Illinois Enterprise Zone Changes 2022

Attention Enterprise Zone Administrators,

Please take note of the following changes to take effect on January 1st, 2022. This content is presented
for informational purposes only. Enterprise zone administrators are advised to consult with their
individual legal counsel for interpretations of these changes to the Act.

Financial Incentives for Companies in Illinois.

P.A. 102-0108 clarifies that the Illinois Enterprise Zone Act authorizes a total of 97 enterprise zones to
be in existence at any given time under the Act, other than those authorized under another Act. After
2021, at any time when at least 4 enterprise zones are available for designation, at least 25% must be
awarded to zones in counties with populations under 300,000. For those zones set to expire after 2024,
the application process begins five years prior to expiration. Expiring zones may reapply, but other areas
may compete for the designation.

The amendment also implements new reporting requirements for zone administrators and provides for
provisional decertification for zones that for three consecutive years fail to file reports on capital
investment, job creation or retention, or state tax expenditures. After the Department of Commerce and Economic Opportunity (DCEO) notifies the chief elected official of the county or municipality that it is not compliant, DCEO will place the county or municipality on probationary status for at least 6 months.

If corrective action is not achieved during the probationary period, DCEO will decertify the zone. Enterprise zones will also face increased compliance requirements for ensuring that businesses receiving benefits file reports to the Department of Revenue.

More specific Illinois enterprise zone changes from PA 102-010 include:

#1

Allows DCEO to consider Eliminates the Assessed Valuation in full (Criterion #10)

#7

Allows DCEO to consider written comments submitted on an application after the submission deadline but before the Board hearing

#2

Eliminates the Free Lunch Program criteria and added 35% of families with children under 130% poverty (Criterion 3)

#8

Adds language that the 10 years extension is based upon how well the enterprise zone has implemented goals in the original application, including the investment and job creation and retention goals

#3

Adds to the Tax Base (Criterion #7) a requirement to include a plan for disposal of publicly owned property

#9

Clarifies the total number of zones is 97; No municipality can have more than 3, no county can have more than 18, if any round has more than 4 available 25% must be awarded in counties with less than 300,000 in population unless no applications under this level are submitted

#4

DCEO may award partial points in the Investment and Job Creation (Criterion #2) on pro-rata basis

#10

For zones that expire after Jan 1, 2024, a new or renewal application can be submitted 5 years prior to expiration

#5

DCEO may provide Provisional Certification of an enterprise zone that submits a substantially complete applications

#11

DCEO can provisionally decertify an enterprise zone that fails to file a report of capital investments, job creation or retention, and state tax expenditures for three consecutive years; Requires official notification, a 6-month cure period, and a public hearing, If no cure, then DCEO can decertify the zone. If provisionally decertified and awarded post-2021 and in existence for less than 15 years the enterprise zone is ineligible for the 10-year extension; If provisionally decertified, beneficiary companies still, get benefits through terms of the enterprise zone

#6

Requires DCEO to provide a breakdown of points awarded per criterion

#12

Sets a requirement that if 80% of businesses in an enterprise zone that receives benefits fail to file required reports to the Department of Revenue, the Department, at its discretion, can suspend the company’s benefits instead of decertifying the enterprise zone

As these changes take effect in 2022. Please consult with your counsel for further interpretations.

WIEDA offers Enterprise Zone benefits such as; Sales Tax Exemption on Building Materials, InvestmentTax Credit, Natural Gas Tax Exemption, Utility Tax Exemption, and
Consumables Sales Tax Exemption.

The WIEDA Enterprise Zone benefits are available to businesses that apply and reside in the counties of Adams, Brown, Cass, Fulton, Hancock, Henderson, Mason, McDonough, Morgan, Pike, Schuyler, Scott and Warren.

Lower Capital Costs

The Enterprise Zone Program helps communities in the region by providing incentives for businesses to invest within the Zone. This program is designed to provide state tax credits and exemptions for businesses to lower their overall capital costs.

Flexible Financing

We provide flexible terms and competitive rates that give issuers access to hundreds of millions of dollars in tax-exempt bonds at a low cost. With our quick application process and minimal document handling fees, companies can access the capital they need when they need it.

Contact us today to learn more about how your project can qualify for WIEDA financing and incentives!

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