Belvidere-Boone County Enterprise Zone...Explained

Belvidere-Boone County Enterprise Zone...Explained Main Photo

28 Jun 2021


Boone County in Focus

WHAT IS AN ENTERPRISE ZONE?

Enterprise Zones are designed to stimulate economic growth and neighborhood revitalization in specified areas, through state and local tax incentives, regulatory relief and improved governmental services. The goal is to encourage private economic development and job creation.

The Belvidere-Boone County Enterprise Zone is managed by Boone County, City of Belvidere, Village of Poplar Grove and Village of Capron.  Growth Dimensions Economic Development facilitates the Enterprise Zone application, process and follow-up with businesses that take advantage of the incentives.

WHERE IS THE BELVIDERE-BOONE COUNTY ENTERPRISE ZONE LOCATED?

The Belvidere-Boone County Enterprise Zone is part of the Illinois Enterprise Zone. It exists within identified areas within Belvidere, Poplar Grove and Capron, Illinois.  As seen in the map below, the areas mapped out in “yellow” signify where the Enterprise Zones are located.

 

WHAT’S IN IT FOR THE BUSINESS OWNER?

When a property is located within the Belvidere-Boone County Enterprise Zone, they may be able to receive one or more of the following incentives:

Local Incentives

Property Tax Abatement

Within the Belvidere-Boone County Enterprise Zone, property taxes are abated on improvements to commercial and industrial properties in increments of 80% the first year, 60% the second year, 40% the third year and 20% the fourth year. The abatement is for the portion of taxes on improvements to the property.

Additional property tax abatements are available for individual industrial taxpayers who construct further improvements beyond those that were abated in the above incentive or who cause their suppliers to construct new improvements. If the improvements total at least $2 million, property taxes are abated in increments of 80% the first year, 60% the second year, 40% the third year and 20% the fourth year. If improvements are a fraction of $2 million, the abatement will be adjusted proportionately.

The abatement applies only to taxes on the increase in assessed value attributable to the new construction, renovation, or rehabilitation. Taxes based on the assessed value of land and existing improvements continue to be collected.

By state law, any time property is improved it must be reassessed.

Building Permit Fee Reduction

50% of any building permit fee will be waived when an Enterprise Zone is application is completed and certain information related to development activity within the Zone is provided at the time the permit is requested. Otherwise, an applicant will be required to pay the full permit fee.

 

State Incentives

Building Materials Sales Tax Exemption

Illinois State Sales Tax, of 6.25%,  is exempt on building materials incorporated into real estate located in the Enterprise Zone. The exemption applies to building and construction materials used for remodeling, rehabilitation or new construction.

Qualifying Building Materials

Building materials that are eligible for the Enterprise Zone sales tax deduction include items that are permanently affixed to real property such as lumber, mortar, glued-down carpets, paint, wallpaper and similar affixed items.

Non-qualifying Items

Items that are not physically incorporated into the real estate cannot qualify for the exemption. Some examples are tools, machinery, appliances and floor coverings not permanently affixed to the property.

LEARN MORE: BUILDING MATERIALS SALES TAX EXEMPTION

Investment Tax Credit

The Investment Tax Credit is a 0.5 percent credit against the state income tax for investments in qualified property which is placed in service in an Enterprise Zone. This credit is in addition to the existing 0.5 percent investment tax credit allowed statewide against the corporate personal property replacement tax.

The investment tax credit applies against gross income subject to Illinois income tax and to the depreciable basis of qualified property placed in service within the Zone. It is a one-time credit given in the taxable year in which the property is placed in service. If the amount of the credit exceeds the tax liability for that year, the excess may be carried forward and applied to the tax liability of the five taxable years following the excess credit year.

LEARN MORE: INVESTMENT TAX CREDIT

 

Other Incentives

UTILITY TAX EXEMPTION

MM/E SALES TAX EXEMPTION

 

FURTHER INFORMATION

If you or someone you know would like to learn more about the Belvidere-Boone County Enterprise Zone, contact Growth Dimensions Economic Development at 815.547.4252 or info@growthdimensions.org.

You can also learn more through the Department of Commerce & Economic Opportunity