Illinois – New Application Process for Obtaining an Exemption Certificate for Building Materials

SALT Report 2588 – The Illinois Department of Revenue issued an information bulletin regarding changes to the application process for obtaining a sales tax exemption certificate for building materials. Beginning July 1, 2013 contractors and other entities involved in real estate construction, rehabilitation, or renovation projects in an Enterprise Zone, a Rivers Edge Redevelopment Zone, or a state-certified High Impact Business, can purchase building materials for the project exempt from sales tax. The exemption is only available to contractors or other entities that have an exemption certificate issued by the Department.

Application Process

  • Construction contractors and entities seeking exemption certificates must go through either the Zone Administrator of the zone in which the project is located or through the High Impact Business project manager.
  • Zone Administrators will submit an application for the construction contractor or entity purchasing the materials to incorporate into real estate in an Enterprise Zone or Rivers Edge Redevelopment Zone.
  • High Impact Businesses must submit an application for construction contractors or entities that will purchase materials to be incorporated into a High Impact Business location.
  • All applications must be submitted through the “Business Incentives Reporting and Building Materials Exemption Certification” link.
  • If qualified, the Department of Revenue will issue an exemption certificate within 72 hours of receiving an application.

The bulletin also states that any unexpired exemption certificates that were issued by a Zone Administrator prior to July 1, 2013, will not be valid after that date; and the bearer must reapply for a new certificate for the specific project.

For Further Information

Illinois Department of Revenue – Informational Bulletin FY 2013-16

Business Incentives FAQ’s