Enterprise Zone

SAVE MONEY IN THE ENTERPRISE ZONE

Business located within the Belvidere/Boone County (2016) Enterprise Zone can realize a significance savings when it comes to building, upgrading or expanding facilities. To learn if you are located in the Enterprise Zone or if you are looking to locate within the Entreprise Zone, view the map HERE.

Enterprise Zone Defined

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 state and local incentives.


BELVIDERE/BOONE COUNTY ENTERPRISE ZONE MAP

Enter a parcel id number or address, below, to determine if a property is located within the Enterprise Zone.


GETTING STARTED

If your business is located within the Belvidere-Boone County Enterprise Zone, you're eligible for additional benefits & incentives. For more information, contact Growth Dimensions Economic Development at 815.547.4252 or by email at office@growthdimensions.org.

You can also get started by filling out the application, below.

ENTERPRISE ZONE APPLICATION

PROJECT CLOSING FORM

Once you have completed your construction project within the Belvidere-Boone County Enterprise Zone, fill out and send the completed Project Closing Form, below. 

Completed forms can be emailed to office@growthdimensions.org or delivered to 401 Whitney Blvd., Belvidere, IL 61008.

PROJECT CLOSING FORM


BELVIDERE/BOONE COUNTY ENTERPRISE ZONE INCENTIVES

PROPERTY TAX ABATEMENT

Property taxes are abated on improvements to commercial and industrial properties in increments of 8 0% 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 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.



PROPERTY TAX ABATEMENT

Property taxes are abated on improvements to commercial and industrial properties in increments of 8 0% 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 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.


APPLY FOR A BUILDING PERMIT

BOONE COUNTY

Administration Building
1212 Logan Avenue Suite101
Belvidere, Illinois  61008
Phone: 815-544-6176

APPLICATION

CITY OF BELVIDERE

City Hall
401 Whitney Boulevard Suite 300
Belvidere, Illinois  61008
Phone: 815-547-7177

APPLICATION

VILLAGE OF POPLAR GROVE

Village Hall
200 N. Hill Street
Poplar Grove, IL  61065
Phone: 815-765-3201

APPLICATION

VILLAGE OF CAPRON

Village Hall
250 W. Main Street
Capron, IL  61012
Phone: 815-569-2351

APPLICATION

OTHER LOCAL BENEFITS


STATE INCENTIVES & EXEMPTIONS

BUILDING MATERIALS SALES TAX EXEMPTION

Enterprise Zone participants have been granted an exemption of the State, City and County sales tax. Sales tax is exempted 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.

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.

VIEW QUALIFIED MATERIALS

INVESTMENT TAX CREDIT

The Illinois Income Tax Act, 35 ILCS 5/201, as amended, allows corporations, trusts, estates, individuals, partners and Subchapter S shareholders 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.

UTILITY TAX EXEMPTION

The Public Utilities Act, 220 ILCS 5/9-222.1, as amended, and the Telecommunications Excise Tax Act, 35 ILCS 630/2(a)(5), as amended, allows a business enterprise certified by DCEO as making an investment in a Zone that either creates a minimum of 200 full-time equivalent jobs in Illinois or retains a minimum of 1,000 full-time jobs in Illinois, a 5 percent state tax exemption on gas, electricity and the Illinois Commerce Commission 0.1 percent administrative charge and excise taxes on the act or privilege of originating or receiving telecommunications. Local utility tax exemptions are not included in this this Exemption, however they may be separately exempted by local Ordinance.

OPEN MARKET NATURAL GAS TAX EXEMPTION

Companies who are located within the boundaries of an Illinois Enterprise Zone are entitled to an exemption on the state sales tax for “wheeled” or open market natural gas transactions. The Form RG-61 is located at the end of this document. Purchases must be from out-of-state vendors.

In order to receive the exemption, the Form RG-61 Gas Use Tax Exemption Certificate must be completed and given to your delivering supplier. If any of the information you provide on Form RG-61 changes, you must complete a new Form RG-61. Even if no changes are required, a new Form RG-61 must be completed every five years to keep state records current and the exemption intact.

MANUFACTURING MACHINERY AND EQUIPMENT (MM/E) SALES TAX EXEMPTION

The Revenue Act 35 ILCS 120/ld-lf, as amended, allows a business enterprise that is certified by DCEO as making a $5 million investment that either: creates a minimum of 200 full-time equivalent jobs in Illinois; or retains a minimum of 2,000 full-time jobs in Illinois; or which retains 90% of the existing jobs, a 6.25 percent state sales tax exemption on all tangible personal property which is 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. This exemption includes repair and replacement parts for machinery and equipment used primarily in the process of manufacturing or assembling tangible personal property for wholesale or retail sale or lease, and equipment, manufacturing fuels, material and supplies for the maintenance, repair or operation of manufacturing or assembling machinery or equipment.

POLLUTION CONTROL FACILITIES EXEMPTION

For eligible businesses, a sales tax exemption is available on tangible personal property (e.g., machinery, equipment, supplies, etc.) used or consumed within the Enterprise Zone in the operation of pollution control facilities. DCEO must certify the business as “eligible” to qualify, which means a business must make an investment in an Illinois Enterprise Zone that creates a minimum of 200 full time jobs or retains a minimum of 2,000 full time jobs.

FILL OUT DCEO FORM

 

NOTE: 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. 


As of 2017, applicants are required to be filled out by both the owner and the contractor. All information must be filled out in order for applications to be processed. If your project does not require you to have a building permit, please notify Growth Dimensions when you are submitting your applications. Applications must be submitted with the application fee. No applications will be processed without payment and all required information filled. Applications may take 1 to 3 business days to complete, and will be processed in the order they are received. All applications must follow up with Growth Dimensions to complete project and give final projected costs.

Beginning July 1, 2013 the building materials exemption will be available only to those contractors or other entities with a certificate issued by the Illinois Department of Revenue. Construction contractors or other entities seeking exemption certificates must go through the Belvidere-Boone County Zone Administrator.

*A Belvidere-Boone County Enterprise Zone Application and Administration Fee is now in effect. Approved Enterprise Zone projects requesting a sales tax exemption will be subject to a fee of ½ % of the total cost of construction materials included on the sales tax exemption application form. The maximum fee allowed by Public Act 97-905 is $50,000 per project. The fee will be due upon the issuance of the sales tax exemption certificate by the Zone Administrator, and a summary of construction materials costs must be provided to the Zone Administrator at the same time. Payment must accompany the application when submitted.


For more information, contact Growth Dimensions Economic Development at 815-547-4252 or email office@growthdimensions.org