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:
Assistant Deputy Director
For more information about the Peoria RERZ, contact:
Assistant City Manager
City of Peoria
419 Fulton Street, Room 207, Peoria, IL 61602
For information about the Rockford RERZ, contact:
Karl F. Franzen
Economic Development Coordinator
City of Rockford
779-348-7419 - office
For information about the Aurora RERZ, contact:
Chief Development Officer
City of Aurora
1 South Broadway
Aurora, IL 60507
For more information about the East St. Louis RERZ, contact:
Director, Community & Economic Development
City of East St. Louis
301 River Park Drive
East St. Louis, IL 62201
Phone: 618.482.6600 ext. 1659
For more information about the Elgin RERZ, contact:
Richard G. Kozal
Assistant City Manager
City of Elgin
150 Dexter Court
Elgin, IL 60120-5555