The River Edge Redevelopment Zone (RERZ) Program is designed to achieve its goals through the use of several incentives authorized by State law. Two of these – sales tax exemption and property tax abatement (if offered in the zone) – are administered by the local zone administrators. The others involve tax incentives that may be claimed on your Illinois Income Tax filing.
Cover Letter for Annual Report - 2007
Annual Report - 2007
Annual Report - 2008
Annual Report - 2009
Program Evaluation Report – 12/31/09
Investment Tax Credits: Allow RERZ businesses to claim an additional 0.5% credit on their Illinois Personal Property Tax Replacement Tax for the cost of qualified depreciable property placed in service in the zone. The Illinois Income Tax Act allows an additional credit equal to 0.5% of the basis of qualified property placed in service during the taxable year in a River Edge Redevelopment Zone, provided such property is placed in service on or after July 1, 2006, and the taxpayer's base employment within Illinois has increased by 1% or more over the preceding year as determined by the taxpayer's employment records filed with the Illinois Department of Employment Security. Taxpayers who are new to Illinois shall be deemed to have met the 1% growth in base employment for the first year in which they file employment records with the Illinois Department of Employment Security.
Jobs Tax Credit: Allows a business a $500 credit on its Illinois State Income tax for each job it creates in the RERZ for which a dislocated worker is hired. The person hired must first be certified by a Local Work Investment agency. http://www.illinoisbiz.biz/dceo/Bureaus/Workforce_Development/WARN/WARN_LWIA+
regions.htm To qualify for the credit 5 such workers must be hired and all 5 must be employed for at least 180 consecutive days for 30 hours a week in the business’ taxable year.
Environmental Remediation Tax Credit: Allows for a credit against State Income Taxes for some non-reimbursed eligible costs for remediation work done on an RERZ site resulting in a “No Further Remediation Letter” being issued. This requires a joint review by DCEO and the Illinois Environmental Protection Agency (IEPA). The credit is 0.25 for each dollar spent for non-reimbursed remediation expenses. Contact the IEPA for further information.
Dividend Income Deduction: Allows individuals, corporations, trusts and estates to deduct an amount equal to dividends paid to them by a corporation that conducts substantially all of its operation in the RERZ from their taxable income.
Interest Income Deduction: Allows financial corporations to deduct an amount equal to the interest received for a loan for development in an RERZ from their corporate State Income tax. The loan must be secured by property located within an RERZ.
Building Materials Sales Tax Exemption: Allows for exemption of sales tax on construction materials for non-residential projects within the RERZ. Forms necessary to claim this “point-of-sales” exemption are available from the local administrator.
Property Tax Abatement: RERZs may offer property tax abatement within the zone. To determine if a property tax abatement may be available, contact the local zone administrator.
For general information about RERZs, contact:
Illinois Department of Commerce
& Economic Opportunity
Bureau of Business Development
500 East Monroe,
Springfield, Illinois 62701
For more information about the Environmental Remediation Tax Credit, contact the Illinois Environmental Protection Agency, Division of Remediation Management:
For information about the Rockford RERZ, contact:
Jovita Donahue, Development Specialist
City of Rockford Community Development Dept.
Economic Development Division
Phone: (815) 987-5632
Fax: (815) 967-6933
For information about the Aurora RERZ, contact:
Karen Zilly, AICP
City of Aurora
Neighborhood Redevelopment Division
1 South Broadway
Aurora, Illinois 60507
(630) 256 3323
For more information about the East St. Louis RERZ, contact:
Andrea Tolden Hughes, Program Manager
East St. Louis River Edge Zone
East St. Louis Municipal Building
301 River Park Drive
East St. Louis, IL 62201-3022
For more information about the Elgin RERZ, contact:
Richard G. Kozal
Assistant City Manager
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
For tax information on the Rivers Edge Program, click here.