Skip to main content
 
 
 
 
Taxpayer Answer Center

Quick Links

Information For

About IDOR

Businesses

Business Incentives Reporting FAQ’s

Recipients of Enterprise Zone Property Tax Abatement Letters

General Information

If you have additional inquiries, you may submit them through the email form at the bottom of this page. 

Why did I get a letter directing me to report the amount of my property tax abatement?

An Illinois statute, 20 ILCS 655/8.1, requires everyone receiving tax incentives because of their location in an Enterprise Zone to report the value of those incentives to the Department of Revenue (“Department”) annually. According to records received by the Department from the assessor’s office in your county, the property you own received a tax abatement because of its location in an Enterprise Zone.

Return to index

Why does the Department believe I have an obligation to file a report?

The Department requested from the assessor in the county in which your property is located the address and owner of each property receiving a property tax abatement because of its location in an Enterprise Zone. Your property was included in that list.

Return to index

I received a letter because I have a wind turbine on my property. I do not get a tax abatement for the turbine. The company that owns the turbine gets the abatement. What should I do?

If you live in Livingston County and have a wind turbine on your property, you received this letter in error. You are not required to report tax abatements attributable to the wind turbine on your property. The company that owns the turbines will report the tax incentives provided to wind turbines.

Return to index

How do I file a report?

You must file your report electronically.

  1. Go to the Department of Revenue website, tax.illinois.gov.
  2. Click on the link entitled “Business Incentives” in the left-hand column.
  3. Under “Business Incentive Reporting,” click on “Click Here to Begin Filing a Report.”
  4. On the page entitled “Report Type,” click on “Business Report.”
  5. If you represent a business that received property tax abatement, enter the Federal Employer Identification Number (FEIN) or Account ID, which is the Illinois Business Tax Number of the business. If you received the property tax abatement for residential property, enter your Social Security number.
  6. Under Business Type, click on Enterprise Zone.
  7. Click on the name of the Enterprise Zone in which the property is located.
  8. Follow the instructions for reporting the tax incentives you received and the other information requested in the report.

Return to index

All of the questions on this report are directed to businesses that receive tax incentives. I am not a business and the property location provided on the letter is residential. Do I still have to fill out the report?

Yes. The law requires the Department to calculate the total value of Enterprise Zone tax incentives. Most of these incentives go to businesses. But individuals who receive incentives also must report so that the Department can provide accurate and comprehensive data to the General Assembly.

Return to index

The letter I received includes an “abated equalized assessed value (EAV)” and an “abated tax rate.” What does this mean?

The abated EAV is the equalized assessed value of the property after it was reduced because of its location in an Enterprise Zone. The abated tax rate is the rate at which the property was taxed determined by combining the tax rates of all taxing jurisdictions in which the property is located.

Return to index

How did the Department determine the abated EAV and abated tax rate of the property?

The abated EAV and abated tax rates were provided to the Department by the assessor in the county in which your property is located. The information is from your 2013 tax bill, for which payment was due in 2014. These numbers may not correspond to any specific amount on the property tax bill because they reflect the combined EAV and tax rate of all the taxing jurisdictions in which your property is located. Different taxing jurisdictions may opt to abate different percentages of the improvements or some improvements and not others.

Return to index

Now that I know my abated EAV and abated tax rate, what am I supposed to do with these numbers?

On the reporting application, enter your abated EAV where the program asks for “Value of Equalized Assessed Value eligible for abatement.” Enter your abated tax rate where the program asks for “Tax Rate used to calculate abated taxes.”

Return to index

I entered my abated tax rate in the field provided for “tax rate used to calculate abated taxes,” but I got an error message. What should I do?

The tax rate must be entered on the report as a decimal rather than a percentage. For example, if your abated tax rate is 8.25, it must be entered on the report as .0825. You can convert a percentage into a decimal for the report by putting a “0” in front of the number and by moving the decimal to the left two spaces.

Return to index

Do I have to fill out all of the fields on the report?

No. You must complete the sections entitled “Business Information,” “Project Information,” and “Contact Information.” If you are not a business, you should put your name in the section entitled business name. You must also complete the section entitled “Property Tax Incentives” using the information provided to you in the letter you received from the Department.

You should complete the “income tax,” “utility tax” and “sales tax,” incentives sections only if you receive these incentives because of your location in an Enterprise Zone. For example, if you are exempt from paying tax on your electricity, gas service or telephone service because of your location in an Enterprise Zone, then you should complete the “utility tax incentives” section. If you pay tax on these services, you do not need to fill out the “Utility Tax Incentives” section.

You should complete the section entitled “Jobs created and Investment” only if you invested money in the location where you received the tax abatement or if you employed personnel at that location for at least 1750 hours during the calendar year.

Return to index

Who is Required to File a Report?

IDOR is accepting reports through the online filing system for tax incentives provided during calendar year 2014, only. If you wish to file a report for a year preceding 2014, or amend a report filed for an earlier year, you must contact IDOR using the email form at the bottom of this page.

The following summarizes reporting requirements for calendar year 2014 due in 2015, including who is required to file a report, and the types of reports required.

Building Materials Exemption Certificate (BMEC) report - If you obtained a sales tax exemption certificate issued by the Illinois Department of Revenue for the period on or after July 1, 2013, and that certificate was valid during calendar year 2014, you are required to file a report with the Illinois Department of Revenue (IDOR). You are required to report the dollar amount of exempt building materials that you purchased during calendar year 2014. Do not report the dollar amount of exempt purchases made in years preceding 2014, or purchases made in calendar year 2015. If you wish to file a report for a prior year, you must contact IDOR using the email form at the bottom of this page.

Administrator report - Enterprise Zone and River Edge Redevelopment Zone Administrators should not file reports. Public Act 98-0109 eliminated the administrator reporting requirement.

Business report - Businesses that received incentives in calendar year 2014 because they were located within either an Enterprise Zone or River Edge Redevelopment Zone, or because they were a High Impact Business, must file a business report with IDOR. Each business that received incentives in calendar year 2014 must provide the information IDOR requests. IDOR will determine the value of incentives for the business based on the information reported. Do not provide information on incentives received in years preceding calendar year 2014, or incentives received in calendar year 2015. If you wish to file a report for a prior year, you must contact IDOR using the email form at the bottom of this page.

Return to index

How do I report multiple projects in the same Enterprise Zone?

Enterprise Zone reporting allows for one report per identification number (business) per Enterprise Zone. If your business received incentives for multiple projects in the same zone in calendar year 2014, you will have to report the aggregate information of all projects in one report for the entire Enterprise Zone.

Return to index

How do I report projects in multiple Enterprise Zones?

If your business received incentives for multiple projects in different zones during calendar year 2014, you must file one report per Enterprise Zone. Remember, if your business received incentives for multiple projects in the same zone, you must report the aggregate information of all projects in one report for the entire Enterprise Zone.

Return to index

What if I have multiple businesses to report in these zones?

Enterprise reporting allows for one report per identification number (business) per zone. Each business should file one report per Enterprise Zone. If the same business operated in multiple zones, reports should be submitted per Enterprise Zone.

Return to index

I am a zone administrator. What do I have to report?

Zone administrators no longer are required to file reports. While zone administrators were required to file reports in 2013, Public Act 98-109, effective July 25, 2013, eliminated that filing requirement.

Return to index

Should current employees of a business be included in the “retained” field of the report?

Current employees are not automatically retained employees.  Rather, there must be some indication that the business was going to close or eliminate employees for the employees to be counted as retained.

Return to index

If a contractor receives building materials as a drop shipment into Illinois from an out-of-state supplier, should the incentive be included in this report?

If the contractor was exempt from paying Illinois use tax due to the project location in an Enterprise Zone, then the business should report this in the “sales tax exemption” section of the report.

Return to index

Our business receives multiple incentive types, some of which are not itemized in our records. For reporting purposes, can we estimate a percentage to allocate to each incentive type to determine a reasonable value?

The value of each incentive must be reported with the highest degree of accuracy. Please modify your procedures to monitor the itemized value of each exemption.

Return to index

Which year's income tax return do I use to complete my business report?

You should use the most recently completed tax year for which your business has filed a return.

Return to index

The property tax rate on my tax bill has 1 digit to the left of the decimal and five digits to the right. However, the report asks for 5 digits to the right only and none to the left. What is the correct way to report my property tax rate on this report?

If the tax rate on your property tax bill reads as 4.567, that number represents 4.567 percent(%). On the report it should be listed in a decimal format, which is .04567.

Return to index

Our business has projects that span several years. How should we report values of specific tax-exempt items for the calendar year?

You should report the amount spent on tax-exempt items during 2014.  For projects certified in prior years, and ongoing in 2015, you will report the amounts spent in 2015 on next year’s report.

Return to index

How should we account for salaried employees or contractors in our full-time equivalent numbers?

Work hours for all persons working at the project site, whether identified as employees, contractors or otherwise, should be included in your calculations and reporting for full-time equivalent jobs.

For jobs (current and prior years) – Your final calculation to full-time equivalents should equal the sum of all hours worked by all persons at the project site divided by 1,820 hours.

For retained jobs (current year) – Your final calculation to full-time equivalent retained jobs should equal the sum of all hours worked by all persons at the project site divided by 1,750 hours.

Return to index

If a developer/owner received incentives but is leasing or intends to lease the facility to a qualified business, who is responsible for reporting incentives, the developer or the qualified business?

The developer/owner that received the tax incentives and property tax abatement is responsible for filing the report.  The report should include job creation data for all persons working at the site, whether directly employed by the developer/owner receiving the incentives or employed by another party.

Return to index

If an Enterprise Zone Business hires a contractor, and the contractor purchases exempt building materials for the project, who should report the value of the materials, the business or the contractor?

Building materials purchased during calendar year 2014 must be reported by the holders of the Department of Revenue-issued Building Material Exemption Certificates on a separate BMEC report.

Return to index

Partnerships and S-Corporations pass credits received to members using Schedule K-1-P. How should those credits be reported?

Businesses should report the amount listed on the Schedule 1299-A. 

Return to index

If a business has changed names since the time of the original application for certification for incentives, which business name should be used on the report?

You should use the name of the business provided on the application.

Return to index

What if I make an error on a report?

If an error is made on a report that has already been submitted, you must submit a new report through the same method that you filed the original. All information for the report must be entered again in its entirety.

Return to index

If I save a report that I have not yet submitted, how long will it be stored in the system for me to retrieve and complete?

The report will expire after 90 days of inactivity. This means that as long as the report is being actively modified (changing information, adding businesses, etc.), the report will be retained. Just opening the saved report and looking at it does not count as actively modified. If 90 days elapses without any modifications to the report, it will be deleted.

Return to index

After I file my report, will I receive a confirmation that it has been completed?

Immediately after you have submitted your report, a confirmation page will appear. You should print or write down the confirmation number given. You will need this number in order to view your report at a later date. Please note: once the window of time for filing your report ends (soon after June 1, 2015), you will no longer be able to log into the reporting interface to view past reports.

Return to index

After I have filed my completed report and I have my confirmation number, how long should I keep these records?

The Illinois Department of Revenue recommends that you keep your confirmation number at least through the end of the filing deadline in case you wish to view your report again. You should keep your reports with your tax returns and information, and follow the standard time frame for keeping tax records for audit purposes. Please note: once the window of time for filing your report ends (soon after June 1, 2015), you will no longer be able to log into the reporting interface to view past reports.

Return to index

How do I view a report that has already been filed?

To view a previously filed report, you must return to the WebFile system and go into the type of report that was originally filed. You will be given a list of hyperlinks for all reports already filed. Select the hyperlink of the report you wish to view and enter your confirmation number when prompted. If you do not have the confirmation number for that particular report, use the contact information at the bottom of this page to retrieve the number. Make sure you include the specific report type, zone name (if applicable), and report year in your message.

Please note that after a reporting period closes, you will not be able to view a previously filed report.

Return to index

Can I access last year's report?

You are not able to access last year's report. Please be sure to print a copy of this year's report when it is complete. You will not be able to access it once the reporting period closes.

Return to index

Can I use the same access code as the code I used last year when filing my report?

Yes, you can use the same access code as the code you used last year when filing your report.

Return to index

How do I retrieve an unknown confirmation number?

If you do not know your confirmation number for a particular report, use the contact information at the bottom of this page to retrieve the number. Make sure you include the specific report type, zone name (if applicable), and report year in your message.

Return to index

Submit a question