The Springfield Enterprise Zone was established to encourage job creation and capital investment in areas of economic distress and to promote neighborhood revitalization in targeted areas.  Springfield Enterprise Zone benefits include Sales Tax Deduction on all building materials and Property Tax Abatements. 

The Enterprise Zone Sales Tax Exemption on building materials allows materials to be purchased within the state of Illinois free of city and state sales tax.  A Sales Tax Exemption form must be obtained in order to receive this benefit.  To obtain a Sales Tax Exemption form:

1. Apply for and receive a building permit report from the Office of Building and Zoning located in the Municipal Building located at 300 S. 7^th Street, Room 304.

2. Bring the building permit to the Office of Planning & Economic Development located at 231 S. 6^th Street.

3. Obtain the sales tax exemption form signed by the local Enterprise Zone administrator.

4. Make copies of the sales tax exemption for and provide them to all retailers from whom you are purchasing materials.  The Retailer must keep the form on file as directed by the Illinois Department of Revenue.

   The Enterprise Zone Property Tax Abatement is eligible to qualifying projects that make improvements to the property that result in an increased assessed value over $25,000.  The City’s portion of the property taxes may be abated on a sliding scale.  (Properties also located in a TIF district are exempt from the Property Tax Abatement benefit.)

   Property Tax Abatements have been separated in to three inducement categories based on project type and project size. 

   Targeted Inducement

   The Targeted Inducement provides 100% property tax abatement on the city portion of the property tax for five years.  The projects eligible for the Targeted Inducement are:

   • Large businesses with Capitol Investments of $10 million or more

   • Businesses that create more than 100 new jobs

   • Business that falls within the targeted industry classifications, including manufacturing

   • Healthcare, including outpatient care centers, medical and diagnostic labs, and general medical and surgical hospitals.

   • Professional, Scientific, and Technical Services including computer programming services, computer system design services, and research and development.

     General Inducement

     The General Inducement encompasses all other projects that do not fall within the Targeted Inducement.  The property tax abatement will remain on a sliding scale of 100% the first year, 75 % the second year, and 50% the third year of the city’s portion of the property tax.  Eligible projects include:

      

   • Commercial Projects

   • Single family and multi family residential projects

   • All projects located within the zone not meeting “Targeted Inducement” criteria

   The Treatment Area Inducement

   Provides benefits to projects located in the HUD treatment area.  Theses 14 census tracts within the city have been identified as areas with greater than 50% concentrations of low and moderate income.    Projects that are located within the 14 census tracts and have over $25,000 in increased assessed value are eligible for 100% of the city’s portion of the property tax for five years. 

   All eligible projects will receive a project information form by the Office of Planning and Economic Development after a building permit has been issued.  This form must be returned to the Office of Planning and Economic Development by the date stated in order to qualify for the property tax abatement.  This form provides the city and state with project information and is used to track development in all enterprise zones.  

   Other attractive incentives to building or rehabilitating within an Enterprise Zone include State Tax incentives such as Investment Tax Credits, Machinery and Equipment Sales Tax Exemptions and Utility Tax Exemptions.

   While there is opportunity within the existing Enterprise Zone boundaries for new projects, the Enterprise Zone can also be extended for large projects meeting certain criteria. Projects that involve significant investments, create substantial job opportunities, or locate in a targeted area may qualify for the addition of territory to the Enterprise Zone.

   For more information on Enterprise Zones, please call Teri Whitfield at 217-789-2377 ext. 476 or e-mail at teri.whitfield@cwlp.com.