Madison County Discovery Enterprise Zone Information and Application

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1 Madison County Discovery Enterprise Zone Information and Application Thank you for your interest in the Madison County Discovery Enterprise Zone Program. An Enterprise Zone is a specific area designated by the State of Illinois in cooperation with a local government to receive various tax incentives and other benefits to stimulate economic activity and neighborhood revitalization. A contiguous area of portions of unincorporated Madison County and the municipalities of Collinsville, Glen Carbon, Highland, St. Jacob, Maryville, and Troy were designated as an Illinois Enterprise Zone area on January 1, As a result of this designation, these local units of government are able to offer the following special State and local incentives to promote and encourage economic development within the Madison County Discovery Enterprise Zone. Sales Tax Exemption: A sales tax exemption on building materials used to improve and/or renovate real property for qualified commercial, industrial or manufacturing projects within the Enterprise Zone is available to individuals and businesses that purchase building materials from Illinois retailers or suppliers. To receive this sales tax exemption, contractors or businesses need only provide the retailer with the approved Sales Tax Exemption Certificate. Certificates are issued by the Madison County Discovery Enterprise Zone Administrator, generally within 72 hours after submittal of the applicant s Project Information Intake Form. Certificates must be renewed annually. The number of Certificates is unlimited during the life of the Zone. Enterprise Zone Machinery and Equipment Exemption: A 6.25 percent State sales tax exemption is available on purchases of tangible personal property to be used or consumed in the manufacturing or assembly process or in the operation of a pollution control facility within an Enterprise Zone. Eligibility for this exemption is contingent upon a business making a $5 million investment which causes the creation of 200 full-time equivalent jobs in Illinois; an investment of $40 million for the retention of 2,000 full-time jobs in Illinois; or an investment of $40 million and the retention of 90 percent of the jobs in place on the date of certification. The majority of the jobs created or retained must be located within the Enterprise Zone in which the investment occurs. The exemption is applicable to the following: (a) Hand tools used to maintain, repair, or operate machinery and equipment; (b) Abrasives, acids, polishing compounds, or lubricants used or consumed in the manufacturing or assembly process; (c) Coolants, adhesives, solvents, or cleaning compounds used to maintain, repair, or operate machinery and equipment; (d) Manufacturing fuels; (e) Protective clothing and safety equipment; (f) Fuels, chemicals, and catalysts used in the operation of pollution control facilities. A business must make application to the Illinois Department of Commerce and Economic Opportunity (DCEO) to receive this exemption. For more information contact DCEO at (217)

and neighborhood revitalization. A contiguous area of portions of unincorporated Madison County and the municipalities of Collinsville, Glen Carbon, Highland, St.

2 Utility Tax Exemption: A State utility tax exemption on gas, electricity, and the Illinois Commerce Commission's administrative charge is available to businesses located in an Enterprise Zone. Eligibility for this exemption is contingent upon a business making a $5 million investment which causes the creation of 200 full-time equivalent jobs in Illinois; or an investment of $20 million for the retention of 1,000 full-time jobs in Illinois. The majority of the jobs created or retained must be located within the Enterprise Zone in which the investment occurs. A business must make application to the Illinois Department of Commerce and Economic Opportunity (DCEO) to receive this exemption. For more information contact DCEO at (217) 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 5 years. This credit is in addition to the regular 0.5 percent investment tax credit which is available throughout the State and a.5 percent credit for taxpayers that increase their employment in Illinois by 1 percent over the preceding year. For additional information on Investment Tax Credits please consult your tax advisor. Additional Business Assistance Programs: Businesses that locate or expand their operations within the Madison County Discovery Enterprise Zone are also eligible to receive financial, training, and general technical assistance from a wide variety of business assistance programs designed to encourage businesses to retain, expand, or locate their facilities in Madison County. For Additional Information Contact: John J. Herzog Austin Korns Economic Development Coordinator OR Economic Development Specialist (618) (618) jjherzog@co.madison.il.us ackorns@co.madison.il.us

the retention of 1,000 full-time jobs in Illinois. The majority of the jobs created or retained must be located within the Enterprise Zone in which the investment occurs.

3 Madison County Discovery Zone Project Information Intake Form Sales Tax Exemption Business Information Business Name: Business Address: Business City: State: Zip: Business Owner Name: Phone Number: Address: Federal Employer s Identification Number (FEIN) of Business: Please indicate who will be purchasing the building materials: Business Owner Contractor Project Information Project Name: Project Address (if different than above): Project City: State: Zip: Madison County Parcel ID Number: Does this project involve a move from another location? Yes No If yes, indicate City and State:

will be purchasing the building materials: Business Owner Contractor Project Information Project Name: Project Address (if different than above):

4 General Project Description: Project Classification: Commercial Industrial Estimated Project Start Date: Estimated Project Completion Date: Estimated Cost of: Remodeling/Rehabilitation: New Construction: Capital Equipment: Site: Number of Full-Time Equivalent Jobs: Presently at project location: Retained*: Created within 2 years of project completion**: * Retained means the number of permanent jobs that will remain in the zone as a result of the new investment being made. ** Created means the number of jobs for which persons are hired or are expected to be hired within 2 years of project completion as a result of the new investment, not including construction jobs or spin-offs that may be created.

project completion**: * Retained means the number of permanent jobs that will remain in the zone as a result of the new investment being made.

5 Signature of Business Owner/Project Representative: Name Title Date Contractor Information (If contractor is used) Contractor: Address: City: State: Zip: Phone Number: Address: Federal Employer s Identification Number (FEIN) of Contractor: Total Contract Amount: Estimated Percentage of Contract Consisting of Qualifying Materials: Estimated Dollar Amount of Qualifying Materials: Signature of Contractor Representative: Name Title Date Please Completed Form To: (Submittal via will accelerate the approval process). John J. Herzog Austin Korns Economic Development Coordinator OR Economic Development Specialist (618) (618) jjherzog@co.madison.il.us ackorns@co.madison.il.us

Dollar Amount of Qualifying Materials: Signature of Contractor Representative: Name Title Date Please Email Completed Form To: (Submittal via email will accelerate the approval

Business Owners Guide to Illinois Tax Benefits

Business Owners Guide to Illinois Tax Benefits DEVELOPMENT INCENTIVES For New and Existing Businesses Leon Rockingham, Jr. Mayor Figure 1. Waukegan-North Chicago Enterprise Zone Page 3 Incentives Sales Tax Exemption. A 6.25 percent sales tax exemption