River Edge Redevelopment Zone

COVID-19 has had an obvious impact on all of our lives and business operations, including work at the Department of Commerce and Economic Opportunity as well. Recognizing this impact, DCEO will be extending the deadlines for companies required to submit Corporate Accountability reports. Specifically, the April 15th deadline has been extended to and including Friday, May 15th. If you have any questions, please direct them to CEO.IlCorpAcct@Illinois.gov. Thank you

The River Edge Redevelopment Zone Program (RERZ) helps revive and redevelop environmentally challenged properties adjacent to rivers in Illinois.  The River Edge Redevelopment Zone Act authorizes the Illinois Department of Commerce to designate zones in five cities:  Aurora,   East St. Louis, Elgin, Peoria and Rockford.

RERZ provides several incentives authorized by State law. Two of these – sales tax exemption and property tax abatement (if offered in the zone) – are administered by the local zone administrators.  The others involve tax incentives are claimed on your Illinois Income Tax filing forms.

  • Dividend Income Deduction:  Allows individuals, corporations, trusts and estates to deduct an amount equal to dividends paid to them by a corporation that conducts substantially all of its operation in the RERZ from their taxable income.
  • Interest Income Deduction:  Allows financial corporations to deduct an amount equal to the interest received for a loan for development in an RERZ from their corporate State Income tax.  Loans must be secured by property located within an RERZ.
  • Building Materials Sales Tax Exemption:  Allows for exemption of sales tax on construction materials for non-residential projects within the RERZ.  Forms necessary to claim this “point-of-sales” exemption are available from the local administrator.
  • Property Tax Abatement:  RERZs may offer property tax abatement within the zone.  To determine if a property tax abatement is vailable, contact the local zone administrator.

For tax information on the River Edge Redevelopment Program, click here.

For general information about RERZs, contact:

Justin Heather
Business Development
312.814.9592
Justin.Heather@illinois.gov
TYY: 800.785.6055 

For more information about the Peoria RERZ, contact:
Kevin Evans
Sr. Economic Engagement Specialist
City of Peoria
City Hall
419 Fulton Street, Room 207, Peoria, IL 61602
309.494.8651
kevans@peoriagov.org

For information about the Rockford RERZ, contact:
Karl F. Franzen
Director, Community and Economic Development Department
City of Rockford | 425 E. State St. | Rockford, IL 61104
779-348-7424 – office
 
City Hall is currently closed to the public to minimize opportunities to spread COVID-19 in our community.  Community and Economic Development staff will continue to provide full range of services through phone, email, and web services. 
 
Please visit the City of Rockford’s COVID-19 webpage for a Business Resource Guide.

For information about the Aurora RERZ, contact:
Trevor Dick
Director of Development Strategy & Facilitation
Mayors Office of Economic Development City of Aurora
77 S. Broadway, 2nd floor
Aurora, IL 60505
630.256.3081
tdick@aurora-il.org

For more information about the East St. Louis RERZ, contact:
Myisa Whitlock
Director, Community & Economic Development
City of East St. Louis
301 River Park Drive
East St. Louis, IL 62201
Phone: 618.482.6600 ext. 1659
mwhitlock@cesl.us
www.cesl.us

For more information about the Elgin RERZ, contact:
Richard G. Kozal
Assistant City Manager
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555
847.931.6633
KOZAL_R@cityofelgin.org