Incentives

 

Local

Tax Increment Financing (TIF)

The City of Springfield has designated eight defined areas of the city as Tax Increment Financing Districts. The TIF districts were established in order to attract private developers to blighted areas that were in need of redevelopment. Tax Increment Financing works by using increased tax revenues of a redevelopment area to fund improvements and incentives for rehabilitation

The following local areas have been designated by the City Council to be TIF Districts and have benefited in varying degrees, from roadway access, demolition of old buildings, streetscape, site preparation, public utilities, lighting, infrastructure rebates, and building rehabilitation.

  •  MacArthur Boulevard Corridor (February 2012) - Infrastructure, site preparation and building rehabilitation assistance will help redevelop this blighted former retail complex location to bring a new grocery store and convenience store/gas station to the MacArthur Boulevard Neighborhood.
  • Dirksen Parkway Commercial TIF (December 2012) - This newest commercial TIF encompasses an area facing blighted and obsolete properties and infrastructure that will benefit from new economic development opportunities.
  • Central Area (Downtown) TIF (December 1981) - The oldest most successful TIF in Springfield provides several rehabilitation and business attraction programs for property owners and local businesses. All Central Area programs are contingent upon available funds and are only available to properties and businesses located within the TIF area.
  • Springfield Far East TIF (February 1995) - Infrastructure assistance was used to encourage redevelopment of housing, retail, and commercial properties.
  • Enos Park- Neighborhood TIF (December 1997) - Rehabilitation assistance within this primarily residential TIF has focused on the redevelopment of single-family and and some light commercial properties.
  • S. H. A. (Madison Park Place) TIF (February 1999) - Infrastructure assistance and site preparation has redeveloped this former public housing development into a viable mixed density residential neighborhood with some commercial development.
  • Northeast TIF (December 2003) - Infrastructure assistance will develop this area into a viable commercial and retail complex.
  • Jefferson Crossing TIF (September 2007) - Infrastructure assistance will develop this area into a viable commercial and retail complex.

For more information on the Springfield TIF District click on http://www.springfield.il.us/index.php/city-departments2/office-of-planning-ecomonic-development/tax-increment-financing

 

Enterprise Zone

The Illinois Enterprise Zone Program offers state and local tax incentives, regulatory relief, and improved governmental services.  Businesses located or expanding in an Illinois enterprise zone may be eligible for the following incentives:

  • An exemption on the retailers’ occupation tax paid on building materials
  • An investment tax credit of .5 percent of qualified property against State Income Tax
  • Local Property Tax Abatement

The Springfield Enterprise Zone Program is administered by the City of Springfield.  For more information contact Teri Whitfield at 217-789-2377 ext. 476 or email at teri.whitfield@cwlp.com.

 

Double Tax Exempt Bonds

The Central Illinois Economic Development Authority (CIEDA) can issue double tax-exempt bonds for Manufacturing, Senior Housing, Not for profits and local government bonds.  Benefits of CIEDA bonds include long term, low interest rate, and flexible terms.  For more information click here.

 

State

Economic Development For a Growing Economy Tax Credit Program (EDGE)

The EDGE program is designed to offer a special tax incentive to encourage companies to locate or expand operations in Illinois when there is active consideration of a competing location in another State. The program can provide tax credits to qualifying companies, equal to the amount of state income taxes withheld from the salaries of employees in the newly created jobs. The non- refundable credits can be used against corporate income taxes to be paid over a period not to exceed 10 years.  To qualify a company must provide documentation that attests to the fact of competition among a competing state, and agree to make an investment of at least $5 million in capital improvements and create a minimum of 25 new full time jobs in Illinois.  For a company with 100 or fewer employees, the company must agree to make a capital investment of $1million and create at least 5 new full time jobs in Illinois.  More information can be found here http://www.illinois.gov/dceo/ExpandRelocate/Incentives/taxassistance/Pages/EDGE.aspx

 

Employer Training Incentive Program (ETIP)

The Employer Training Incentive Program is a cash reimbursement of up to 50% of employer cost for training equipment and instruction. The ETIP is run by the Illinois Department of Commerce and Economic Opportunity.  Companies must be pre-qualified for this program, for information on becoming prequalified please contact John.Glazier@Illinois.gov.

 

High Impact Business (HIB)

Businesses may qualify for: investment tax credits, a state sales tax exemption on building materials, an exemption from state sales tax on utilities, a state sales tax exemption on purchases of personal property used or consumed in the manufacturing process or in the operation of a pollution control facility. The project must involve a minimum of $12 million investment causing the creation of 500 full-time jobs or an investment of $30 million causing the retention of 1500 full-time jobs. The investment must take place at a designated location in Illinois outside of an Enterprise Zone. More information can be found here http://www.illinois.gov/dceo/ExpandRelocate/Incentives/taxassistance/Pages/HIB.aspx

 

Other Illinois Programs

For a full list of programs the Illinois Department of Commerce and Economic Opportunity offers click http://www.illinois.gov/dceo/ExpandRelocate/Incentives/Pages/default.aspx

 

Federal

 

New Market Tax Credit (NMTC)

Springfield has several census tracks that qualify for the federal New Markets Tax Credit Program (NMTC).  The NMTC Program attracts investment capital to qualified census tracks by permitting individual and corporate investors to receive a tax credit against their Federal income tax return in exchange for making equity investments in specialized financial institutions called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years (five percent for each of the first three years, and six percent for each of the remaining four years).  Sites and building located with a NMTC qualified census tracks are identified within the sites and building material.  For more information on utilizing the NMTC please contact Josh Collins at (217) 553-0426 or jcollins@gscc.org.