ILLINOIS ENTERPRISE ZONE PROGRAM
TAX QUESTIONS AND ANSWERS

CORPORATE CONTRIBUTION DEDUCTION

What is the corporate contribution deduction? - The Illinois Income Tax Act 35 ILCS 5/203 provides that corporations may make donations to designated zone organizations for projects approved by the Illinois Department of Commerce and Community Affairs, and claim an income tax deduction at double the value of the contribution, to the extent that 1) the contribution qualifies as a charitable contribution under Section 170, Subsection (c) of the Internal Revenue Code; and 2) the Department approves the amount and type of contribution which may be claimed as a deduction.

What is a designated zone organization? - Only an organization that meets the eligibility criteria set forth in the Enterprise Zone Act, including approval from the local government and the Illinois Department of Commerce and Community Affairs, is a designated zone organization. For a list of these groups, contact local zone administrators or call the Department at 217/785-6142.

Who is an eligible taxpayer? - Only corporations may deduct twice the amount of cash or in-kind contribution made to a designated zone organization project.

What is an approved contribution? - In order to deduct twice the amount of a contribution, the contribution must be approved by the Illinois Department of Commerce and Community Affairs and must be made to an approved designated zone organization.

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