Enterprise Zone

Among the benefits of Gateway's designation as an Illinois Enterprise Zone are numerous tax advantages:

Property Tax Abatement:

Up to 100 percent of new taxes on improvements abated in Years 1 through 7, 70 percent abated in Year 8, 40 percent abated in Year 9, 10 percent abated in Year 10, fully assessed and taxed thereafter.

Sales Tax Exemption:

Sales tax exemption on building materials purchased in Illinois.

Machinery and Equipment Tax Exemption:

State sales tax exemption on purchases of tangible personal property used or consumed in the manufacturing or assembly process, when making a $5 million investment and employing 200 or more.

Utility Tax Exemption:

A 100 percent utility-tax exemption for 5 years (renewable for 5-year periods up to a total of 20 years) for businesses making a $5 million investment and employing 200 or more.

Investment Tax Credit:

0.5 percent tax credit for investments in machinery, equipment, and buildings.

Dividend Subtraction:

Individuals, corporations, trusts, and estates can deduct from their taxable earnings an amount equal to the dividends paid by a corporation that conducts substantially all of its operations in the Enterprise Zone.

Job Tax Credit:

$500 state income tax credit per hire of dislocated worker or economically disadvantaged individual.

Other State Programs:
  • Job-Training Support: The Illinois Industrial Training Program offers grants for up to 50 percent of total job-training costs.
  • Training Expense Credit: A state income tax credit that employers earn based on costs incurred in employee training.
  • EDGE Tax Credit Program: Offers up to 3 percent of payroll as a tax credit to employers meeting employment and investment criteria.

Among competing markets for distribution centers, St. Louis is clearly the least-cost option in total operating cost when adjusted for labor productivity. Chicago is highest.