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Sales Tax Exemption for Wind Energy Business Designated High Impact Business

Savings Category 
Wind (All)
Program Info
Sector Name 
Illinois Department of Commerce and Economic Opportunity
Program Type 
Sales Tax Incentive
Rebate Amount 

100% exemption of Retailers' Occupation Tax for building materials incorporated into the facility

A business establishing a new wind power facility in Illinois that will not be located in an Enterprise Zone* may be eligible for designation as a "High Impact Business." After receiving the designation, the facility is entitled to a full exemption of the state sales tax (6.25%) and any additional local state sales taxes for building materials incorporated into the facility. The project must involve a minimum of a $12 million investment creating 500 full-time jobs or an investment of $30 million causing the retention of 1,500 full-time jobs.

A wind power facility must be new (or an expansion of an existing facility) and placed in service on or after July 1, 2009. It must generate electricity using wind turbines 500 kW or greater. The associated transmission lines, substations and related equipment are included in the definition of a wind power facility.

A wind power facility must apply to the Department of Commerce and Economic Opportunity (DCEO) for designation as Wind Energy Business within the High Impact Business Program. Applications are accepted throughout the year; once an application is received, DCEO will respond within 30 days. Required application information is available in the administrative code (14 Ill. Adm. Code, Part 520.603). Once designation is granted, the business will be eligible for the sales tax benefits. As a condition of designation (and to receive the tax benefits), a Wind Energy Business will be required to comply with the Prevailing Wage Act for construction labor.

*Locating within an Enterprise Zone offers businesses a different package of incentives and makes them ineligible for designation as a High Impact Business.