About this programme
The Illinois Enterprise Zone Program is a set of state and local tax incentives, regulatory relief and improved government services aimed at economically depressed areas of the state. The Illinois Department of Commerce and Economic Opportunity (DCEO) runs the statewide program, and each individual zone has its own designated local zone administrator responsible for compliance.
The goal is to stimulate economic growth and neighborhood revitalization by making it cheaper and easier for businesses to locate or expand inside a designated zone. Benefits combine state tax exemptions with local incentives that vary by zone.
How it works
Businesses located in, or investing in, a certified enterprise zone can get a retailers' occupation tax exemption on building materials, expanded sales tax exemptions on manufacturing equipment and pollution control facility purchases, a utility tax exemption on electricity and natural gas, and exemptions from the Illinois Commerce Commission administrative charge and telecommunications excise tax.
The program also offers Enterprise Zone Construction Jobs Credits, which businesses can deduct from taxable income.
Each zone can layer on its own local incentives on top of the state benefits, so the total package differs from zone to zone.
Who can apply
The business must locate or expand within a designated Illinois Enterprise Zone.
It must make the minimum statutory investment and create or retain a specified number of jobs, thresholds that are set by that zone.
The business must be certified by DCEO to receive the state-level benefits.
How to apply
- Contact the local zone administrator for the enterprise zone where the business is located or will invest.
- Request a Certificate of Eligibility for Sales Tax Exemption from the local administrator.
- Submit an application to DCEO for business certification.
- Comply with the local zone's specific requirements and any annual fee schedule.
Frequently asked
Who administers an individual enterprise zone?
Each zone has its own designated local zone administrator, who handles compliance and issues the Certificate of Eligibility for Sales Tax Exemption. DCEO administers the program at the state level and certifies businesses.
What kind of tax breaks does the program offer?
State-level benefits include exemptions from retailers' occupation tax on building materials, sales tax on manufacturing equipment and pollution control facilities, utility tax on electricity and natural gas, and telecommunications excise tax, plus Enterprise Zone Construction Jobs Credits.
Do all zones offer the same incentives?
No. The state tax exemptions apply across all designated zones, but each zone can add its own local incentives, so the full package depends on which zone the business is in.
How do I find out if my business location is in a zone?
DCEO publishes an interactive Illinois Enterprise Zone Map and an Enterprise Zone Listing document that identify the designated zones and their administrators.
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Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.