Bureau/Putnam Enterprise Zone
On July 1, 1987, the Governor designated a ten (10) square mile area in Bureau and Putnam counties as an Enterprise Zone. The Bureau/Putnam Area Enterprise Zone was initially set to expire in 2007, however, the City of Princeton has received state approval to extend the Zone until 2017. Depending on the project, the Enterprise Zone can be expanded to include a site not within the current Zone.
The following are some of the key benefits of the Bureau/Putnam Area Enterprise Zone:
- Property Tax Abatement - A nearly 100% abatement for 10 years on industrial/commercial real property improvements for new construction as well as renovation and rehabilitation requiring a building permit.
- Sales Tax Exemption - a local sales tax deduction of 1.75% and a state sales tax deduction of 5.00% on building materials used for real property construction, rehabilitation, and renovation within the Zone.
- Investment Tax Credit - a state investment income tax credit of 0.5% is allowed for qualified property in a Zone. Qualified property includes machinery, equipment and buildings. This credit may be carried up to 5 years.
- Job Tax Credit - This allows a business a $500 credit on Illinois income taxes for each job created in the Zone for which a certified dislocated or economically disadvantaged individual is hired. The credit may be carried forward for up to 5 years. A minimum of 5 eligible employees must be hired to qualify for the credit.
- Utility Tax Exemption - a state utility tax exemption on gas, electricity and the Illinois Commerce Commission (ICC) administrative charge located in the Zone. Eligibility is contingent upon the business making a $5 million investment which causes the creation of 200 full-time equivalent jobs or a $20 million investment for the retention of 1,000 full-time jobs in Illinois. A business must make application to and be certified by DCEO for the state utility exemption. The exemption will be granted for a period of 5 years at 100% of state taxes on gas, electricity, and the ICC administrative charge.
- Tax Exemption Enterprise Zone Machinery and Equipment/Pollution Control Facilities Sales - a 6.25% sales tax exemption is available on purchases of tangible personal property to be used or consumed in the manufacturing or assembly process or in the operation of a pollution control facility. Eligibility is contingent upon business making a $5 million investment causing the creation of 200 full-time equivalent jobs in an Illinois Enterprise Zone, or a $40 million investment causing the retention of 2,000 full-time equivalent jobs in an Illinois enterprise zone or an investment of $40 million causing the retention of 90% of the existing jobs. Application must be made through DCCA documenting investment and that the criteria of job creation or retention have been met.
For more information contact:
Pete Nelson, Building and Zoning
City of Princeton
2 South Main Street
Princeton, IL 61356
Phone: (815) 875-2631