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The Montgomery County Enterprise Zone Council met and approved to amend the Enterprise Zone Ordinance to implement the Administration fee according to 20 ILCS 655/8.2. The Admin Fee is 0.5% of the cost of building materials of the project associated with the specific Enterprise Zone, with a maximum fee of no more than $50,000. This Admin Fee pays for the administration of the EZ program and GIS mapping expenses. The EZ Admin Fee of 0.5% of the estimated Building Materials will be calculated and ONE HALF will be collected at the beginning of the project and the balance will be calculated at the end of the project when all the building material costs are totaled.
Exclusions - Retail/Service/Commercial Companies engaged in the following categories of business below shall be ineligible for any property tax abatement as provided herein:
Self-storage (mini warehouse facilities), Adult Entertainment Venues including Adult Bookstores, Auto Salvage and Junk Yards, Commercial Feed Lots, Hides-Skins and Raw Furs Processing, Landfills and Refuse Incinerators and Slaughter House, Meat Packing, Processing Plants and Stockyards.
To be completed by Project Representative
"Retained" means the number of jobs that will remain in the zone as a result of the new investment being made.
"Created" means the number of jobs for which persons are hired or are expected to be hired within two years as a result of the new investment, not including construction jobs or spin-offs that may be created.
This is to certify that the project listed below is within the Montgomery County Enterprise Zone and is eligible for Sales Tax Exemption on building materials purchases for the following period:
Each contractor and sub-contractor for a project must apply for a Sales Tax Exemption Certificate. This exemption applies only to materials purchased from eligible retailers.
Please see attached for qualifying materials. This certification should be retained and filed with invoices for tax exempt building materials purchased for this project.
Note: A contractor or builder who illegally uses this certification to obtain building materials for a project at a location other than the location listed above will forfeit all local enterprise zone benefits.
I hereby certify that the materials purchased with this certificate will be incorporated into the project address listed above and that I have obtained a building permit for this project.
Each sub-contractor for a project must apply for a Sales Tax Exemption Certificate.
Purchase of eligible building materials outside Illinois is allowed as long as the purchase is governed by the Illinois Retailers' Occupation Tax Act. For out-of-state purchases, this generally means that materials must be delivered to Illinois. For specific information about out-of-state purchases, please contact the local office of the Illinois Department of Revenue at 217-782-3336.
Under Illinois law, construction contractors are considered the end users of the tangible personal property that they take off the market and permanently affix to real estate. Contractors who also sell at retail cannot act as retailers to themselves (by removing stock from their inventory) and claim the enterprise zone exemption. To qualify for the exemption, they must instead purchase qualifying materials from eligible retailers or separately bid and invoice labor and materials sold at retail.
Qualifying materials under the exemption include those that will be incorporated into real estate located in an enterprise zone by remodeling, rehabilitation, or new construction.
For example, common building materials such as lumber, bricks, cement, windows, doors, insulation, roofing materials and sheet metal; plumbing systems and components such as bathtubs, lavatories, sinks, faucets, garbage disposals, water pumps, water heaters, water softeners and water pipes can qualify for the deduction;
Heating Systems: and components such as furnaces, ductwork, vents, stokers, boilers, heating pipes, and radiators;
Electrical Systems: and components such as wiring, outlets and light fixtures which are physically incorporated;
<Central Air Conditioning Systems, ventilation systems and components which are physically incorporated;
Built-in cabinets and other woodwork which are physically attached; floor coverings such as tile, linoleum and carpeting that are permanently affixed by use of tacks, staples, or glue;
Concrete (as long as labor and materials are separated);
Landscaping Materials (as long as labor and materials are separated);
Hard Wired Signs which are not portable; and in general, built-in appliances that are physically incorporated into real estate can qualify for the exemption.
Items which do not qualify: include tools machinery, equipment, fuel forms, free-standing appliances and furniture, portable ventilation units, window air-conditioning units, lamps, and area rugs.
If you have any questions please call the Illinois Department of Revenue Office: 217-782-3336.
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