Enterprise Zones
Illinois Enterprise Zones offer state and local tax incentives to stimulate economic growth in economically depressed areas, including sales tax exemptions on building materials, utility tax exemptions, and investment tax credits.
Check an Address — Free Snapshot
Compare the geocoded point for a Chicago address with the boundary used to screen Enterprise Zones. A match is a location signal; review the current program source for the boundary's role and remaining criteria.
Published criteria — confirm with City of Chicago Department of Planning and Development
- Business must be within an Enterprise Zone boundary
- Must make qualifying investment in machinery, equipment, or building materials
Enterprise Zones is screened against the Enterprise Zone boundary. A geocoded point that intersects that boundary is a location signal, not a determination — review the current program source for the boundary's role and any remaining criteria. A single address can fall inside several overlapping incentive boundaries at once.
Boundaries are precise and change over time, so whether a specific address falls inside a mapped zone always depends on that exact address. The fastest way to check is to run a free snapshot for the parcel you have in mind — mapped coverage is a location signal, not an eligibility determination.
Range on file · Up to 9.25% sales tax exemption + 0.5% investment credit + utility exemptions
Current published terms as of 2026-08-09
- +Up to 9.25% sales tax exemption on building materials (state + local combined)
- +0.5% state investment tax credit
- +Utility tax exemption (telecom, natural gas, electric)
- +Potential property tax abatement
- 1Confirm your business is within an Enterprise Zone
- 2Apply to the local Enterprise Zone Administrator
- 3Submit investment plan and job creation projections
- 4Receive certification for tax benefits; obtain BMEC for sales tax exemption on materials
Email ezadministrator@cityofchicago.org to confirm Enterprise Zone status
- Enterprise Zone application
- Business plan with investment details
- Job creation/retention projections
- Proof of location within the zone
This page is a starting point, not eligibility, legal, or tax advice. Verify current requirements, deadlines, and boundaries with the administering agency before applying or spending money — program rules and funding change over time.
- Building Materials Exemption Certificate (BMEC) — Illinois Department of Revenue
Required to claim sales tax exemption on building materials.
- IDOR Business Incentives Reporting — Illinois Department of Revenue
Annual reporting required for businesses receiving Enterprise Zone benefits.
- Phone
- (312) 744-4190
- Phone
- (217) 524-0615
- Albert@illinois.gov
- Web
- Visit site ↗
Last verified 2026-08-09
Federal Opportunity Zone incentive: investors who reinvest capital gains through a Qualified Opportunity Fund into a designated zone receive tax reductions scaled to how long the investment is held. Illinois' current zones remain active for investment; a new round of IL-nominated zones takes effect January 1, 2027 under OZ 2.0.
The Economic Development for a Growing Economy (EDGE) program provides Illinois income tax credits against state withholding for businesses that create or retain jobs. Amended by HB2755 / P.A. 104-0006 (June 2025) to expand withholding-credit elections and require 10-day public posting of EDGE agreement terms.
REV Illinois (Reimagining Electric Vehicles in Illinois) provides project-by-project tax credits for businesses in the electric vehicle and renewable energy supply chain. Negotiated with DCEO across four investment/job tiers.
MICRO (Manufacturing Illinois Chips for Real Opportunity) supports semiconductor and microchip-related businesses with income tax credits, training, and infrastructure support. Codified at 35 ILCS 45.