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Enterprise Zone and River Edge Redevelopment Zone
If you are in the Peoria Urban Enterprise Zone or the River Edge Redevelopment Zone you can save on the cost of your construction project through several ways:
- A sales tax exemption certificate for use at the time of purchase of building materials within the state of Illinois (a savings of approximately 9%)
- If you have completed a project that has raised your property’s assessed value and the property is not in a Tax Increment Financing (TIF) District, you may be eligible for a 100% tax abatement attributable to the project for three years, and a 50% tax abatement for the following two years.
a. Property tax abatement applies only to the increase in assessed value attributable to the new construction, renovation, or rehabilitation.
b. Property taxes based on the assessed value of land and existing improvements continue to be extended and collected.
c. Participating taxing districts in the Peoria Urban Enterprise Zone Abatement Program include: City of Peoria, County of Peoria, ICC #514, Peoria Library, Peoria Township, Airport Authority, & GP Mass Transit. - The State of Illinois offers additional incentives which can be found on their website at:
a. Peoria Urban Enterprise Zone: https://dceo.illinois.gov/expandrelocate/incentives/taxassistance/enterprisezone.html
b. River Edge Redevelopment Zone: https://dceo.illinois.gov/expandrelocate/incentives/taxassistance/riversedge.html State of Illinois and Federal Government Historic Tax Credits Program assists with up to 45% of Qualified Rehabilitation Expenditures
a. State of Illinois RE-HTC Program (25% of Qualified Rehabilitation Expenditures): https://dnrhistoric.illinois.gov/preserve/ihpa-tpc.html
b. Federal Government HTC Program (20% of Qualified Rehabilitation Expenditures): https://www.nps.gov/subjects/taxincentives/index.htm
Peoria Urban Enterprise Zone (PUEZ)
This zone is located throughout many areas in the City of Peoria. The Enterprise Zone requires an application fee equal to 0.5% of the estimated building materials cost.
River Edge Redevelopment Zone (RERZ)
This zone is in select parcels within 1,500 yards of the Illinois River in the Warehouse District and Peoria's Downtown.
The Peoria Urban Enterprise Zone and River Edge Redevelopment Zone are within specifically designated areas of the City. To determine if you are within one of these zones, follow the link below and select the search icon (the magnifying glass in the top right) and type in the project address. The yellow zone is the River Edge Redevelopment Zone and the green zone is the Peoria Urban Enterprise Zone.
After you have determined which incentive zone you are in, select the appropriate application below and complete the next steps. Ensure you have the information in the bullet list ready at the time of application.
Peoria Urban Enterprise Zone
| River Edge Redevelopment Zone
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*Peoria Urban Enterprise Zone Application Fee - The fee is calculated by 0.5% of the total estimated cost of building materials (maximum fee of $50,000). For example: $50,000 of estimated building materials would result in a $250 fee. Checks can be made payable to "City of Peoria" with "EZ Application Fee" in the memo line at the City Hall in the Treasurer's Office (419 Fulton Street).
The contractors/subcontractors will receive a link at the email address they provided in their application from the Illinois Department of Revenue for the Building Materials Tax Exemption Certificate for the project. The certificate is now ready to be printed and used at the point of sale for building materials.
The project owner and subcontractors will receive an email from the Illinois Department of Revenue with a request to file an annual report. Failure to complete the annual report may result in inability to receive future tax exempt certificates.
State reporting requirements can be found here: https://tax.illinois.gov/businesses/incentives.html