Enterprise and Opportunity Zones

The Illinois Enterprise Zone Program is designed to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state through state and local tax incentives, regulatory relief and improved governmental services.  Businesses located or expanding in an Illinois enterprise zone may be eligible for the following state and local tax incentives:

State Incentives and Exemptions

• Exemption on retailers’ occupation tax paid on building materials
• Expanded state sales tax exemptions on purchases of personal property used or consumed in the manufacturing process or in the operation of a pollution control facility
• An exemption on the state utility tax for electricity and natural gas
• An exemption on the Illinois Commerce Commission’s administrative charge and telecommunication excise tax

Exemptions are available for companies that make minimum statutory investments that either create or retain a certain number of jobs.  These exemptions require a business to make application to, and be certified by, the Illinois Department of Commerce.

Local Incentives and Exemptions

In addition to state incentives, each zone offers local incentives to enhance business development projects.  Each zone has a designated local zone administrator responsible for compliance and is available to answer questions.  To receive a Certificate of Eligibility for Sales Tax Exemption, you must contact the local zone administrator of the zone into which purchased building materials will be incorporated.

Opportunity Zones were created as part of the Tax Cuts and Jobs Act of 2017. Opportunity Zones provide an incentive for investors to invest in Opportunity Zones for certain tax benefits on capital gains. The Canton/Fulton County, Opportunity Zone is open for business.