Sales Tax Exemption for Wind Energy Business Designated High Impact Business (Illinois)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Illinois

Name Sales Tax Exemption for Wind Energy Business Designated High Impact Business
Incentive Type Sales Tax Incentive
Applicable Sector Commercial
Eligible Technologies Wind
Active Incentive Yes

Implementing Sector State/Territory
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

Start Date 2009-07-01


















Program Administrator Illinois Department of Commerce and Economic Opportunity
Website http://www.illinois.gov/dceo/ExpandRelocate/Incentives/taxassistance/Pages/HIB.aspx
Date added to DSIRE 2009-07-16
Last DSIRE Review 2014-10-31



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

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.


Incentive Contact

Contact Name Information - High Impact Business
Department Illinois Department of Commerce and Economic Opportunity
Division Bureau of Business Development
Address 620 East Adams Street

Place Springfield, Illinois
Zip/Postal Code 62701
Phone (217) 785-6145
Phone 2 (800) 785-6055


Website http://www.commerce.state.il.us/dceo
     
     

Authorities (Please contact the if there are any file problems.)

Authority 1: § 20 ILCS 655/5.5
Date Effective 2009-07-01
Date Enacted 2009-06-30


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.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"