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Tax Assistance

For more information contact: dceo.bizdev@illinois.gov

NAME RECIPIENT USE ELIGIBILITY
EDGE Economic Development For a Growing Economy Tax Credit Program Businesses Tax credits for capital investments and job creation in a competitive environment

Companies with documentation of offers from a competing state and who agree to $5M minimum capital improvements and that create a minimum of 25 new full time jobs.

Smaller companies with 100 or fewer employees, that make $1M minimum capital investment and create at least 5 new full time jobs

Enterprise Zone Program   Provide local tax incentives, regulatory relief and improved governmental services Economically depressed areas of the State
HIB High Impact Business Businesses Encourage large-scale economic development
$12M minimum investment and creation of a minimum of 500 full time jobs, or an investment of $30M and the retention of 1500 full time jobs.
 
Locations must be outside of an Enterprise Zone Certain Coal and Wind Energy projects
Illinois Angel Investment Credit Program Investors Provide working capital to early stage companies  Investments in early stage innovative companies
Illinois Film Services Tax Credit Film Producers Promote job growth and opportunities, promote diversity in hiring
  •  30% of the qualified Illinois Production Spending.
  • 30% credit on Illinois salaries up to $100,000 per worker.
Illinois Historic Preservation Tax Credit Program

Owners of certified historic structures located in Aurora, East St Louis, Elgin, Peoria and Rockford


(River Edge Redevelopment Zone)

Create jobs and revitalize historic communities Certified historic rehabilitations that revitalize historic structures and neighborhoods
Illinois Small Business Jobs Creation Tax Credit Program Small business owners
Not for Profits
Provide tax credits for job creation in small businesses Jobs that pay at least $10/hour or $18,200 annually and position must be sustained for one full year from date of hire
New Markets Development Program Investors in approved funds Encourage development in low income census tracts Qualifying Community Development Entities (CDE’s)
TIF Tax Increment Financing Districts  Local Governments Encourage economic development and job creation  Local government jurisdiction

 

Illinois Angel Investment Credit Program
The purpose of the Angel Investment Program is to attract and encourage the placement of investment dollars into early-stage, innovative companies throughout Illinois.  The investment dollars provide these companies with much needed access to working capital to further their growth and success in our state. The Angel Program is allocated $10 million in tax credits annually, from 2011-2016.  Tax credits are awarded on a first-come, first-served basis.  The Department of Commerce and Economic Opportunity (DCEO) administers the Angel Program.  For more information about the Angel Program click here.    

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.

Enterprise Zone Program
The Illinois Enterprise Zone Program is designed to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state.  This is accomplished through state and local tax incentives, regulatory relief, and improved governmental services.          

Individual Enterprise Zone Maps, May 2013
These maps are provided pursuant to a change in the Illinois Enterprise Zone Act requiring DCEO to "post each copy of the boundaries of an Enterprise Zone that it receives from a Zone Administrator on its official internet website." These PDF maps are intended to satisfy this requirement, but should not be relied upon to determine the official boundaries of any individual enterprise zone. Please contact the appropriate local zone administrator for more information about enterprise zone boundaries, and consult with your own legal counsel prior to relying upon any determination of official enterprise zone boundaries.

High Impact Business (HIB)
The HIB program is designed to encourage large-scale economic development activities, by providing tax incentives (similar to those offered within an enterprise zone) to companies that propose to make a substantial capital investment in operations and will create or retain above average number of jobs. 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.  The program has been expanded to include qualified new electric generating facility, production operations at a new coal mine or, a new or upgraded transmission facility that supports the creation of 150 Illinois coal-mining jobs, or a newly constructed gasification facility as a "Coal/Energy High Impact Businesses". In 2009, the program was further expanded to include wind energy facilities. The designation as a Wind Energy/High Impact Business is contingent on the business constructing a new electric generation facility or expanding an existing wind power facility.  “New wind power facility” means a newly constructed electric generation facility, or a newly constructed expansion of an existing electric generation facility, placed in service on or after July 1, 2009, that generates electricity using wind energy devices.  “New wind energy device” means any device, with a nameplate capacity of at least 0.5 megawatts, that is used in the process of converting kinetic energy from the wind to generate electricity.

Illinois Historic Preservation Tax Credit Program
The Illinois Historic Preservation Tax Credit Program provides a state income-tax credit equal to 25% of a project’s qualified expenditures to owners of certified historic structures located within River Edge Redevelopment Zones (Aurora, East St. Louis, Elgin, Peoria & Rockford) who undertake certified rehabilitations during the taxable year. The substantial rehabilitation investments will create jobs in Illinois, stimulate the economies of River Edge communities, and revitalize historic structures and neighborhoods. An awarded tax credit may not be sold or otherwise transferred to another person or entity. The Illinois Historic Preservation Tax Credit Program runs from January 1, 2012 to December 31, 2016.

Illinois Small Business Jobs Creation Tax Credit Program (external link)
The Illinois Small Business Jobs Creation Tax Credit program provides small business owners and non-profits with an extra boost to grow their business over the next four years. After creating one or more new, full-time positions that meet the eligibility requirements, small businesses can register online to receive a $2,500 per job tax credit. The program officially went live on July 1, 2012 and this is for new jobs created July 1, 2012 to June 30, 2016.

Eligible jobs are those that pay at least $10/hour or $18,200/annually and the position must be sustained for one full year from the hire date. DCEO (Illinois Department of Commerce & Economic Opportunity) has created an extremely user friendly website which allows for an applicant to register both their business and their newly created job(s) from the comfort of their home or office.

New Markets Development Program
The Illinois New Markets Development Program provides supplemental funding for investment entities that have been approved for the Federal New Markets Tax Credit (NMTC) program. This program will support small and developing businesses by making capital funds more easily available and will make Illinois more attractive to possible investors.

The NMTC program provides state and federal tax credits to investors that make investments into approved funds, which will make investments in eligible projects located in low income census tracks throughout Illinois.

The program provides non-refundable tax credits to investors in qualifying Community Development Entities (CDE’s) worth 39% of the equity investment made into the CDE over a 7 year credit allowance period.    

River Edge Redevelopment Zone
The purpose of the River Edge Redevelopment Program is to revive and redevelop environmentally challenged properties adjacent to rivers in Illinois.

The River Edge Redevelopment Zone Act authorizes DCEO to designate zones in five cities – Aurora, East St. Louis, Elgin, Peoria and Rockford.

Tax Increment Financing District (TIF)
Illinois law allows units of local governments the ability to designate areas within their jurisdiction as TIF districts.  These specially designated districts are used by local governments as a way to spur economic growth by dedicating the sales tax revenues and additional property tax revenues generated with in the TIF for improvements within the district with the hope of encouraging new economic development and jobs.