Enterprise Zone Program
An Enterprise Zone is a specific area designated by the State of Illinois, in cooperation with local government, to receive tax incentives and other benefits to stimulate economic activity, employment opportunities, and neighborhood revitalization. The Lincoln / Logan Enterprise Zone was originally certified in 1987 and is set to expire on June 30, 2017.
The Enterprise Zone Office is located four blocks south of the Courthouse in downtown Lincoln.
Office hours are:
Enterprise Zone benefits shall be extended to those projects involving manufacturing operations including the assembly, fabrication, repair, restoration or creation of products, commercial storage, warehousing, distribution, telemarketing, phone order centers, agribusiness, mining, offices, health care facilities, retail projects, commercial enterprises defined as businesses whose principle revenue comes from on-premise sale of food, beverages, gasoline, durable goods or merchandise of any kind or the offering of services.
The improvements or renovations are of the scope and nature for which a building permit has been obtained and has an estimated cost of at least $5,000.00.
Enterprise Zone Map
Countywide boundaries of the Enterprise Zone can be found on the Logan County GIS Internet Mapping application. To view the boundaries of the Enterprise Zone expand the Districts folder located under the Tax Districts layer and turn on the Enterprise Zone layer by clicking the box next to Enterprise Zone Boundary. To view a specific area more closely, use the "Zoom In" (magnifying glass with a + in the middle) to drag a box and zoom into a specific area. An alternative way to locate a specific parcel is to use the "Search by Parcel Number" tool, "right click" on the parcel found and then click "Zoom To" to zoom to the parcel.
As the majority of the Enterprise Zone is located in and around the City of Lincoln, a boundary map has also been provided that does not require navigating the Internet Mapping site.
BUILDING PERMIT FEE REDUCTION
Eligible projects will receive a fifty percent (50%) reduction in building permit fees. The improvements or renovations must be of the scope and nature for which a building permit has been obtained and has an estimated cost of at least $5,000.00. Application fees for zone changes, variances, conditional uses, or special uses are not waived.
PROPERTY TAX ABATEMENT
Abatements are offered for a total of ten (10) years* based on the following schedule:
The abatement applies only to taxes on the increase in assessed value attributable to the new construction, revitalization, or renovation. Taxes based on the assessed value of land and existing improvements continue to be extended and collected. Abatement of taxes on any parcel shall not exceed the amount attributable to the eligible improvements on the property.
The following taxing authorities offer tax abatements:
*The Lincoln / Logan Enterprise Zone is set to expire in 2017. The Authority to abate local property taxes is derived from the Zone. Unless the State of Illinois reauthorizes the Zone, the authority to abate local property taxes will also expire in 2017. Projects seeking local property tax abatement should be made aware that it is possible that the benefit of local property tax abatement may not be available for the full 10 year abatement schedule.
BUILDING MATERIALS SALES TAX EXEMPTION
An Application for Sales Tax Exemption must be submitted to the Zone Administrator along with a copy of
the building permit for the project. The Zone Administrator will submit the application to IDOR for review and issuance.
Each retailer who makes a sale of building materials to be incorporated into real estate located in the Enterprise Zone may deduct receipts from such sales when calculating the tax imposed by the State of Illinois. The deduction shall be limited to and shall only apply to any remodeling, rehabilitation, or new construction which the Illinois Department of Revenue has issued a Building Materials Exemption Certificate. A copy of the Certificate must be provided to the retailer at the time of sale. Additional information regarding the Certificate can be found in the IDOR Informational Bulletin FY 2013-16 or at the IDOR website.
Building materials that are eligible for the enterprise zone sales tax deduction include items that are permanently affixed to real property such as lumber, mortar, glued-down carpets, paint, wallpaper and similar affixed items. The deduction does not apply to materials purchased for routine maintenance, repair, or upkeep of the property.
For information on additional incentives please click on the "Link to Web Resource" included with each incentive which will take you to the Illinois Enterprise Zone Association website. The State offers the following tax incentives for investment in an Illinois Enterprise Zone:
Any business receiving tax incentives due to its location within an Enterprise Zone or its designation as a High impact Business must report the total Enterprise Zone or High Impact Business tax benefits received by the business, broken down by incentive category and enterprise zone, if applicable, annually to the Department of Revenue. Reports will be due no later than March 30 of each year and shall cover the previous calendar year. Failure to report data shall result in ineligibility to receive incentives. For the first offense, a business shall be given 60 days to comply.
Employers shall report their job creation, retention, and capital investment numbers within the zone annually to the Zone Administrator, which will compile the information and report it to the Department of Revenue no later than March 30 of each calendar year.