The Loves Park-Machesney Park Enterprise Zone offers businesses and investors a variety of valuable tax credits to support development within the Enterprise Zone boundary.
BUILDING MATERIALS SALES TAX EXEMPTION
Any building materials used in new construction or rehabilitation of properties located within the Loves Park-Machesney Park Enterprise Zone (and permanently attached to the real estate) are eligible to be sales tax exempt.
PROPERTY TAX ABATEMENT
The City of Loves Park and the Village of Machesney Park effectively do not issue corporate property taxes, and accordingly, this incentive is available, without application, to all businesses with the Enterprise Zone. Please note that property tax abatement does not apply to any other taxing districts within either municipality.
INVESTMENT TAX CREDIT
A 0.5 percent credit against the state income tax is offered to taxpayers making investments in qualified property located in the Enterprise Zone. The Enterprise Zone credit is in addition to the existing 0.5 percent investment tax credit against the personal property replacement tax available throughout Illinois.
MANUFACTURING MACHINERY AND EQUIPMENT SALES TAX EXEMPTION
State statute allows a business enterprise that is certified by the Department of Commerce, that either creates a minimum of 200 full-time equivalent jobs in Illinois; or retains a minimum of 2,000 full-time jobs in Illinois; or which retains 90% of the existing jobs, a 6.25 percent state sales tax exemption on all tangible personal property which is used or consumed within an Enterprise Zone in the process of manufacturing or assembly of tangible personal property for wholesale or retail sale or lease. This exemption includes repair and replacement parts for machinery and equipment used primarily in the 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.
UTILITY TAX EXEMPTION
The Public Utilities Act 220 ILCS 5/9-222.1, as amended and the Telecommunications Excise Tax Act 35 ILCS 630/2(a)(5), as amended allows a 5 percent state tax exemption on gas, electricity; and the Illinois Commerce Commission .1 percent administrative charge and excise taxes on the act or privilege of originating or receiving telecommunications a business enterprise, for businesses that are certified by the Illinois Department of Commerce as making an investment in a zone that either creates a minimum of 200 full-time equivalent jobs in Illinois or retains a minimum of 1,000 full-time jobs in Illinois.
Please refer to the frequently asked questions page for additional details on qualifications for each of the abovementioned incentives.