Enterprise Zone

The Gateway Commerce Center Enterprise Zone was established in September 1997 and encompasses parts of Edwardsville, Pontoon Beach and unincorporated Madison County. Like all of the other enterprise zones in Illinois, the Gateway Commerce Center Enterprise Zone provides numerous incentives to attract businesses, and help existing operations expand and create jobs within the designated area. Illinois' enterprise zones can remain in effect for up to 30 years; the Gateway Commerce Enterprise Zone has an effective expiration date of December 30, 2027. 

View a map of the current enterprise zones in Madison County; the Gateway Commerce Enterprise Zone is shown in purple. View a map of Illinois' enterprise zones. 

Madison County serves as the local administrator for the Gateway Commerce Center Enterprise Zone, but those looking to explore opportunities to utilize the available incentives within Edwardsville can contact James Arnold, the City's economic and community development director, with initial inquiries. Incentives available to qualifying businesses and projects are spelled out in a Madison County fact sheet available online.

Enterprise Zone Incentives

Property Tax Abatement: Property owners that improve and/or renovate industrial, commercial or manufacturing property within the zone and not in a Tax Increment Financing District (TIF) are eligible to receive a 10-year abatement of property taxes on the assessed value of the improvements and/or renovations by all municipalities and taxing bodies that have agreed to the abatement. To receive this abatement, property owners must obtain and submit building permits along with Enterprise Zone "Project Information Forms" for their renovation or improvement projects. 

Abatement amounts are as follows:

• First seven years: 100% of the assessed value of the improvements
• Year eight: 70% of the assessed value of the improvements
• Year nine: 40% of the assessed value of the improvements
• Year 10: 10% of the assessed value of the improvements

Sales Tax Exemption: A sales tax exemption on building materials used to improve and/or renovate real property for qualified projects within the Gateway Commerce Center Enterprise Zone is available to individuals and businesses that purchase their building materials from Illinois retailers or suppliers. To receive this sales tax exemption, contractors or businesses must provide retailers "Purchaser Statements” that identify their renovation or improvement projects as being within the zone and a certification from the Gateway Commerce Center Enterprise Zone administrator that the proposed project is located within the zone and eligible to receive the sales tax exemption. The zone administrator processes the certificates in conjunction with the Illinois Department of Revenue, which issues them through emails. 

Investment Tax Credit: A state investment tax credit of 0.5% is allowed for a taxpayer that invests in qualified property in a zone. Qualified property includes machinery, equipment and buildings. The credit may be carried forward for up to five years. This credit is in addition to the regular 0.5% investment tax credit, which is available throughout the state, as well as a 0.5% credit for taxpayers that increase their employment in Illinois by 1% over the preceding year. 

Enterprise Zone Machinery and Equipment Exemption: A 6.25% state sales tax exemption is available on purchases of tangible personal property to be used or consumed in the manufacturing or assembly process or in the operation of a pollution control facility within an enterprise zone. Eligibility for this exemption is contingent upon a business making a $5 million investment that causes the creation of 200 full-time equivalent jobs in Illinois, or an investment of $40 million for the retention of 2,000 full-time jobs in Illinois, or an investment of $40 million and retaining 90% of the jobs in place on the date of certification. The majority of the jobs created or retained must be located in the enterprise zone in which the investment occurs. A business must make application to and be certified by the Illinois Department of Commerce and Economic Opportunity (DCEO). The exemption is applicable to the following: 

• Hand tools used to maintain, repair or operate machinery and equipment 
• Abrasives, acids, polishing compounds or lubricants used or consumed in the manufacturing or assembly process 
• Manufacturing fuels, coolants, adhesives, solvents or cleaning compounds used to maintain, repair or operate machinery and equipment 
• Protective clothing and safety equipment 
• Fuels, chemicals and catalysts used in the operation of pollution control facilities 

Utility Tax Exemption: A state utility tax exemption on gas, electricity, and the Illinois Commerce Commission's administrative charge is available to businesses located in enterprise zones. Eligibility for this exemption is contingent upon a business making a $5 million investment that causes the creation of 200 full-time equivalent jobs in Illinois, or an investment of $20 million for the retention of 1,000 full-time jobs in Illinois. The majority of the jobs created or retained must be located in the enterprise zone in which the investment occurs. A business must make application to and be certified by DCEO for the state utility tax exemption.

City of Edwardsville Business Resources: The Gateway Commerce Center Enterprise Zone incentives can be combined with opportunities offered by the City, including the Commercial Building Improvement Program and the Commercial Facade Program. Please contact James Arnold, the City's economic and community development director, for additional details on these programs.