Illinois Enterprise Zone Changes 2022
Attention Enterprise Zone Administrators, Please take note of the following changes to take effect on January 1st, 2022. This content is presented for informational purposes only. Enterprise zone administrators are advised to consult with their individual legal counsel for interpretations of these changes to the Act.
P.A. 102-0108 clarifies that the Illinois Enterprise Zone Act authorizes a total of 97 enterprise zones to be in existence at any given time under the Act, other than those authorized under another Act. After 2021, at any time when at least 4 enterprise zones are available for designation, at least 25% must be awarded to zones in counties with populations under 300,000. For those zones set to expire after 2024, the application process begins five years prior to expiration. Expiring zones may reapply, but other areas may compete for the designation.
The amendment also implements new reporting requirements for zone administrators and provides for provisional decertification for zones that for three consecutive years fail to file reports on capital investment, job creation or retention, or state tax expenditures. After the Department of Commerce and Economic Opportunity (DCEO) notifies the chief elected official of the county or municipality that it is not compliant, DCEO will place the county or municipality on probationary status for at least 6 months.
If corrective action is not achieved during the probationary period, DCEO will decertify the zone. Enterprise zones will also face increased compliance requirements for ensuring that businesses receiving benefits file reports to the Department of Revenue.
Specific Illinois Enterprise Zone Changes From
PA 102-010 Include:
1. Eliminates the Assessed Valuation in full (Criterion #10)
2. Eliminates the Free Lunch Program criteria and added 35% of families with Children under 130%
poverty (Criterion 3)
3. Adds to the Tax Base (Criterion #7) a requirement to include a plan for disposal of publicly owned
property
4. DCEO may award partial points in the Investment and Job Creation (Criterion #2) on pro rata basis
5. DCEO may provide Provisional Certification of an enterprise zone that submits a substantially
complete applications
6. Requires DCEO to provide a breakdown of points awarded per criterion
7. Allows DCEO to consider written comments submitted on an application after the submission
deadline but before the Board hearing
8. Adds language that the 10 years extension is based upon how well the enterprise zone has
implemented goals in original application, including the investment and job creation and retention goals
9. Clarifies the total number of zones is 97; No municipality can have more than 3, no county can have
more than 18, if any round has more than 4 available 25% must be awarded in counties with less than
300,000 in population unless no applications under this level are submitted
10. For zones that expire after Jan 1, 2024, a new or renewal application can be submitted 5 years prior
to expiration
11. DCEO can provisionally decertify an enterprise zone that fails to file a report of capital investments,
job creation or retention, and state tax expenditures for three consecutive years; Requires official
notification, a 6-month cure period and a public hearing, If no cure, then DCEO can take decertify the
zone. If provisionally decertified and awarded post 2021 and in existence for less than 15 years the
enterprise zone is ineligible for the 10-year extension; If provisionally decertified, beneficiary companies
still get benefits through term of enterprise zone
12. Sets a requirement that if 80% of businesses in enterprise zone that receive benefits fail to file
required reports to the Department of Revenue, the Department, at its discretion, can suspend the
company’s benefits instead or decertifying the enterprise zone
As these changes take effect in 2022. Please consult with your counsel for further interpretations.
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