Illinois Department of Revenue

Publication 139                                                                        June 2019

Application Process to Obtain Sales Tax 

Exemption Certificates for Building Materials 

                                         About this publication
  The information in this publication 
                                         Publication 139, Application Process to Obtain Sales Tax Exemption Certificates 
  is current as of the date of the 
                                         for Building Materials, has been developed to help obtain and describe the 
  publication. Please visit our website  requirements of Sales Tax Exemption Certificates for Building Materials. This 
  at tax.illinois.gov to verify you have publication supercedes Informational Bulletin FY 2013-16.
  the most current revision.
                                         Contractors, sub-contractors, and other entities participating in a real estate 
                                         construction, rehabilitation, or renovation project in an Enterprise Zone or a River 
  The contents of this publication       Edge Redevelopment Zone – or for a state-certified High Impact Business – may 
  are informational only and do not      purchase qualified building materials for the project exempt from sales tax.
  take the place of statutes, rules, 
  and court decisions. For many          Each contractor, sub-contractor, or other entity that purchases qualified 
                                         building materials for a project must have their own exemption certificate. 
  topics covered in this publication, 
                                         Contractors or sub-contractors may not use other contractors’ or other 
  we have provided a reference to        entities’ exemption certificates.
  the applicable section or part of 
  the Illinois Administrative Code       This publication provides a brief description of the requirements. For complete 
                                         information about what you need, visit our website at tax.illinois.gov and click on 
  for further clarification or more 
                                         the “Business Incentives Reporting ” link under the “Businesses” drop-down to get 
  detail. All of the sections and parts  started.  
  referenced can be found in Title 86 
  of the Illinois Administrative Code. 
                                         For information or forms, visit our website at: 
                                                               tax.illinois.gov

Who is required to obtain a Building                     What information does IDOR require to 
Materials Exemption Certificate?                         apply for an exemption certificate?
• Each construction contractor, sub-contractor, or       • Name, address and e-mail address of the construction 
  other entity that purchases building materials to be     contractor, sub-contractor, or other entity seeking a 
  incorporated into real estate in an Enterprise Zone      certificate;
  or River Edge Redevelopment Zone by rehabilitation,    • Name of the Enterprise Zone or River Edge 
  remodeling or new construction.                          Redevelopment Zone (not necessary for High Impact 
• Each construction contractor, sub-contractor, or other   Business locations);
  entity that purchases building materials that will be  • The name of the project;
  incorporated into a High Impact Business location      • The address (or location) of the project;
  as designated by the Department of Commerce and        • The estimated amount of the exemption based on the 
  Economic Opportunity.                                    percentage of the contract that consists of qualified 
                                                           materials; and 
                                                         • Federal Employer Identification Number (FEIN) or 
                                                           Applicant ID

How do I apply for a Building Materials                        How will a retailer know when a purchaser 
Exemption Certificate?                                         has a valid exemption certificate? 
• Construction contractors, sub-contractors, or other          When a certificate holder purchases tax exempt building 
  entities may obtain an Applicant ID through the Illinois     materials, the certificate holder must submit a signed 
  Department of Revenue (IDOR) website to expedite             statement to the retailer that contains the certificate number, 
  the Building Materials Exemption Certificate application     the zone, the project, and the qualified materials being 
  process. IDOR will provide an Applicant ID by email,         purchased. Form EZ-1, Building Materials Exemption 
  which the applicant can bring to the Zone Administrator      Certification, contains all necessary information and will 
  or High Impact Business project manager to complete the      be provided to certificate holders when they receive their 
  application. Select the “Proceed to the BMEC application”    certificates. Form EZ-1 is also available for download at 
  link on the “Business Incentives” page to get started.       tax.illinois.gov. 
• Construction contractors, sub-contractors, or other          Note: It is the seller’s responsibility to verify that the 
  entities are required to set up an account on IDOR’s         certificate holder’s building materials exemption certificate 
  website. To begin the process, click on the link in the      number is valid and active. You can confirm this by visiting our 
  Applicant ID email that was sent to you. You will be         website at tax.illinois.gov. Select the “Business Incentives 
  prompted to enter the Social Security Number or Federal      Reporting ” link under the “Businesses” drop-down on our 
  Employer Identification Number that you used to obtain       homepage and then select “Verify the validity of a Building 
  your Applicant ID. Next it will require you to create a      Materials Exemption Certificate” link.
  password and security questions for easy access in the 
  future. Once your account has been set up, you will only 
                                                               Are there reporting requirements if I have 
  need to enter the Applicant ID and your password to have 
                                                               been issued an exemption certificate? 
  access to all exemption certificates associated with your 
                                                               If you obtained a sales tax exemption certificate issued 
  Applicant ID.
                                                               by IDOR, you are required to file a report with IDOR. You 
• Construction contractors, sub-contractors, or other 
                                                               are required to report the dollar amount of exempt building 
  entities must request exemption certificates from the 
                                                               materials that you purchased. Each contractor, sub-
  Zone Administrator of the zone where the project 
                                                               contractor, or other entity that is issued a certificate is liable 
  is located or from the High Impact Business project 
                                                               to file, including filing a zero report when no purchases 
  manager. The Zone Administrator will then submit an 
                                                               were made. For information on reporting requirements, 
  application on behalf of the construction contractor, sub-
                                                               see Publication 140, Reporting Requirements for Business 
  contractor, or other entity for an exemption certificate 
                                                               Incentives.
  from IDOR.
• IDOR will issue an exemption certificate within 72 hours 
  of receiving an application.
                                                               For more information:
                                                               Find the most up-to-date information on the Illinois 
How long is a certificate valid?
                                                               Department of Revenue’s website at tax.illinois.gov. 
Zone Administrators determine the length of time that an 
exemption certificate is valid with a maximum of two years.    Frequently Asked Questions (FAQ) pages have been 
However, exemption certificates may be renewed by the Zone     developed to provide more specific detail about each 
Administrator upon request. Renewals can be submitted 30       reporting type. Look for the “Business Incentives 
days prior to expiration date. Contact your Zone Administrator Reporting” link under the “Businesses” drop-down on 
or High Impact Business project manager for more details.      our homepage to get started. 

What are the penalties for misuse of an 
exemption certificate? 
Certificate holders are responsible for ensuring that their 
certificates are used only to make qualified purchases.  A 
certificate holder who uses the certificate or allows it to be 
used to improperly avoid tax will be assessed taxes and 
penalties on the purchase, an additional monetary penalty 
equal to the state and local sales taxes on the purchase, and 
may be barred from securing certificates for other projects.
Each contractor, sub-contractor, or other entity that 
purchases qualified building materials for a project must 
have their own exemption certificate. Contractors or 
sub-contractors may not use other contractors’ or other 
entities’ exemption certificates.
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