Section 520.700  List of Available Tax Incentives

a)         Several tax incentives are available to businesses in Enterprise Zones and those designated as a High Impact Business.  The following four are available to both Enterprise Zones and High Impact Businesses:

1)         Investment Tax Credit found in the Illinois Income Tax Act [35 ILCS 5/201(f) and (h)];

2)         Utility Tax Exemption found in the Public Utilities Act [220 ILCS 5/9-222.1 and 9-222.1A];

3)         Machinery and Equipment/Pollution Control Facilities Sales Tax Exemption found in the Retailers' Occupation Tax Act [35 ILCS 120/1d - 1f]; and

4)         Building Material Sales Tax Exemption found in the Retailers' Occupation Tax Act [35 ILCS 120/5k and 5l].

b)         Two tax incentives available to High Impact Businesses that are located within a Foreign Trade Zone or Sub-Zone:

1)         Dividend Income Deduction found in the Illinois Income Tax Act [35 ILCS 5/203(a)(2)(K), (b)(2)(L), (c)(2)(O) and (d)(2)(M)]; and

2)         Interest Income Deduction for Financial Institutions found in the Illinois Income Tax Act [35 ILCS 5/203(b)(2)(M) and (M-1).

c)         A tax incentive available to businesses in Enterprise Zones as well as High Impact Businesses located within a Foreign Trade Zone or Sub-Zone is the Telecommunications Excise Tax Exemption on Originating Calls found in the Telecommunications Excise Tax Act [35 ILCS 630].

d)         A special tax incentive exists that is limited only to a High Impact Business Service Facility in an Enterprise Zone.  This tax incentive is known as the High Impact Service Facility Machinery and Equipment Sales Tax Exemption and is found in the Retailers' Occupation Tax Act [35 ILCS 120/li and 1j].

e)         A tax incentive is available to a certified High Impact Business labeled the High Impact Business construction jobs credit, which is only available to businesses that have been designated as High Impact Businesses by the Department (see 35 ILCS 5/201(h-5)).

f)         A tax incentive available to businesses located within a certified Enterprise Zone is the Enterprise Zone construction jobs credit (see 35 ILCS 5/201(a) and (b)).

(Source:  Amended at 46 Ill. Reg. 1817, effective January 11, 2022)