The Illinois Enterprise Zone (“EZ”) program was originally established in Chicago in 1982 in order 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.” As of 2024, there are six Enterprise Zones which cover nearly 30 percent of the City.

The Department of Planning and Development administers the issuance of Building Materials Exemption Certificates:

Building Materials Sales Tax Exemption – A sales tax exemption is permitted on building materials to be used for projects within an Enterprise Zone. Materials must be permanently affixed to the property and must be purchased from a qualified retailer. To apply, submit the application linked below to the contact email provided below.
Contact: ezadministrator@cityofchicago.org
Application: EZ Building Materials Exemption Certificate Application

PLEASE NOTE: Property/Business Owners (or lessees) must have a certificate in order for General/Sub-Contractors to apply. All applicants must include their State Applicant ID on their application before it can be processed.

Enterprise Zone Maps:

• State of Illinois Interactive Enterprise Zone Map
• Chicago Enterprise Zone Maps (pdf versions): Zone 1; Zone 2; Zone 3; Zone 4; Zone 5; Zone 6

The EZ program offers a wide-variety of benefits that are administered by other City departments or State agencies. Those include:

1. Real Estate Transfer Tax Exemption – Commercial and industrial properties purchased within Enterprise Zones are eligible for an exemption from Chicago's Real Estate and Transfer Tax; for more information, see contact below.
   Contact: Chicago Department of Finance, Tax Collection and Enforcement
   
   
2. Machinery & Equipment Sales Tax Exemption – A 6.25 percent state sales tax exemption on purchases of tangible personal property to be used in the manufacturing or assembly process or in the operation of a pollution control facility within an Enterprise Zone is available. Eligibility is based on a business making an investment in an Enterprise Zone of at least $5 million in qualified property that creates a minimum of 200 full-time-equivalent jobs, a business investing at least $40 million in a Zone and retaining at least 2,000 jobs, or a business investing at least $40 million in a Zone which causes the retention of at least 90 percent of the jobs existing on the date it is certified to receive the exemption; for more information, see contact below.
   Contact: Christofer Albert, Enterprise Zone Manager, Illinois Business Development Office, Illinois Department of Commerce and Economic Opportunity at 217.524.0615 or Albert@illinois.gov
   
   
3. Utility Tax Exemption – A state utility tax exemption on gas, electricity and the Illinois Commerce Commission's administrative charge and telecommunication excise tax is available to businesses located in Enterprise Zones. Eligible businesses must make an investment of at least $5 million in qualified property that creates a minimum of 200 full-time-equivalent jobs in Illinois, an investment of $20 million that retains at least 1,000 full-time-equivalent jobs, or an investment of $175 million that creates 150 full-time-equivalent jobs in Illinois. The majority of the jobs created must be located in the Enterprise Zone where the investment occurs.
   Contact: Christofer Albert, Enterprise Zone Manager, Illinois Business Development Office, Illinois Department of Commerce and Economic Opportunity at 217.524.0615 or Albert@illinois.gov
   
   
4. Enterprise Zone Investment Tax Credit – A state investment tax credit of 0.5 percent is allowed a taxpayer who invests in qualified property in an Enterprise Zone. Qualified property includes machinery, equipment and buildings. The credit may be carried forward for up to five years. This credit is in addition to the regular 0.5 percent investment tax credit, which is available throughout the state, and up to 0.5 percent credit for increased employment over the previous year.
   Contact: Illinois Department of Revenue at 1.800.732.8866 or 217.782.3336 or EZreporting@illinois.gov
   
   
5. Contribution Deduction – Businesses may deduct double the value of a cash or in-kind contribution to an approved project of a designated Enterprise Zone organization from taxable income.
   Contact: Illinois Department of Revenue at 1.800.732.8866 or 217.782.3336 or EZreporting@illinois.gov.

A full description of the Enterprise Zone Program Incentives may be found at: State of Illinois - Enterprise Zone Program Incentives

Related Links:

Illinois Department of Commerce & Economic Opportunity
Illinois Department of Revenue - Business Incentives
Illinois Enterprise Zone Association