A qualifying High Impact Business may be eligible to receive the following: sales tax exemption on building materials, an investment tax credit, an exemption from state gas and electric tax, and a state sales tax exemption on personal property used or consumed in the manufacturing process or in the operation of a pollution control facility.
The Coal/Energy High Impact Business may qualify for sales tax exemption on building materials, an investment tax credit, an exemption from state gas tax on utilities and excise tax on electricity. A Wind Energy / High Impact Business only qualifies for the sales tax exemption on building materials.
It is important to apply and be certified for the HIB designation before commencement of the project, including purchase of building material. Here is a link to the Illinois Department of Revenue bulletin outlining the process for receiving the building material sales tax exemption:
A designated High Impact Business located in a foreign trade zone or sub-zone is eligible for additional incentives including an income tax credit for a minimum of five new eligible hires, an exemption from municipal tax on utilities, an exemption from the telecommunications excise tax, and an income tax deduction for financial institutions receiving interest from loans secured by property eligible for the High Impact Business Investment Tax Credit.
The department will review an application within 30 days of receipt. The department may request supplemental information needed to determine eligibility. If additional information is requested, the applicant will be allowed 30 days to submit it. The department will then accept or deny the application within 30 days. If the department denies the initial application, it will specify the reasons for denial in writing, and allow the applicant 30 days to amend and resubmit the application. Resubmitted applications will be approved or denied within 30 days of receipt.
If the application is approved, the department will notify the applicant in writing of designation as a High Impact Business, and transmit a copy of the designation to the Illinois Department of Revenue.
For further information please contact:
Illinois Department of Commerce
& Economic Opportunity
Bureau of Business Development
500 East Monroe,
Springfield, Illinois 62701