Illinois – Enterprise Zone and Pollution Control Facilities Sales Tax Exemption Rules Amended

SALT Report 2372 – The Illinois Department of Commerce and Economic Opportunity adopted emergency amendments to rules that determine eligibility for the enterprise zone machinery/equipment sales tax exemption and the pollution control facilities sales tax exemption. The exemptions apply to purchases of tangible personal property, repair and replacement parts and other items used in an enterprise zone or a high impact business location. The amended language follows.

Section 520.1000

The definition of “full-time equivalent job” has been amended to mean a job in which the new employee works at least 35 hours per week. A recipient who employs labor or services at a specific site or facility under contract with another may declare one full-time, permanent job for every 1,820 man hours worked per year under that contract. Vacations, paid holidays, and sick time are included in this computation. Overtime is not considered a part of regular hours.

The definition of “full-time retained job” means any employee defined as having a full-time or full-time equivalent job at a specific facility or site, the continuance of which is threatened by a specific and demonstrable threat, which shall be specified in the application for development assistance. A recipient who employs labor or services at a specific site or facility under contract with another may declare one retained employee per year for every 1,750 man hours worked per year under that contract, even if different individuals perform on-site labor or services.

The definition for “full-time employee” has been removed.

Section 520.1010 Eligibility Criteria

The provision related to “job retention” for high impact business minimum eligibility investments has been removed.

The amendments to the rules went into effect on March 28, 2013.

For Further Information

Department of Commerce and Economic Opportunity – 14 Ill. Administrative Codes section 520.1000 and section 520.1010