Your Guide to Construction, Renovation, and Zoning Laws in Illinois

Buying property anywhere in the U.S. can be risky unless you know all the details you need beforehand. Illinois has several property-related regulations regarding construction, renovation, and zoning that you should be aware of before purchasing. According to the U.S. Census Bureau, Illinois has about 5.47 million properties. There is no set figure for commercial properties, but the state has a significant number, especially in Chicago.

Property-related laws fall into two general categories: state-level and local (town/city/county/municipality). Each state divides property law responsibilities between these two entities; some laws fall under the jurisdiction of the state, while others fall under the jurisdiction of local government. Under each main category, there are many different rules and regulations to review.

State Level (Regulations & Codes)

Illinois is unique in that, before 2025, each local jurisdiction had its own building code. As of January 1, 2025, the state has adopted a statewide building code based on the International Code Council (ICC) standards. It includes the International Building Code (IBC), International Residential Code (IRC), and International Existing Building Code (IEBC).

The state has adopted the 2021 version of the following codes:

International Building Code (IBC)
International Residential Code (IRC)
International Existing Building Code (IEBC)
National Electric Code (NEC)
Illinois Energy Conservation Code (IECC)
Illinois Accessibility Code
Illinois Plumbing Code

Municipalities and counties must confirm that their own building codes align with or exceed these baseline standards.

Construction

In addition to compliance with the new statewide building code, Illinois has numerous other construction-related laws at both the state and local levels. These rules cover building codes, contract requirements, prevailing wage rates, and safety issues.

The Illinois Procurement Code covers construction management services for state projects. The Public Construction Bond Actoutlines the requirements for performance and payment bonds on public projects. The Illinois Capital Development Board (CDB) makes changes to the statewide building codes and requires local jurisdictions to inform them of any changes they make. The CDB also provides guidance and resources related to building codes. Local jurisdictions adopt and amend building codes. They also enforce building codes and safety regulations, issue permits, perform inspections, visit construction sites, and address building code violations.

Some of the key construction laws in Illinois include:

Building Codes: As of January 1, 2025, Illinois has a statewide building code based on the 2021 version of the International Building Code (IBC), and local jurisdictions use this as a baseline upon which they can make even stricter codes. The Illinois Accessibility Code implements the Environmental Barriers Act. The Illinois Energy Conservation Act is designed to reduce energy consumption and pollution.
Construction Contracts: A written contract is required under the Home Repairs & Remodeling Act if the cost of any residential property repairs exceeds $1,000. The contract must include the total price, the contractor's business name and address, and an acknowledgment of the Consumer Rights Brochure. The homeowner must explicitly acknowledge any arbitration agreements or jury trial waivers in contracts. Illinois does not mandate any specific clauses for general construction contracts. Certain provisions in building and construction contracts that make the contract subject to the laws of another state, thereby requiring litigation in that state, are against public policy in Illinois.
Prevailing Wage: The U.S. Prevailing Wage Act requires contractors and subcontractors on public works projects to pay laborers, workers, and mechanics the prevailing wage rate for similar work in the area. Contractors who violate the Prevailing Wage Act may incur penalties, be required to pay back wages, and face potential disqualification from future public works projects.
Professional Licensing: Illinois does not have a state-wide requirement for contractor licenses; however, many municipalities and counties do require contractor licensing.
Local Ordinances: Local governments may have their own building codes, which are based on the state-wide building code, as well as zoning regulations and other laws that contractors must adhere to when working in their jurisdictions.

The Illinois State Bar Association and the Illinois Capital Development Board offer resources and information on construction law and regulations.

Commercial Structures

Illinois has several regulations for commercial structures. They focus primarily on building codes, zoning, and energy efficiency. Some of the key areas included within them are structural integrity, fire safety, accessibility, and energy efficiency.

Some of the highlights of these laws include:

Building Codes: The Capital Development Board Act implemented a statewide building code on January 1, 2025. Although local jurisdictions can adopt their own building codes, they must meet the minimum standards outlined in the International Building Code (IBC) and the International Existing Building Code (IEBC). The Illinois Capital Development Board (CDB) website lists the following codes as relevant to commercial construction: IBC, IEBC, Illinois Energy Conservation Code, Illinois Accessibility Code, Illinois Plumbing Code, and Fire Prevention and Safety Rules (including NFPA 101).
Zoning: Local governments (counties and cities) have the power to regulate zoning, which dictates land use and building types in specific areas.
Energy Efficiency: The Illinois Energy Conservation Code, as outlined by the CDB, aims to reduce energy consumption and promote environmental protection. Although the state dictates these standards, local governments can adopt stricter energy conservation standards for commercial buildings, but not for residential structures.
Accessibility: The Environmental Barriers Act, which is based on the Illinois Accessibility Code, establishes design requirements for public buildings and multi-story housing to accommodate individuals with disabilities.
Fire Safety: The Illinois Office of the State Fire Marshal (OSFM) is responsible for enforcing codes related to fire safety and life safety in buildings.
Permits: Local municipalities require building permits for various construction activities, including new construction, additions, alterations to structures, changes of occupancy, and demolition.
Landlord Responsibilities: In Illinois, commercial landlords are required to ensure their properties comply with state and local building codes and fire safety regulations.
Factory-Built Structures: The Illinois Department of Public Health regulates commercial mobile structures, such as classrooms and offices, that are transported on their own wheels and are larger than 8 feet by 32 feet.
Rezoning: In Illinois, it is possible to request a rezoning of a commercial property to residential, but this process can be challenging and requires approval from both the local municipality and the county.

Residential Structures

As of January 1, 2025, Illinois has statewide building codes administered by the Capital Development Board (CDB) that apply to residential structures. Local authorities must adhere to these building codes if they choose to adopt or strengthen them. The statewide building code is known as the Illinois Residential Building Code Act and is based on the International Residential Code (IRC).

Some of the key areas covered in the Illinois residential building codes include:

Energy Conservation: The Illinois Energy Conservation Code is based on the International Energy Conservation Code (IECC) and is designed to regulate energy efficiency standards for residential and commercial buildings.
Plumbing: The Illinois Plumbing Code sets the standards for plumbing systems in residential buildings.
Electrical: The National Electrical Code (NEC) serves as the framework for electrical installations and safety in the state of Illinois.
Structural Design: The International Residential Code (IRC) and the International Building Code (IBC) include structural integrity and load-bearing standards for residential buildings, ensuring they are safe for people.
Fire Safety: Many of Illinois' residential building codes provide safety requirements, including fire safety devices such as smoke alarms, suppression systems, and sprinkler systems.

Check local government offices for specific details regarding residential building codes and safety regulations in your area before doing any work.

Safety Standards

During construction, many dangers exist, and Illinois construction laws work hard to keep workers and the public safe. Some of the regulations address site safety, equipment, and traffic control. Some of the most impactful laws include fall protection, hazard communication, scaffolding safety, and safe practices for electrical work and crane operations.

Some of the details of these rules are:

Fall Protection: Falls are one of the biggest concerns at construction sites. Illinois requires guardrails, safety nets, and personal fall arrest systems when workers are exposed to fall hazards, such as working at a height of 6 feet or more.
Hazard Communication: The state requires that any hazardous materials be clearly labeled and that workers receive safety data sheets and proper training before working with them.
Scaffolding: Scaffolding on job sites must be designed and constructed appropriately, inspected, and capable of supporting the intended weight.
Electrical Safety: Every precaution must be taken to prevent electrocution on construction sites. This includes proper grounding and insulation.
Crane Safety: Specific regulations contain rules governing the safe operation of cranes and derricks, which must also be adhered to.
Trench Safety: Illinois safety laws also require the use of protective systems, such as trench boxes and sloping techniques, to prevent cave-ins and protect lives.
Work Zone Safety: Work zone laws are designed to keep construction laborers safe. They include reduced speed limits, flaggers, and proper signage in work zones. Additionally, Scott's Law applies, and drivers must yield to emergency and maintenance vehicles.
Personal Protective Equipment (PPE): Construction employers must provide workers with appropriate PPE based on the hazards associated with their job.
Restroom Facilities: Construction job sites must include adequate and accessible restroom facilities, with specific requirements for distance from work areas.
Employer Responsibilities: Building employers are responsible for providing a safe work environment and for equipping workers with the necessary safety equipment and training to ensure their safety and well-being.
Employee Rights: Construction workers have the right to report any safety violations without fear of retaliation and to request Occupational Safety and Health Administration (OSHA) inspections.
Liability: Various parties, including property owners, manufacturers, and designers, can be held liable for accidents resulting from negligence or the use of defective equipment.

Local government inspectors oversee construction sites to ensure compliance with regulations. Anyone failing to comply with safety regulations may face penalties, including steep fines or stop-work orders.

Building Codes

Illinois uses several model building codes, primarily the International Codes (I-Codes) published by the International Code Council (ICC), to regulate construction and ensure safety. Additionally, Illinois has specific codes for plumbing, accessibility, and health care facilities. The most critical codes Illinois uses are listed below:

International Building Code (IBC)
International Residential Code (IRC) - for one and two-family dwellings and townhouses up to three stories high.
International Energy Conservation Code (IECC)
International Fire Code (IFC)
Illinois Accessibility Code
Illinois Plumbing Code
Illinois Health Care Facility Ventilation Code
Illinois Commercial HVAC Inspection and Maintenance Code - Based on ASHRAE 180, this code focuses on the inspection and maintenance of HVAC systems in commercial buildings.

Illinois also adopts codes related to elevators, manlifts, concrete construction, and more. Depending on the municipality, the rules may be more lax or stricter.

Asbestos Laws

The Illinois Department of Public Health (IDPH) and the Illinois Environmental Protection Agency (IPEA) regulate asbestos in construction, renovation, and demolition projects. These regulations align with federal standards, such as the National Emission Standards for Hazardous Air Pollutants (NESHAP), as outlined in the Clean Air Act. Some of the highlights of these laws include licensing requirements, notification requirements, and specific work practices designed to minimize asbestos exposure.

Some of Illinois' key asbestos regulations include:

Licensing: Anyone, including contractors, inspectors, supervisors, and workers involved in asbestos abatement projects in public and commercial buildings, must be licensed by the Illinois Department of Public Health.
Notification: Before commencing any demolition or renovation work that may disturb asbestos-containing materials (ACM) in buildings, including residential buildings with four or more units, contractors are required to notify the Illinois EPA and potentially local agencies, such as the City of Chicago or Cook County.
Work Practices: Specific work practices, as outlined in NESHAP regulations, must be followed during the removal, encapsulation, or enclosure of asbestos. This includes wetting procedures to prevent dust, proper containment of debris, and adherence to air quality standards.
Training: Workers involved in asbestos-related activities must complete accredited training programs.
Enforcement and Penalties: Failure to comply with asbestos regulations can result in fines, legal action, and other penalties.

Demolition and renovation activities in buildings with ACM require careful planning and execution to minimize exposure to asbestos. It's crucial to inspect buildings for ACM before any renovation or demolition work begins. Illinois has specific regulations regarding asbestos in schools, including the Asbestos Abatement Act, which addresses significant health hazards. Asbestos-containing waste must be disposed of properly in accordance with regulations, often requiring double-bagging and sealing in polyethylene plastic. Certain materials, such as thermal system insulation and surfacing materials in buildings constructed before 1981, are regulated as Presumed Asbestos-Containing Material (ACM) and require special handling.

Leaving asbestos in place, if in good condition, is often the best approach to minimize exposure risks. Disturbing ACM can release harmful asbestos fibers, so it's essential to follow proper procedures when handling it.

Contractor Licensing Laws

The state of Illinois does not have a statewide law requiring contractor licensing for general contractors who work on residential or commercial projects. However, the state does require licensing for trades like electricians, plumbers, and roofing contractors.

The Illinois Department of Financial and Professional Regulation (IDFPR) handles roofing licenses, while the Illinois Department of Public Health licenses plumbers.

Although Illinois does not have statewide regulations regarding licensing, many local authorities do require it. For example, before work can begin in Chicago, the contractor must obtain a general contractor's license from the City of Chicago Department of Buildings. In Aurora, Illinois, contractors can get licenses through the Divisions of Buildings and Permits.

Some jurisdictions require contractors to be at least 18 years old and provide proof of relevant experience and training. Local agencies also require contractors to carry a specific level of insurance and meet certain bonding amounts.

Insurance & Bonds

In Illinois, contractors are required to carry both insurance and surety bonds to operate legally within the state. Typically, contractors need general liability insurance with a $1,000,000 general aggregate and a $500,000 per-occurrence limit. Workers' compensation insurance is also mandatory for contractors that employ workers. Surety bond amounts range from $5,000 to $50,000, depending on the specific license and local regulations. General liability insurance is designed to cover potential damages to property or injuries to others that may occur during the work.

The bond amount varies. For example, roofing contractors may need a $10,000 or $25,000 bond, while plumbing contractors may need a $20,000 bond. The cost of a bond is a percentage of the bond amount, typically ranging from 1% to 10%. Generally, better credit scores result in lower premiums.

Some cities and counties have their own bonding requirements, which can be in addition to the state-level requirements.

Examples of Local Requirements

Will County: Requires a $10,000 surety bond.
Village of Lakewood: May require a $10,000 bond.
City of Elmhurst: A $10,000 bond may be required.

Public Works Contracts/Public Bidding

In Illinois, public works contracts, which involve construction or maintenance projects funded by public entities, are governed by specific regulations and procedures to ensure fairness, transparency, and accountability. These contracts are awarded through a competitive bidding process, often requiring public advertisement of the project and adherence to state laws and guidelines.

Some key highlights of how public works contracts in Illinois work are:

Project Initiation and Planning: A public body (state, political subdivision, or entity funded by public money) defines the project's scope, requirements, and budget. The public body determines the appropriate procurement method (competitive bidding, design-build, or other methods) based on the project's size and nature.
Competitive Bidding Process: The public body advertises the project to potential bidders through various channels, including online platforms like the Illinois Department of Transportation's Contractors Bulletin. The bidders receive detailed bid documents outlining the project specifications, timelines, and requirements, allowing them to decide whether to bid or not. Interested contractors submit their bids, including pricing and qualifications. Bids are opened publicly, and the public body reviews them to determine the lowest price and most responsible bidder. They award the contract to the bidder who best meets the requirements and offers the best value. The bidding process must be transparent and fair to all potential bidders. Contractors must demonstrate their ability to fulfill the contract requirements and their commitment to ethical and responsible business practices to be considered for the contract.
Contractual Agreements: Public works contracts include standard clauses regarding scope of work, payment terms, insurance requirements, indemnification, and dispute resolution. Illinois public works projects are subject to prevailing wage laws, which require contractors to pay their workers wages and benefits that are at or above the prevailing rate for similar work in the area. During construction, any changes must be documented through change orders and handled carefully. They may require rebidding if they exceed a certain percentage of the original contract price. Contractors typically need to provide performance and payment bonds to protect the public body and subcontractors in case of non-performance or non-payment. If disputes arise, the contract should outline procedures for resolving them, which may include mediation, arbitration, or litigation.
Compliance and Oversight: Public works contracts must comply with various state laws, including the Illinois Procurement Code, prevailing wage laws, and other relevant regulations. The public body, along with other government offices, is responsible for overseeing the project's progress and ensuring compliance with the contract terms. Public works projects should be managed in a way that serves the public interest and maximizes value for taxpayers.

Renovations

Illinois renovations require written contracts for any work that costs more than $1,000. Before signing the contract, homeowners must be given a copy of the "Home Repair, Know Your Consumer Rights" brochure. Renovations in Illinois are governed by the Home Repair and Remodeling Act (HRRA). Most renovations require permits, especially for structural changes, electrical updates, plumbing work, and HVAC system installations. Failure to obtain necessary permits can lead to fines and difficulties selling the property.

Some key aspects of Illinois laws regarding renovations include:

Home Repair and Remodeling Act: This act attempts to ensure fair and honest practices in the construction, remodeling, and repair industries.
Written Contracts: Written contracts for renovations must have the total cost, including parts, materials, and labor, and the contractor's business name and address.
Consequences of Skipping Permits: Failure to obtain the necessary permits can result in fines, difficulties selling the home, and potential issues with insurance claims.
Three-Day Right to Cancel: Homeowners have a three-day right to cancel a contract, subject to specific exceptions.
Contractor's Responsibilities: Contractors must disclose the three-day right to cancel (if applicable) and provide a form for homeowners to use to exercise that right.
Insurance Claims: If a homeowner is using insurance to pay for the work, they may have a right to cancel the contract under certain conditions related to insurance claim processing.
Enforcement: The Illinois Attorney General and State's Attorneys can enforce the HRRA, and violations are also considered violations of the Consumer Fraud and Deceptive Business Practices Act.

Environmental Laws

Illinois' environmental laws related to construction primarily focus on preventing pollution and protecting natural resources. Key areas of focus include air and water quality, waste management (including construction and demolition debris), and sustainable building practices. These laws are enforced through permits, inspections, and potential enforcement actions by the Illinois Environmental Protection Agency (IEPA).

Some of the highlights of Illinois environmental laws as they pertain to construction are:

The Illinois Environmental Protection Act: This law is the primary statute establishing a standardized, state-wide program for environmental protection. It encompasses various areas, including air and water quality, waste management, and pollution prevention.
Construction and Demolition Debris: The Act also regulates the handling and disposal of construction and demolition debris, including requirements for recovery facilities and prohibitions against open dumping.
Air Quality: The IEPA Bureau of Air administers air permitting programs. Construction permits are typically required for facilities that emit air contaminants, and the federal Prevention of Significant Deterioration and State Nonattainment New Source Review requirements may also be involved.
Water Quality: The IEPA regulates discharges into waterways and requires permits for construction activities that may impact water quality, such as those covered under the NPDES program for stormwater discharges.
Sustainable Building Practices: The Green Buildings Act (20 ILCS 3130) promotes sustainable building practices, mandating that certain new buildings and major renovations achieve LEED or Green Globes certification.
Permitting: The IEPA issues various environmental permits, including those related to air, water, and waste management. They also have a permit tracking system to assist with the process.
Restricted Status/Critical Review: The IEPA publishes a list of water supplies on Restricted Status or Critical Review, which can impact construction permits for water supply systems.

Before beginning any renovations, developers and contractors should consult with the Illinois EPA and other relevant professionals to ensure their construction projects comply with all applicable environmental laws and regulations.

Solar Regulations

Illinois prioritizes clean energy and has made significant strides in promoting solar energy development, particularly through regulations related to construction and development. Some of the highlights include solar-ready building codes, zoning regulations, and permitting processes designed to facilitate solar installations. Understanding these laws is crucial for property owners, developers, and installers.

Some of the details of solar regulations in Illinois include:

Solar-Ready Building Codes: Illinois has adopted building codes that mandate "solar-ready" zones on new residential and commercial buildings. These zones, typically on rooftops, must be free from obstructions and sized to accommodate a solar system that can meet a significant portion of the building's energy needs (often 40% of the roof area or enough to generate 100% of the building's electricity). Conduit pathways must also be installed to facilitate future solar panel wiring, and structural requirements ensure the roof can support the weight of a solar array. The purpose of these requirements is to encourage future solar installations that are easier and more cost-effective to implement.
Zoning Regulations: Cities and towns in Illinois have zoning ordinances that regulate solar installations, often addressing height limitations, setback requirements, and lot coverage. For example, solar panels must typically fit within the maximum building height (e.g., 30-35 feet for residential areas) and maintain specific distances from property lines. Counties are prohibited from banning or imposing moratoriums on solar development, and their zoning ordinances must not be more restrictive than state standards.
Permitting Process: Local governments require permits for solar installations, along with a detailed plan that outlines the system, electrical components, and structural information. Inspections are conducted after installation to ensure compliance with building, electrical, and safety codes. Illinois has also standardized permitting processes for commercial wind and solar facilities, aiming to streamline development and prevent overly restrictive local regulations.
Homeowners' Associations: Illinois law provides some protections for homeowners seeking to install solar within HOAs, preventing restrictions that would reduce system production by more than 10%.
Net Metering: Illinois has a net metering policy that allows customers with solar installations to receive credits on their electricity bills for the excess energy they feed back into the grid. However, changes coming in 2025 may allow customers to receive supply credits for excess energy instead of money back.
Community Solar: Illinois has a robust community solar program, and the Climate and Equitable Jobs Act (CEJA) has allocated significant funding to support its growth.
Building-Integrated PV: Illinois's solar model ordinance includes provisions for building-integrated PV (solar panels integrated into roofing, awnings, or walls).

Gas/Oil

The state of Illinois has specific laws governing construction practices related to the use of oil and gas heating systems. Illinois requires building contractors to comply with the Illinois Energy Conservation Code, which is based on the International Energy Conservation Code (IECC) and ASHRAE standards. Regulations also exist for the safe installation, operation, and maintenance of oil and gas heating equipment, as well as for oil and gas exploration and production activities.

Some of the highlights of these laws include:

Statewide Code: Illinois uses the latest version (2018) of the IECC and ASHRAE Standards 90.1-2013.
Renovations and Alterations: Most renovations, alterations, and additions to existing buildings must also adhere to the energy code.
Local Authority: Local governments can adopt stricter energy conservation standards for commercial buildings, but they are limited to the state code for residential buildings.
Fuel-Burning Appliances: The Illinois Mechanical Code includes requirements for fuel-burning appliances, including their design for the correct fuel type and altitude, and prohibits unauthorized conversions.
Portable Kerosene Heaters: The Space Heating Safety Act regulates the sale and use of portable kerosene heaters, including restrictions on their use in multi-family dwellings.
Heat Ordinance: The Chicago Heat Ordinance requires landlords to provide heat during designated cold weather months in buildings where tenants do not control their own heating.
Gasoline Storage Act: The Gasoline Storage Act and related regulations address the financial responsibility of owners and operators of underground storage tanks, including those storing heating oil.

Electricity

Illinois has a complete set of laws and regulations regarding electrical work during construction, encompassing energy conservation, safety, prevailing wage, and specific requirements for electric transmission systems. Illinois' Energy Efficiency Building Act requires all residential and commercial construction to comply with the statewide energy conservation code.

Some key aspects of this law include:

Illinois Energy Conservation Code: This code mandates energy-efficient construction practices for new and renovated buildings, requiring compliance with the International Energy Conservation Code (IECC) and the ASHRAE Standard 90.1.
Electric Transmission Systems Construction Standards Act: This act mandates prevailing wage for construction, installation, maintenance, and repair of electric transmission systems, as well as employee training and competence standards.
Illinois Municipal Code: This code allows municipalities to establish electrical inspection departments and require permits for electrical work, ensuring compliance with local standards.
Home Repair and Remodeling Act: This act provides remedies and penalties for violations related to electrical work, including those involving the Consumer Fraud and Deceptive Business Practices Act.
Illinois Stretch Energy Code: This code, when adopted by a municipality, can replace the Illinois Energy Conservation Code for local building projects.
Installation of Wiring: Electrical wiring must be adequately protected from physical damage, and raceways, cables, and boxes must be securely fastened in place.
Material and Construction: Wiring materials and components must be suitable for the environment in which they are installed.
Prevailing Wage: Construction contractors working on electric transmission lines are required to pay their employees prevailing wages and benefits.
Training: Employees working on electric transmission systems must demonstrate competence through accredited apprenticeship programs or relevant experience.
Energy Conservation: Renovations, alterations, additions, and repairs to existing buildings must comply with the Energy Conservation Code to the extent that the building's energy use is not increased.
State-Funded Buildings: State-funded buildings must comply with LEED or equivalent certification standards.

Government Housing Programs

Illinois offers a wide variety of government-funded housing programs to help low-income individuals and families, the elderly, and those with disabilities find secure, safe, and affordable housing. These programs include rental assistance, emergency and transitional housing, and support for those with developmental disabilities.

Some of the programs offered are:

Housing Choice Voucher Program (Section 8): The Illinois Section 8 program provides rental assistance to help low-income families, the elderly, and people with disabilities afford decent, safe, and sanitary housing.
Tenant-Based Rental Assistance (TBRA): The TBRA program assists individuals and families experiencing homelessness to obtain housing with support services and financial assistance.
Emergency and Transitional Housing Program: This program offers immediate shelter and comprehensive support services to individuals and families experiencing homelessness.
Supportive Housing Program: This program provides a combination of housing and supportive services to help formerly homeless individuals and families maintain their housing stability.
Rapid Re-Housing (RRH): The RRH provides temporary rental assistance and support services to households experiencing homelessness.
Section 811 Project-Based Rental Assistance Program (PRA): The PRA program helps individuals with disabilities live independently in affordable housing that is linked to essential services.
Home Weatherization Assistance Program: This program helps income-eligible households reduce their energy costs by improving the energy efficiency of their homes.
Public Housing Program: This program provides decent and safe rental housing for eligible low-income families, the elderly, and people with disabilities.
Community Services Block Grant Program (CSBG): The CSBG program offers various services, including rental assistance, through Community Action Agencies.

Property Tax Credits and Incentives

Illinois, like most states, offers specific individuals breaks on their property taxes. These tax credits, exemptions, and incentives reduce the property owner's tax liability. Some of the programs offered in Illinois include:

General Homestead Exemption (GHE): This exemption is available to homeowners who reside in their primary residence, and it has a maximum value of $10,000.
Long-Time Occupant Homestead Exemption (LOHE): This exemption is available to homeowners with an annual income of $100,000 or less, provided they have occupied the home for at least 10 years. The exemption limits the increase on the assessed value of the house, which is tied to the tax rate. The maximum limit is 10%.
Homestead Exemption for People with Disabilities: This is a $2,000 deduction for people who own their own homes and have a disability.
Veterans with Disabilities Exemption for Specially Adapted Housing: This exemption can result in a reduction of up to $100,000 in the assessed value of a specially adapted house owned by a veteran. The veteran's spouse can also claim this deduction after the veteran's death, provided they continue to reside in the home.

Local Level (Permits and Regulations)

Whereas the state of Illinois provides a statewide framework for standardized building codes and rules, each individual county or municipality adopts these codes and enforces them through permits and inspections.

Building-Friendly Areas of Illinois

In Illinois, areas with Planned Development (PD) districts and Transitional Core (TC) districts are often easier to build in due to greater flexibility in zoning and design regulations. Additionally, areas undergoing rezoning for mixed-use development may also present easier building conditions. Other conditions that make building easier include zoning laws, available land, and the local economic environment. Some areas where it's easier to build new homes in Illinois include:

Jacksonville
Mattoon
Pittsfield
Danville
Pope County
Johnson County
Wonder Lake
Union
Vole
Deer Grove
Campton Hills

Where to Obtain Illinois Building Permits

Most construction and renovation projects in Illinois require permits. You can obtain one through the local county, town, or municipal building department. Most offer online options through their websites, but you can also typically apply in person, by mail, or by phone.

The general process is as follows:

Download or pick up an application.
Complete the application.
Submit the application along with supporting documents (plans, blueprints, material lists, contractor details, etc.).
Pay the application fee.
The building department will review your application.
Once approved, you can schedule your first inspection.

Some links to other building departments in Illinois include:

During the permitting process, the building inspector must inspect the work being performed. They may do this before, during, and after the project to ensure the work complies with all local building codes, thereby keeping people safe. Depending on the city or county's rules, you may schedule your inspections through the online portal, by phone, or by email.

Zoning Laws

Zoning laws in Illinois are primarily established and enforced by local municipalities and counties, which divide the land into districts with specific classifications and regulations. These regulations dictate permitted land uses, building requirements, and other development standards.

Some of the highlights of Illinois zoning laws include:

Illinois Zoning Enabling Act: This act grants the municipalities and counties the authority to create and implement zoning ordinances.
Zoning Districts: Zoning ordinances divide land into various districts (e.g., residential, commercial, industrial).
Regulations: Each zoning district has specific rules regarding permitted land uses, building heights, setbacks, and other development standards.
Purpose: The purpose of zoning laws is to promote controlled growth, protect community standards, and ensure the appropriate development of land within a municipality.
Variances and Special Use Permits: Property owners may seek variances (exceptions to zoning regulations) or special use permits (for uses not typically allowed) to accommodate specific development needs.
Challenging Zoning Decisions: Illinois law permits challenging zoning decisions through legal means, such as appeals to the courts or pursuing variances or special-use permits.

Some of the zoning designations used for land throughout Illinois include:

Residential: These districts are designated for housing and may range from single-family homes to multi-family dwellings. Examples include:

R-1 Single-Family Residential: Typically for low-density, single-family detached homes.
R-2 Two-Family Residential: May allow for two-family dwellings, often in areas with slightly higher density than R-1.
R-3 Single-Family Residential: Intended for moderate-density single-family neighborhoods, sometimes allowing limited non-residential uses.
R-5 Multi-Family Residential: Designed for higher density, multi-family dwellings like townhouses and apartment buildings.

Commercial: These districts are home to a variety of retail, business, and service establishments. Examples include:

B-1 Neighborhood Business: For basic trade and personal services, often serving adjacent residential areas.
B-2 Commercial: May accommodate a wide range of commercial uses, including highway-oriented establishments.
B-3 General Business and Wholesale: Provides areas for a variety of services, wholesale establishments, and other business uses.

Industrial: These districts are designated for manufacturing, warehousing, and other industrial activities. Examples include:

I-1 Light Industrial: Intended for industrial and office uses with minimal adverse impacts, such as manufacturing, wholesaling, and office activities that can be operated cleanly and quietly.
Industrial: Suitable for small- to large-scale industries, with regulations in place to protect adjacent properties.

Agricultural: These districts are intended to support agricultural uses (farming) and related activities.
Special Districts: Certain areas may have special zoning designations for unique uses, such as airports, universities, or areas designated for historic preservation.
Overlay Districts: These districts impose additional requirements on properties within a specific area, in addition to their base zoning district (e.g., an airport noise impact overlay district).