zone is eligible to receive an exemption of sales taxes on all tangible personal property used or consumed within and enterprise zone in the proves of manufacturing or assembly of tangible personal property for wholesale or retail sale or lease if they:

Create 200 full-time-equivalent jobs and invest at least $5 million in qualified property; or
Retain 2,000 full-time-equivalent jobs and invest at least $40,000,000; or
Retain 90% of their existing jobs and invest at least $40,000,000.

Eligible investment may be either: investments in qualified property as defined in the Enterprise Zone Investment Tax Credit; or, non-capital and non-routine investments and associated service costs made for the basic construction, renovation or improvement of qualified property including productive capacity, efficiency, product quality or competitive position. Regular maintenance and routine expenditures are not included.

Benefits

Each certification is for a period of five years and can be renewed in five-year increments for up to thirty years.

The program allows created or retained contractor jobs that work 35 hours per week or 1,820 hours per year.

This Exemption Includes:

Repair and replacement parts for machinery and equipment used primarily in the wholesale or retail sale or lease

equipment costs

manufacturing fuels

materials and supplies for the maintenance, repair or operation of manufacturing, or assembling machinery or equipment

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Apply Today!

Interested Companies should complete a one-page application and submit a non-refundable application fee. There is a zone administration fee paid when certification is issued. The cost of becoming part of the UVEZ is considerably less than the tax benefits you receive. The Illinois Department of Commerce and Economic Opportunity (DCEO) must certify that the business has made the investment in an enterprise zone and created or retained the jobs on date of certification. A business must submit a separate application to DCEO documenting the eligible investment and job creation criteria has been met along with an independent accounting firm “Agreed Upon Procedures” audit.