Enterprise Zones

Businesses that make investments within the Rock Island Enterprise Zone are eligible for state and local tax incentives. For a map of the Enterprise Zone click here. To confirm that your business or development property is in the zone, please call the City of Rock Island Community and Economic Development Department at 309.732.2920.

Investment Tax Credit

Individuals and corporations are allowed a 0.5% tax credit against Illinois income tax for investments in qualified property placed in service in the Rock Island Enterprise Zone. This credit is in addition to the state's regular investment tax credit.

Sales Tax Deduction on Building Materials

Enterprise Zone businesses or contractors may purchase building materials sales tax exempt from eligible retailers. An approved certificate of sales tax exemption is required.

Eligible materials include:

lumber, sheet rock, concrete block, nails, screws, windows, doors,
furnaces, ductwork plumbing, electrical systems, central air conditioners,
carpet, paint, landscaping, and all other materials which are "permanently affixed to the property"

Jobs Tax Credit

Employers in Enterprise Zones receive an income tax credit for hiring "eligible" employees within an Enterprise Zone. The credit is equal to $500 per eligible employee.

Interest Subtraction

Banks are allowed a subtraction from Illinois base income for interest received from loans that are secured with property located within an Enterprise Zone. Institutions who are eligible for the subtraction may be willing to offer a slightly lower interest rate to the Enterprise Zone customer.

Enterprise Zone Loan Program

The Illinois Department of Commerce and Economic Opportunity (DCEO), in cooperation with financial institutions, offers below market rate loans for businesses located in Illinois Enterprise Zones.

For details on Enterprise Zone programs click here, call the City of Rock Island Community and Economic Development Division at 309.732.2920, or email cedmail@rigov.org.