You may take this credit if you:
- Placed qualified property in service in an Illinois enterprise zone or river edge redevelopment zone within the tax year,
- Placed the qualified property in service on or after the date the zone was officially designated as an enterprise zone or river edge redevelopment zone, and
- Continued to use the qualified property on the last day of your tax year.
Qualified property is property that:
- Is tangible,
- Is depreciable according to IRC Section 167,
- Has a useful life of four or more years as of the date placed in service in Illinois, and
- Is acquired by purchase as defined in IRC Section 179(d).
Qualified property can be new or used but does not qualify for the Enterprise Zone or River Edge Redevelopment Zone Investment Credit if it was previously used in Illinois in a manner that qualified for that credit or for the credit on Form IL-477, Replacement Tax Investment Credit.
Such property includes buildings, structural components of buildings, and signs that are real property. It does not include land or improvements to real property that are not a structural component of a building, such as landscaping, sewer lines, local access roads, fencing, parking lots, and other appurtenances.
Any improvement or addition made on or after the date the enterprise zone or river edge redevelopment zone was designated or the business was designated as a high impact business is considered to be qualified property to the extent that the improvement or addition is of a capital nature, which increases the adjusted basis of the property previously placed in service in Illinois and otherwise meets the requirements of qualified property.