Sales Tax Exemption for Wind Energy Business Designated High Impact Business (Illinois)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Sales Tax Exemption for Wind Energy Business Designated High Impact Business|
|Incentive Type||Sales Tax Incentive|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||100% exemption of Retailers' Occupation Tax for building materials incorporated into the facility|
|Equipment Requirements|| Wind facility must have a nameplate capacity of at least 0.5 MW|
Building materials must be physically incorporated into the building in order to qualify for exemption
|Program Administrator||Illinois Department of Commerce and Economic Opportunity|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
A business establishing a new wind power facility in Illinois that will not be located in an Enterprise Zone* may be eligible for designation as a "High Impact Business." After receiving the designation, the facility is entitled to a full exemption of the state sales tax (6.25%) and any additional local state sales taxes for building materials incorporated into the facility. The project must involve a minimum of a $12 million investment creating 500 full-time jobs or an investment of $30 million causing the retention of 1,500 full-time jobs.
A wind power facility must be new (or an expansion of an existing facility) and placed in service on or after July 1, 2009. It must generate electricity using wind turbines 500 kW or greater. The associated transmission lines, substations and related equipment are included in the definition of a wind power facility.
A wind power facility must apply to the Department of Commerce and Economic Opportunity (DCEO) for designation as Wind Energy Business within the High Impact Business Program. Applications are accepted throughout the year; once an application is received, DCEO will respond within 30 days. Required application information is available in the administrative code (14 Ill. Adm. Code, Part 520.603). Once designation is granted, the business will be eligible for the sales tax benefits. As a condition of designation (and to receive the tax benefits), a Wind Energy Business will be required to comply with the Prevailing Wage Act for construction labor.
*Locating within an Enterprise Zone offers businesses a different package of incentives and makes them ineligible for designation as a High Impact Business.
|Contact Name||Information - High Impact Business|
|Department||Illinois Department of Commerce and Economic Opportunity|
|Division||Bureau of Business Development|
|Address||620 East Adams Street|
|Phone 2||(800) 785-6055|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||§ 20 ILCS 655/5.5|
|Authority 2:||14 Ill. Adm. Code, Part 520|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.