Why invest in Chicago Southland?

Zone Benefits

For further verification on your location and benefits,

Please contact Mary Schmidt, Zone Assistant, at calumetregionezone@gmail.com.

You can either click on the button on the left to download the Calumet Region Zone application in PDF,

and email the scanned copy to Mary Schmidt for faster processing.

BUILDING MATERIALS STATE SALES TAX EXEMPTION (6.25% + LOCAL SALES TAX)

Enterprise Zone participants are granted an exemption from the State portion of sales tax on building materials totaling 6.25%. A valid Illinois Department of Revenue (IDOR) building material sales tax exemption certificate must be completed before the purchase of the materials in order to receive the exemption. The exemption applies to building and construction materials (e.g., lumber, mortar, paint, wallpaper, etc.) used for remodeling, rehabilitation or new construction. In addition, any local sales tax is also abated, which could end up being as much as 10% based on the location of where building materials were purchased.

Link to the Building Materials Exemption Certificate (BMEC)

Link to the Building Materials Sales Tax Exemption Certificate Template for Contractors/Subcontractors

Link to Building Materials Eligible for Enterprise Zone

BUILDING PERMIT FEE WAIVER

50% discount on local building permit fees. All other fees and inspection procedures follow local ordinances.

INVESTMENT TAX CREDIT (.50%)

A state investment tax credit of 0.5% is allowed to a taxpayer who invests in qualified property in the Calumet Region 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% investment tax credit, which is available throughout the state, and up to 0.5% credit for increased employment over the previous year.

MANUFACTURING MACHINERY & EQUIPMENT SALES TAX EXEMPTION (6.25%)

A 6.25% 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 the Calumet Region 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 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.

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.

Link to Manufacturing Machinery and Equipment/Pollution Control Facilities Sales Tax Exemption

Link to Request for Tax Clearance

COMMERCIAL & INDUSTRIAL PROPERTY TAX ABATEMENT INCENTIVE

A 50% abatement on the municipal portion of real estate taxes for 5 consecutive years beginning with the real estate taxes for the first full year of the facility's operation. However, if the project is receiving other substantial property tax abatements such as a TIF, Class 8 or 6B for example, the participant is not eligible for this part of the incentive.

UTILITY TAX DEDUCTION (5.10%)

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 the Calumet Region Enterprise Zone. 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.

Link to Utility Tax Exemption

RG-61 GAS USE TAX

Natural gas purchased from outside of Illinois for use in Illinois and if you are located in a State designated Enterprise Zone, you are exempt from paying Gas Use Tax. You must provide your delivering supplier with a completed certificate as your proof that no Gas Use Tax is due.

Link to Gas Use Tax Exemption Certificate