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Ezel / Tax Rulings / IL
IL ST 11-0060-GIL Illinois Retailers' Occupation (Sales & Use) Tax 2011-08-11

Could an Illinois construction contractor claim the expanded enterprise-zone exemptions for manufacturing or pollution-control property?

Short answer: No. Illinois revoked ST 10-0101-GIL and clarified that the expanded enterprise-zone exemptions for property used in manufacturing or assembling and for property used in pollution-control facilities were available only to certified business enterprises or their lessors. Construction contractors could not claim those exemptions. The revocation and replacement clarification became effective when ST 11-0060-GIL was issued.

Apply this to your situation

This page answers the general question as of 2011. Ezel answers yours, under current Illinois tax law, with citations.

Currency note: this ruling is from 2011
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
Disclaimer: This is an official Illinois Department of Revenue General Information Letter (GIL), issued under 2 Ill. Adm. Code 1200.120. A GIL merely directs a taxpayer to the relevant Department regulations or other sources of information; it is NOT a statement of Department policy and is NOT binding on the Department. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Illinois tax professional about your specific situation.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.
View original ruling (PDF)

Plain-English summary

Construction contractors could not claim the expanded enterprise-zone exemptions for manufacturing property or pollution-control facilities. Those exemptions were available only to certified business enterprises or their lessors.

Illinois issued this GIL to revoke ST 10-0101-GIL and correct its earlier statements about contractors.

The two provisions covered tangible personal property:

  • Used or consumed within an enterprise zone to manufacture or assemble property for wholesale or retail sale or lease.
  • Used or consumed in operating pollution-control facilities within an enterprise zone.

The revocation and clarification became effective upon issuance of ST 11-0060-GIL.

What this means for you

Construction contractors

Do not claim either exemption in your own capacity as contractor under the rules cited in this letter.

Certified businesses and lessors

The GIL limits eligibility to those categories but does not determine whether any particular business, lessor, purchase, or property met every exemption condition.

Common questions

Q: Did this letter leave ST 10-0101-GIL in effect?
A: No. It expressly revoked it.

Q: Could a contractor claim the expanded manufacturing exemption?
A: No.

Q: Who could qualify under the clarification?
A: Certified business enterprises or their lessors, subject to the cited rules.

Citations and references

  • 86 Ill. Adm. Code 130.1951(g) and (g)(11)(B) — manufacturing and assembling property in enterprise zones.
  • 86 Ill. Adm. Code 130.1951(i) and (i)(7)(B) — pollution-control facilities in enterprise zones.

Source

Original ruling text

ST 11-0060-GIL 08/11/2011 ENTERPRISE ZONES
This letter revokes General Information Letter ST 10-0101-GIL. This letter clarifies that the
expanded manufacturing and machinery equipment exemption and the expanded pollution
control facilities exemption are available only to certified business enterprises or their lessors
and are not available to construction contractors. See 86 Ill. Adm. Code 130.1951(g)(11)(B)
and 130.1951(i)(7)(B). (This is a GIL.)

August 11, 2011

Dear Xxxxx:
This General Information Letter, issued pursuant to 2 Ill. Adm. Code 1200.120, is sent to
revoke General Information Letter ST 10-0101-GIL (copy enclosed) that was sent to you dated
October 27, 2010.
This letter is being sent to clarify the Department’s statements in General Information Letter ST
10-0101-GIL as they relate to construction contractors and certain enterprise zone exemptions.
Specifically, this letter is being sent to clarify that the exemptions from tax on the sales of tangible
personal property
(i)
to be used or consumed within an enterprise zone in the process of manufacturing or
assembling tangible personal property for wholesale or retail sale or lease (86 Ill. Adm.
Code 130.1951(g)) or
(ii)
purchased for use or consumption in the operation of pollution control facilities within an
enterprise zone (86 Ill. Adm. Code 130.1951(i))
are available only to certified business enterprises or their lessors and are not available to
construction contractors. (See 86 Ill. Adm. 130.1951(g)(11)(B) and 130.1951(i)(7)(B)).
Upon issuance of this General Information Letter, the provisions of this General Information
Letter rescinding General Information Letter ST 10-0101-GIL shall become effective.
If you have questions concerning the revocation of General Information Letter ST 10-0101-GIL,
you may contact me at (217) 782-2844.
Sincerely

Samuel J. Moore
Associate Counsel
SJM:msk
Enc.

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