What is the River Edge Redevelopment Zone?

A River Edge Redevelopment Zone is a specific area designated by the State of Illinois to receive tax incentives and other benefts to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state.  The Rock Island River Edge Redevelopment Zone was certified in 2025. 

How do I know if my property is in the Rock Island River Edge Redevelopment Zone?

A map of the Rock Island River Edge Redevelopment Zone boundaries is available here. 

You may also contact the program administrator at (309) 732-2900 to verify the location. 

What incentives are available in the Rock Island River Edge Redevelopment Zone? 

Zone incentives are established by State legislation and by municipal ordinance.  The following incentives are offered in the Rock Island River Edge Redevelopment Zone:

Sales Tax Exemption for Building Materials

A sales tax exemption is available for the purchase of building materials that will be permanently affixed to a property in the Enterprise Zone. 

How do I apply for Sales Tax Exemption for Building Materials? 

An application for a Building Materials Exemption Certificate must be submitted to the program administrator for approval.  If the program administrator determines that the project meets the required criteria, the applicant will receive a "Certificate of Eligibility" and Illinois Department of Revenue form.

Purchasing Building Materials

Only building materials purchased within the State of Illinois through a legitimate building materials retailer or distributor is subject to the sales tax exemption.  The materials purchased must be permanently affixed to the real estate.  To receive the sales tax exemption, the purchaser must present a valid "Certificate of Eligibility" and provide the completed form to the retailer. 

Certificate Holder Reporting Requirements

Businesses who have received a Building Materials Exemption Certificate must annually report to the Illinois Department of Revenue.  Reports are due no later than May 31 of each year and shall cover the previous calendar year.  Failure to report data may result in ineligibility to receive incentives.  For more information on reporting requirements, visit the FAQ pages on the Department of Revenue's website.

State Historic Preservation Tax Credits

A property that applies for and qualifies for the Federal Historic Preservation Tax Credit (20% tax credit on owner's tax liability) is also eligible for a River Edge Historic Preservation Tax Credit (25% tax credit on owner's tax liability) from the State of Illinois.

New Construction Jobs Credits

This credit allows eligible project owners to deduct received tax credits from their taxable income. Tax credits are issued based on the incremental income tac attributable to the River Edge construction employees employed on an eligible project.

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. 

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 operations in the RERZ from their taxable income.