Tax Assistance

Tax Assistance 2017-11-10T12:48:09+00:00

Our service area has access to a competitive range of incentives for locating and expanding your business including tax credits and exemptions that encourage business growth and job creation. The MCILEDC service area brings an enterprise zone to the table and will additionally work with the state of Illinois to secure enterprise zone-like benefits to larger scale projects that wish to locate in the region. Contact ekoch@mciledc.com for help in accessing these tax assistance programs.

American Bottom Enterprise Zone: The Dupo segment of our service area features access to a portion of the American Bottom Enterprise Zone which can be used in combination with their TIF District Incentives. The following are some benefits of locating a development project in this Enterprise zone:

  • Investment Tax Credit – A state investment tax credit of .5% is allowed a taxpayer who invests in qualified property in a zone. Qualified property includes machinery, equipment, and buildings. The credit may be carried forward for up to five years. Credit is applied toward the 5.25% State Corporate Income Tax.
  • Building Materials Sales Tax Exemption – Sales Tax Exemptions on retailer’s occupation tax paid on building materials purchased in Illinois.
  • Machinery and Equipment Tax Exemption – Expanded State sales tax exemption on purchases of tangible personal property used or consumed in manufacturing or assembly processes, when company makes $5 million investment and employs 200 or more.
  • 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 that locate in an Enterprise Zone. Eligibility for this exemption is contingent upon a business making a $5 million investment which causes the creation of 200 jobs. Should the company reach 200 full time employees, the company will be eligible for an exemption at that time. (Utility Tax: 5.1%; Telecom Tax: 7%)

ILDCEO EDGE Tax Credit:  The EDGE program provides an incentive to qualifying businesses to support job creation and capital investment. This 10 year Illinois corporate income tax credit is calculated as a percentage (not to exceed 100%) of the expected income tax withheld from the salaries of employees in newly created jobs.  Company applicants with more than 100 employees must make an investment of at least $2,500,000 in capital improvements  and  employ a number of new employees in Illinois equal to  the lesser of (a) 10% of the number of full-time employees employed by the applicant world-wide or (B) 50 new employees.   Company applicants with 100 or fewer employees have no capital investment requirement, but must employ a number of new employees in Illinois equal to the lesser of (A) 5% of the number of full-time employees employed by the applicant world-wide or (B) 50 new employees.  Manufacturing, processing, assembling, warehousing, or distributing products, and corporate headquarters are qualifying businesses.   Retail, retail food, health, or professional services are excluded. To be eligible, qualifying companies must demonstrate that, if not for the Credit, the project would not occur in Illinois. Timing is essential in staying eligible for the credits, so interested companies need to notify the state before a site selection decision is made and before any site limiting activities are undertaken.  If interested,  please contact our Executive Director at 618-806-4739 or ekoch@mciledc.com for more information and assistance.

ILDCEO High Impact Business Program (HIB): This state program supports large-scale economic development activities by providing tax incentives (similar to Enterprise Zones) to companies that invest a minimum of $12M and create 500 full-time jobs, or $30M investment with the retention of 1,500 full-time jobs. Investments must take place at designated locations in Illinois outside of an Enterprise Zone. Eligible businesses may qualify for: investment tax credits, a state sales tax exemption on building materials and/or utilities, a state sales tax exemption on purchases of personal property used or consumed in the manufacturing process or in the operation of a pollution control facility. (See American Bottom Enterprise zone for additional eligibility requirements for each tax credit or exemption). Must apply and be certified for HIB designation before project commencement, including purchase of building materials.