The Enterprize Zone Continues to be a succesfull program for the City.
43 Businesses took advantage of EZ sales tax exemption in 2008.
The program helped create $45,280,826 of investment in the City, leading to the creation or retention of 829 jobs, according to reports filed by the 43 Businesses.
The Illinois Enterprise Zone Act took effect December 7, 1982. 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.
Both State and local incentives are available in an Enterprise Zone. Enterprise Zones are administered at the State level by the Illinois Department of Commerce and Economic Opportunity. In Peoria, it is administered by the City of Peoria Department of Economic Development.
Tax incentives and direct financial assistance can be provided to firms locating or expanding in the Zone. The Zone’s primary objective is to encourage economic development and to increase employment opportunities.
Depending on the type of development, possible incentives include:
· Loan Financing Programs > 2% below prime interest rate
· Property Tax Abatement
· Sales Tax Abatement on Building Materials (100% of the 8% sales tax is waived)
· Job Tax Credits ($500 per employee)
· Investment Tax Credit (0.5%)
· Utility Tax Credit
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