Building Material Sales Tax Exemption

Building materials used in new construction or rehabilitation of properties within 

Rockford’s Enterprise Zones may qualify for an 8.25% sales tax exemption when the materials are permanently incorporated into the project. To receive this exemption, purchasers must obtain a Certificate of Eligibility issued by the Illinois Department of Revenue.

Application Process:


Contractors or property owners must apply for the Certificate of Eligibility through the City of Rockford Enterprise Zone Administrator. Retailers are required to keep a copy of the certificate on file to document the exemption.

  1. Project Application (PDF) 
    • Submitted by property owner 
    • No associated fees
    • Subject to Zone Administrator's approval
  2. Contractors Application (PDF) 
    • Submitted by each contractor and sub who will be purchasing materials
    • Administrative fee applicable

Applications can be submitted to Rea.Sarker@RockfordIL.gov or by mail, 425 E State Street, 2nd Floor, Rockford, IL 61104.

  • Administrative fees must be paid by check made out to the City of Rockford; no digital payment options are available. 

Reporting:


A Project Completion Report must be completed by the owner or general contractor and submitted to the City within 30 days of project completion.

State Reporting

  • Certificate holders will be required to file a report with the State for each year that a valid certificate is held. This report will be available February 1st each year, and can be found here: https://www.revenue.state.il.us/app/ezri/SessionNotice.html 
  • This report is required, even if the certificate was not used that year. 

Frequently Asked Questions

  • How much is the administrative fee? The Administrative fee is calculated on the Contractor's Application, it is 0.5% of the total cost of construction materials. Maximum administrative fee is $50,000 per project. 
  • How long will it take to receive my certificate? Once the all required items are received (Project Application submitted and approved, Contractor's Application & Administrative fee submitted), you should receive your certificate within two business days. 
  • How do I renew my certificate? Email your renewal request to rea.sarker@rockfordil.gov
  • What does FTE mean? Full Time Equivalent, or FTE, is a designation given to a combination of employees who individually do not have full-time status, but are equivalent to a full-time employee when grouped together.