Cal Sag Enterprise Zone

The Cal-Sag Enterprise Zone, one of over 93 Enterprise Zones in the State of Illinois, was established in 1983 to stimulate new development and expansion in the zone, thereby creating employment in the region. New construction and expansion of commercial and industrial projects located in the zone may qualify for significant real estate, sales tax and construction cost savings.

The entire City of Blue Island is located within the boundaries of the Cal-Sag Enterprise Zone.

Zone Benefits:

Eligible Commercial/Industrial projects qualify for the following benefits:

• 50% Abatement of City portion of Real Estate Taxes for 5 Years.
• 50% Reduction in Building Permit or Zoning Application Fees.
• Sales Tax Abated on Building Materials for Zone Projects – with Valid Certificate of Eligibility/Exemption.

For Additional Information:

Contact the Cal-Sag Enterprise Zone at (708) 653-3122 or visit calsagezone.org online.

To Apply:

1. Contact the Cal-Sag Enterprise Zone Administrator at (708) 653-3122.
2. Download a Cal Sag Enterprise Zone Application Form
3. Enterprise Zone Administrator will issue Certificate of Sales Tax Eligibility/Exemption and notify the IL Dept of Commerce & Economic Opportunity (IDCEO) and the Cook County Assessor’s Office of all incentives due.
4. Enterprise Zone Administrator will also notify the Building & Zoning Department of the project AFTER all paperwork has been submitted. This notification will serve as confirmation that a complete application has been filed and that the project is eligible for all local incentives.

IMPORTANT:

Application and accompanying fee must be completed and submitted to the Cal Sag Enterprise Zone Administrator PRIOR to the START of construction to receive full incentives.

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STATE INCENTIVES – ILLINOIS

Sales Tax Exemption
A 6.25% state sales tax exemption is permitted on building materials to be used in an Enterprise Zone. Materials must be permanently affixed to the property. This incentive is implemented by the issuance of a sales tax certificate of exemption thru the Zone office.

Enterprise Zone Machinery and Equipment Consumables/Pollution Control Facilities Sales Tax Exemption
A 6.25% state sales tax exemption on purchases of tangible personal property to be used in the manufacturing or assembly process or in the operation of a pollution control facility within an Enterprise Zone is available. Eligibility is based on a business making an investment in an Enterprise Zone of at least $5 million in qualified property that creates a minimum of 200 full-time-equivalent jobs, a business investing at least $40 million in a zone and retaining at least 2,000 jobs, or a business investing at least $40 million in a zone which causes the retention of at least 90% of the jobs existing on the date it is certified to receive the exemption.

Enterprise Zone Utility Tax Exemption
A state utility tax exemption on gas, electricity and the Illinois Commerce Commission’s administrative charge and telecommunication excise tax is available to businesses located in Enterprise Zones. Eligible businesses must make an investment of at least $5 million in qualified property that creates a minimum of 200 full-time-equivalent jobs in Illinois, an investment of $20 million that retains at least 1,000 full-time-equivalent jobs, or an investment of $175 million that creates 150 full-time-equivalent jobs in Illinois. The majority of the jobs created must be located in the Enterprise Zone where the investment occurs.

Enterprise Zone Investment Tax Credit
Astate investment tax credit of 0.5% is allowed a taxpayer who invests in qualified property in a Zone. Qualified property includes machinery, equipment and buildings. The credit may be carried forward for up to 5 years. This credit is in addition to the regular 0.5% investment tax credit, which is available throughout the state, and up to 0.5% credit for increased employment over the previous year.

Contribution Deduction
Businesses may deduct double the value of a cash or in-kind contribution to an approved project of a designated Zone organization from taxable income.

Gas Use Tax Exemption
Effective for bills issued on or after October 1, 2003, Gas Use Tax is imposed on the purchase of natural gas from outside of Illinois for use or consumption in Illinois. Businesses located in the Cal Sag Enterprise Zone will be exempt from this tax. Contact the Zone Administrator at (708) 653-3122 for more information on the Gas tax exemption Informational Bulletin and Form RG-61.