Enterprise Zone

To help local companies expand and create employment opportunities for Chicago residents.

Eligible Business Type:

Industrial

Eligible Business Size:

0-25 employees

Administrator:

City of Chicago

Benefits:

Sales Tax Exemption - A combined Chicago, Cook County and Illinois sales tax exemption on building materials purchased from an Illinois retailer for the renovation or new construction of real estate located within a Chicago Enterprise Zone.
Investment Tax Credit - An Illinois Tax credit of 0.5 percent is available for investment in machinery, equipment and/or buildings in an Enterprise Zone.
Jobs Tax Credit - A $500 Illinois Income Tax credit is available for each job created by a business in an Enterprise Zone for businesses that hire at least five individuals certified by the state as dislocated or disadvantaged.
Machinery and Equipment Sales Tax Exemption - The State of Illinois provides a 6.25 percent state sales tax exemption on machinery and equipment used in manufacturing, assembly or pollution control within an Enterprise Zone.
Utility Tax Exemption - A state utility tax exemption on gas, electricity and administrative charges is available to certified businesses within Enterprise Zones.
Illinois Gas Use Tax Exemption - A gas use tax exemption on natural gas purchased outside of Illinois is available to certified businesses within Enterprise Zones.
Real Estate Transaction Tax Exemption - A Chicago Transaction Tax Exemption is available within an Enterprise Zone for transfer of title of real estate property that is used primarily for commercial or industrial purposes.
Facility Bonds (EZ Bonds) - The City of Chicago issues tax-exempt Enterprise Zone Facility Bonds (EZ Bonds) to qualified commercial and manufacturing businesses located in federally designated Empowerment Zones in order to finance buildings, equipment and land.
Class 7(a) - Offers real estate tax incentives for commercial projects that do not exceed $2 million, would not be economically feasible without the incentive and are located within designated Redevelopment Areas, Empowerment Zones or Federal Enterprise Zones.
Loan Program (EZ/PLP) - Works through banks and other conventional lending institutions to provide subordinated financial assistance to Illinois small businesses in Enterprise Zones that employ Illinois workers (functions the same as a normal PLP, except at a lower loan rate).