Utility Tax Exemption Program

Description

The Upper Illinois River Valley Development Authority (UIRVDA) administers the UIRVDA Enterprise Zone (UVEZ). The 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 the 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 utility taxes if they:

  • Create 200 full-time-equivalent jobs and invest at least $5 million in qualified property; or
  • Create 150 full-time-equivalent jobs and invest at least $175,000,000; or
  • Retain 1,000 full-time-equivalent jobs and invest at least $20,000,000.

For purposes of this incentive, eligible investment may be either: investments in qualified property as defined in the Enterprise Zone Investment Tax Credit; or, 2) 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

Natural Gas Tax Exemption

Lower of 2.4 cents per therm or 5.0% of the customers billing period
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Electric Tax Exemption

5.1% tax and the Illinois Commerce Commission’s administrative charge
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Broadcasting Excise Tax

Available to businesses located in enterprise zones, specific to Telecommunications
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Five Year Certification

Certification can be renewed in five-year increments for up to thirty years
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Jobs Created and Retained

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

Apply Today