What is the Enterprise Zone?

An Enterprise Zone is a specific area designated by the State of Illinois to receive tax incentives and other benefits to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state. The Rock Island Enterprise Zone was originally certified in 1984.

How do I know if my property is in the Rock Island Enterprise Zone?

A detailed map of the Rock Island Enterprise Zone boundaries is available

here.

You may also contact the program administrator at (309) 732-2900 to verify the location.

What local incentives are available in the Rock Island Enterprise Zone?

Zone incentives are established by State legislation and by municipal ordinance (Chapter 11, Article IV. Enterprise Zone, Rock Island City Code). The following incentives are offered in the Rock Island Enterprise Zone:

Property Tax Abatement

Property tax abatements are permitted for non-residential projects that increase a property’s assessed valuation by $100,000 or more. The abatement applies only to the taxes corresponding to an increase in the assessed valuation attributable to the construction of improvements for which a building permit has been obtained. Projects within a Tax Increment Finance (TIF) district are not eligible for property tax abatements. Contact the program administrator to find out more about this incentive.

Sales Tax Exemption for Building Materials

A sales tax exemption is available for the purchase of building materials that will be permanently affixed to a property in the Enterprise Zone.

How do I apply for Sales Tax Exemption for Building Materials?

An application for a Building Materials Exemption Certificate must be submitted to the program administrator for approval. If the program administrator determines that the project meets the required criteria, the applicant will receive a “Certificate of Eligibility” and Illinois Department of Revenue form EZ-1.

Purchasing Building Materials

Only building materials purchased within the State of Illinois through a legitimate building materials retailer or distributor is subject to the sales tax exemption. The materials purchased must be permanently affixed to the real estate. To receive the sales tax exemption, the purchaser must present a valid "Certificate of Eligibility" and provide a completed EZ-1 form to the retailer.

Certificate Holder Reporting Requirements

Businesses who have received a Building Materials Exemption Certificate must annually report to the Illinois Department of Revenue. Reports are due no later than May 31 of each year and shall cover the previous calendar year. Failure to report data may result in ineligibility to receive incentives. For more information on reporting requirements, visit the FAQ pages on the Department of Revenue’s website.

Note: All businesses within the Rock Island Enterprise Zone are exempt from state use tax on natural gas.