Illinois Department of Revenue
 
 
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Business Incentives Reporting FAQ’s

 
 

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

Who is Required to File a Report?

The following summarizes reporting requirements for calendar year 2013 due in 2014, 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, 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. The requirement to file a BMEC report is new, and is mandated by Public Act 98-0109, effective July 25, 2013.

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 receive incentives because they are located within either an Enterprise Zone or River Edge Redevelopment Zone, or because they are a High Impact Business, must file a business report with IDOR. Each business that receives incentives must provide the information IDOR requests. IDOR will determine the value of incentives for the business based on the information reported.

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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 receives incentives for multiple projects in the same zone, you will have to report the aggregate information of all projects in one report for the entire Enterprise Zone.

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How do I report projects in multiple Enterprise Zones?

If your business receives incentives for multiple projects in different zones, you must file one report per Enterprise Zone. Remember, if your business receives incentives for multiple projects in the same zone, you will have to report the aggregate information of all projects in one report for the entire Enterprise Zone.

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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 operates in multiple zones, reports should be submitted per Enterprise Zone.

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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.

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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.

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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.

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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.

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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.

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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.

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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 2013.  For projects certified in 2013, and ongoing in 2014, you will report the amounts spent in 2014 on next year’s report.

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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.

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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.

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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?

If the building materials were purchased before July 1, 2013, they should be reported by the business on the required business report even if the materials were purchased by a contractor on behalf of the business. Building materials purchased on or after July 1, 2013, must be reported by the holders of the Department of Revenue-issued Building Material Exemption Certificates on a separate BMEC report.

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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. 

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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.

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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.

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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.

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After I file my report, will I received 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, if you choose to at a later date. Please note: once the window of time for filing your report ends (soon after June 2, 2014), you will no longer be able to log into the reporting interface to view past reports.

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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 2, 2014), you will no longer be able to log into the reporting interface to view past reports.

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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.

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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.

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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.

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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.

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