Consumables Sales Tax Exemption Program

descriptions

The Quad Cities Regional Economic Development Authority (QCREDA) administers the QCREDA Enterprise Zone (QCREDA EZ). The 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 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 QCREDA EZ can be expanded to add territory for a business project in the Illinois counties of Carroll, Henry, Jo Davies, Knox, Lee, Mercer, Rock Island, Stephenson and Whiteside.

Benefits

Exemption Includes

This exemption includes: 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 hors per week or 1,820 hours per year.
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