Enterprise Zone

The Illinois Enterprise Zone Act took effect in 1983.

An Enterprise Zone is a specific area designated by the State of Illinois, in cooperation with a local government, to receive various tax incentives and other benefits to stimulate economic activity and neighborhood revitalization.

Enterprise Zones are administered at the State level by the Illinois Department of Commerce and Community Affairs. In Washington it is administered by the Community Preservation and Development office.

The Northern Tazewell County Enterprise Zone encompasses over 2.5 square miles and was certified on January 1, 2016. The Zone has placed an emphasis on commercial retention and expansion as well as industrial development.

An Enterprise Zone is a specially designated area in which tax incentives and direct financial assistance can be provided to firms locating or expanding in the Zone. The purpose of the Zone is to encourage economic development and to increase employment opportunities.

The following is a summary of the most often asked questions on incentives offered through the Illinois Enterprise Zone Program in general and the Northern Tazewell County Enterprise Zone Program in particular.

Northern Tazewell County Enterprise Zone...providing opportunities for local business expansion and development.
-- Zone benefits now available through 2030 --

Benefit Summary

Local incentives:

  • Sales Tax Deduction (100%) on building material and equipment purchases associated with a building improvement project.
  • Property Tax Abatement: A 5-year property tax abatement that takes effect upon the completion and closeout of the project and when the first year the property is 100% assessed.  This covers five full years and starts in the year when the project is fully assessed.  This applies to the increase in the assessed value attributable to the new construction, renovation, or rehabilitation.  Please note that a partial assessment may be applied if a portion of the project is completed based on the applicable rates for that portion of the structure at the time of the assessment.
  • Building Permit Fee Reduction (50%) on filing and value fees.
  • Utility Connection Fee Reduction (50%) for new water and sewer service connections.

State incentives:

  • Investment Tax Credit (0.5%) against State income tax for the value of investments in qualified property.
  • Income Tax Deductions – dividend subtraction and interest deductions.
  • Industrial Revenue Bond financing option.
  • Participation Loan financing option.

Project eligibility standards:

  • Property MUST be located within the Enterprise Zone.
  • MUST be Commercial or Industrial project.
  • Project MUST be remodeling, rehabilitation, or new construction of the nature and scope for which a building permit is required and obtained.

For more information regarding EZ benefits contact:

Jon Oliphant at 309-444-1135 

Email - joliphant@ci.washington.il.us

Fax - 309-444-9779