- Sales Tax Deduction - All building materials purchased and physically incorporated into the new construction or rehabilitation of a
building located within the City’s Enterprise Zone are exempt from all sales tax provided that a building permit is required.
- Property Tax Abatement - New construction or rehabilitation of property located in the Enterprise Zone may qualify
for a property tax abatement of the City portion of real estate taxes based on the increase in assessed value of property due to the
improvements. Property located in a Tax Increment Finance District is not eligible for property tax abatement according to state guidelines.
- General Inducement Criteria- All projects that result in over $25,000 in increased assessed value and fall within one of the following categories:
- Commercial and Industrial projects that do not meet the Targeted Inducement Criteria
- Single Family and Multi-Family residential projects - The General Inducement for these projects
are abated on a sliding scale of 100% the first year, 75% the second year and 50% the third year
- Area Impact Inducement Criteria: All projects that result in over $25,000 in increased assessed value and
are located within one of the City’s Community Development Block Grant Treatment Areas and Enterprise Zone
will receive a 100% abatement on the City portion of the increase valuation dependent upon the timing of
the final assessment but no later than December 31, 2030 or until termination of the zone.
- Targeted Inducement Criteria- The targeted inducement for specified projects will be 100% abatement of the
city’s portion of the taxes dependent upon the timing of the final assessment but no later than
December 31, 2030 or until termination of the zone. Targeted Inducement Eligible Criteria:
- Industrial or Manufacturing Projects
- Large Business Projects
- Healthcare
- Professional, Scientific, and Technical Services
- Machinery & Equipment Tax Exemption - The “Illinois Retailer Occupational Tax Act” authorizes eligible
businesses a state sales tax exemption for tangible personal property to be used or consumed within an enterprise
zone in the process of manufacturing or assembly of tangible personal property for wholesale or retail sale or lease.
- Utility Tax Exemption - A state utility tax exemption on gas, electricity and the Illinois
Commerce Commission’s administrative charge is available to businesses in enterprise zones.
Eligible businesses must make an investment of at least $5 million and create a minimum of 200
full time equivalent jobs in Illinois, or an investment of $20 million that retains
at least 1,000 full time equivalent jobs in Illinois.
- Investment Tax Credit - A state investment tax credit of 0.5 percent is allowed
a taxpayer who invests in qualified property in an enterprise zone.
For more information about our Enterprise Zone Incentives, please contact the Office of Planning & Economic Development below.
Email Here.
For a map of the Springfield-Sangamon County Enterprise Zone, click on the box below.
Click Here.
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