River Edge Redevelopment Zone

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.
• New Construction Jobs Credits: Allows eligible project owners to deduct received tax credits from their taxable income. Tax credits are issued based on the incremental income tax attributable to the River Edge construction employees employed on an eligible project.
• 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 viable, contact the local zone administrator.

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

For general information about RERZs, contact:

Ben Denney
Business Development
217-785-6169
CEO.EZHelp@illinois.gov
Ben.Denney@Illinois.gov
TYY: 800.785.6055 

For more information about the Peoria RERZ, contact:
Debbie Van Sickle
Economic Development Manager
City of Peoria
City Hall
419 Fulton Street, Room 207, Peoria, IL 61602
309.494.8943
dvansickle@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 

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:
Shaneal R. Clayborne, MA, MA.Ed
Director of Economic/Community Development
City of East St. Louis
301 River Park Drive
East St. Louis, IL 62201
Phone: 618.482.1659
sclayborne@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