Consumables Sales Tax
The Southeastern Illinois Economic Development Authority (SIEDA) administers the SIEDA Enterprise Zone (SEEZ). The Illinois Enterprise Zone Program allows companies with large investments and jobs to be eligible for EXPANDED state tax exemptions as incentives to encourage businesses to make a new investment on property within the Zone. This stimulates business activity and creates new employment opportunities. Local units of government can opt to also provide local incentives in an Enterprise Zone.
Eligibility:
Job Requirements
A business in an enterprise zone is eligible to receive an exemption of sales taxes on all tangible personal property used or consumed within an enterprise zone in the proves of manufacturing or assembly of tangible personal property for wholesale or retail sale or lease (EZ Machinery and Equipment/Pollution Control Sales Tax) if they:
→ Create 200 full-time-equivalent jobs and invest at least $5 million in qualified property
→ Retain 2,000 full-time-equivalent jobs and invest at least $40,000,000
→ Retain 90% of their existing jobs and invest at least $40,000,000
Investment Improvement
Eligible investment may be either: investments in the qualified property as defined in the Enterprise Zone Investment Tax Credit; or, non-capital and non-routine investments and associated service costs made for the basic construction, renovation, or improvement of qualified property including productive capacity, efficiency, product quality or competitive position. Regular maintenance and routine expenditures are not included.
Location Requirement
The SIEDA EZ can be expanded to add territory for a business project in the Illinois counties of Clark, Clay, Crawford, Cumberland, Edwards, Effingham, Fayette, Hamilton, Jasper, Jefferson, Lawrence, Marion, Richland, Wabash, Washington County-Irvington Township, Wayne, and White.
Benefits
Exemptions
Repair and replacement parts for machinery and equipment used primarily in the wholesale or retail sale or lease, equipment, manufacturing fuels, materials, and supplies for the maintenance, repair, or operation of manufacturing, or assembling machinery.
Long-Term Scope
Each certification is for a period of five years and can be renewed in five-year increments for up to thirty years.
Job Creation
The program allows created or retained contractor jobs that work 35 hours per week or 1,820 hours per year.
