On August 7, 2012, Illinois Governor Pat Quinn signed SB 3616, now Public Act 97-905, into state law, requiring all businesses receiving incentives located in (1) Illinois Enterprise Zones or (2) River Edge Redevelopment Zones or (3) are designated as High Impact businesses, to annually report those benefits received to the Illinois Department of Revenue (“IDOR”). The IDOR issued much anticipated guidance on the new compliance and reporting process on February 28, 2013.
Reporting Requirements for Enterprise Zone Businesse
The Enterprise Zone Business Report must be filed by March 30th to report Enterprise Zone benefits received during the prior calendar year. Fiscal year businesses must use the most recently completed tax year for which the business filed an income tax return. Enterprise Zone benefits may comprise the following incentives: income tax, sales tax (including the building materials exemption), property tax, and utility tax.
For this initial filing year, the IDOR provided for an automatic 60-day extension, to May 29, 2013, for businesses to gather necessary data. No additional filings are necessary to obtain the extension. This is a one-time only extension—all future year Enterprise Zone Business Report filings will be due by the annual March 30th deadline, with no current guidance provided regarding future extension requests. The Enterprise Zone Business Report must be filed online through the IDOR’s WebFile platform.
Additionally, Enterprise Zone Administrators are also required to report job creation and retention, and capital investment derived from projects within their Zone. The Administrator Report is due on March 30, 2013, with no automatic extension granted for this initial filing year. Enterprise Zone Administrators will be reaching out to businesses within their Zones to obtain this information in a timely manner.
Penalties for failure to report Enterprise Zone benefits are substantial, and could result in a business’ ineligibility to receive future benefits.
True Partners Consulting’s Credits and Incentives Practice can quickly assist your business with timely filing of initial compliance reports. Our team of knowledgeable professionals provide advice and perform services to determine your specific reporting requirements, prepare the required compliance reports and develop an on-going process for your business to collect data for future years’ reporting. Before placing additional strain on already over-worked business resources, contact one of True Partners Consulting’s experts today.
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