How To Get: Chicago Building Materials Tax Exemption Certificate

Question

Hello Chicago Friends-

In doing my own due diligence (which involves calling the city ;) I have not gotten a totally clear answer as to whether or not we would qualify for tax exemption with regards to the building materials we purchase. Our current GC has one but he got it a long time ago. I'm sure rules and stipulations have changed. Can anyone shed some light on this? I understand these 3 categories below exist but am not sure if we fit into one of the 6 zones or not. (Their online maps are kind of cryptic. At least the ones I found on their website are...)

1. 6 Enterprise Zones - city specific

2. River Edge Redevelopment Areas

3. High Impact Business Area

From Publication 139"Contractors, sub-contractors, and other entities participating in a real estateconstruction, rehabilitation, or renovation project in an Enterprise Zone or a RiverEdge Redevelopment Zone – or for a state-certified High Impact Business – maypurchase qualified building materials for the project exempt from sales tax."Thanks for any help!

Tom Shallcross · Answer

@Jennie Berger - I’m familiar with the enterprise zone exemptions and have utilized the program on several projects. I had a BP post on it but it was a while ago and couldn’t easily find it.

If you’re project is in an enterprise zone, you fill out this one page form, show proof of ownership and permits and get approved within a few business days.

They email you a certificate and there is then one more form to fill out so your contractors can get the certificate specific for your job. Most, but not all major suppliers accept it and waive your sales tax when making your purchases.

Feel free to DM with any specific questions.

Tom Shallcross · Answer

@Jennie Berger - the EZ is address specific, so you need to get a new one for each project.

Jennie Berger · Answer

Thanks @Tom Shallcross. You rock. :D

@Tom Shallcross & @Jonathan Klemm Can y'all just use that cert on specific projects? Or do you just keep it and use it since you have done work in those areas and plan to do more...?

Tom Shallcross · Answer

@Jennie Berger - Yes, I found the old BP thread that also has the Interactive Map on it: EZ in IL Thread

Interactive Map - Chicago EZ - Interactive Map

Links to individual zones: Map of 6 EZ Zones

Jonathan Klemm · Answer

@Jennie Berger - I am not super familiar with the topic, but definitely appreciate your post.

We've got plenty of tax exemptions on some of the public jobs I've worked on but never for any residential.

How To Get: Chicago Building Materials Tax Exemption Certificate

How To Get: Chicago Building Materials Tax Exemption Certificate

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