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.
For more information on the Springfield TIF District click on http://springfield.il.us/Businesses/GrantLoan.aspx
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:
The Springfield & Sangamon County Enterprise Zone Program is administered by the City of Springfield. For more information contact the Office of Planning & Economic Development at 217-789-2377.
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.
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 at https://www.illinois.gov/dceo/ExpandRelocate/Incentives/Pages/EDGE.aspx
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.
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 at https://www.illinois.gov/dceo/ExpandRelocate/Incentives/Pages/HighImpactBusinessProgram.aspx
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
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.