Standard Benefits

Description

The Upper Illinois River Valley Development Authority (UIRVDA) administers the UIRVDA Enterprise Zone (UVEZ). The Enterprise Zone Program is designed to provide state tax incentives that 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.

Economics Illinois Business investment

Eligibility

  • A business must be in the designated territory of the Enterprise Zone in order to receive benefits.
  • The UVEZ can be expanded by the Authority to any property in the counties of Bureau, Grundy, Kane, Kendall, Lake, LaSalle, Marshall, McHenry and Putnam.
  • Companies wishing to be in the UVEZ must apply to UIRVDA requesting the zone be expanded to include their property before any capital expenditures are made.
  • The project must create “substantial utility” as measured by investment, jobs and economic impact.
  • The UVEZ territory can be up to twelve square miles.

Benefits

  1. Sales Tax Exemption on Building Materials  – A state sales tax exemption is permitted on the purchase of building
    materials to be used in an Enterprise Zone This is the 6.25% State Sales Tax and any other local sales tax.
    Materials must be permanently affixed to the property and purchased within the State of Illinois to qualify.
  2. EZ Investment Tax Credit– A State investment tax credit of one-half percent (0.5%) is allowed to a taxpayer who
    invests in qualified property in an Enterprise Zone. Qualified property includes machinery, equipment and
    buildings that are both tangible and depreciable under IRS section 167 (i.e. qualified property must produce
    income and be subject to wear, tear and exhaustion). The credit may be carried forward for up to five years.
  3. EZ Natural Gas Use Tax Exemption (Wheeling Exemption) – A state natural gas use tax exemption is permitted on
    the purchase of natural gas from outside of Illinois for use in Illinois at the rate of 2.4 cents per therm or 5% of the
    purchase price for the billing period, whichever is the lower rate.
  4. Utility Tax Exemption – A State utility tax exemption on the 5.1% natural gas, electricity and the Illinois Commerce Commission’s administrative charge and telecommunication excise tax is available to businesses located in enterprise zones. Eligible businesses must make: an investment of at least $5 million in qualified property and create a minimum of 200 full-time-equivalent jobs; invest $175,000,000
    and create 150 full-time-equivalent jobs or invest $20,000,000 and retain 1,000 full-time jobs.
  5. Consumables Tax Exemption – A State sales tax exemption on all tangible personal property used or consumed within an enterprise zone in the process of manufacturing or assembly of tangible personal property for wholesale or retail sale or lease is available for businesses located in an enterprise zone. Examples include: repair and replacement parts, fuels, supplies for the maintenance, repair or operation, abrasives,
    acids, lubricants, protective clothing, safety equipment and any fuel used for machinery and equipment. Eligible businesses must make an investment of at least $5 million in qualified property and create a minimum of 200 full-time-equivalent jobs or retain a certain number of jobs and make a larger investment.
application, request, ipad

Application

Companies interested should compete 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.

Apply Today