You may take this credit if you:

• placed qualified property in service in an Illinois enterprise zone within the tax year,
• placed it in service on or after the date the zone was officially designated as an enterprise 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 Investment Credit if it was previously used in Illinois in a manner that qualified for that credit or for the Replacement Tax Investment Credit on Form IL-477. 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 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.

Describe each item of qualified property you placed in service in an Illinois enterprise zone.

Enter the date, including the month and year, each item of qualified property was placed in service in Illinois. An item is placed in service on the earlier of:

• the date the item is placed in a condition or state of readiness and availability for its specifically assigned function, or
• the date the depreciation period of the item begins. (Generally, this will be the same date the item is placed in service for purposes of the federal depreciation deduction.)

If you are using the federal accelerated cost recovery system (ACRS) to depreciate the property, enter the ACRS class assigned to each item of qualified property. Property assigned to an ACRS class of less than four years is not qualified.

If you are not using the ACRS method to depreciate the property, enter the useful life assigned to the property for federal depreciation purposes. The useful life of the property when placed in service must be four or more years to qualify.

Indicate whether each item of qualified property is new or used. If the property was previously used, enter the abbreviation of the state where the property was located.

For each item of property, enter the basis used to figure the depreciation deduction for federal income tax purposes.

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