Consumables Sales Tax Exemption
What is it?
Consumables Sales Tax
The Western Illinois Economic Development Authority (WIEDA) administers the WIEDA Enterprise Zone (WVEZ). The Illinois Enterprise Zone Program allows companies with large investments and jobs to be eligible for EXPANDED state tax exemptions as incentives to encourage businesses to make a new investment on property within the Zone. This stimulates business activity and creates new employment opportunities. Local units of government can opt to also provide local incentives in an Enterprise Zone.
Eligibility
Major Requirements Include:
Job Requirements
A business in an enterprise zone is eligible to receive an exemption of sales taxes on all tangible personal property used or consumed within an enterprise zone in the proves of manufacturing or assembly of tangible personal property for wholesale or retail sale or lease (EZ Machinery and Equipment/Pollution Control Sales Tax) if they:
→ Create 200 full-time-equivalent jobs and invest at least $5 million in qualified property
→ Retain 2,000 full-time-equivalent jobs and invest at least $40,000,000
→ Retain 90% of their existing jobs and invest at least $40,000,000
Investment Improvement
Eligible investment may be either: investments in qualified property as defined in the Enterprise Zone Investment Tax Credit; or, non-capital and non-routine investments and associated service costs made for the basic construction, renovation or improvement of qualified property including productive capacity, efficiency, product quality or competitive position. Regular maintenance and routine expenditures are not included.
Location Requirement
The WIEDA EZ can be expanded to add territory for a business project in the Illinois counties of Adams, Brown, Cass, Fulton, Hancock, Henderson, Mason, McDonough, Morgan, Pike, Schuyler, Scott and Warren
Benefits
If Approved:
Exemptions
Repair and replacement parts for machinery and equipment used primarily in the wholesale or retail sale or lease, equipment, manufacturing fuels, materials and supplies for the maintenance, repair or operation of manufacturing, or assembling machinery.
Long-Term Scope
Each certification is for a period of five years and can be renewed in five-year increments for up to thirty years.
Job Creation
The program allows created or retained contractor jobs that work 35 hors per week or 1,820 hours per year.
