The City of Springfield, Illinois, recognizes the immense contributions of its small business community to the health and vibrancy of the city. In an effort to assist local economic development efforts, the City has several programs available to incentivize development. These incentives are, however, tied to specific geographies or types of buildings.
Below is a description of each development incentive and how they could potentially be deployed by a small business.
Tax Increment Finance
Tax Increment Financing is a tool to use future gains in property taxes to finance redevelopment and community improvement projects. The City of Springfield has designated nine 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.
TIF funds support many improvements, including:
- The administration of a TIF redevelopment project.
- Property acquisition.
- Rehabilitation or renovation of existing public or private buildings.
- Construction of public works or improvements.
- Studies, surveys and plans.
- Marketing sites within the TIF.
- Professional services, such as architectural, engineering, legal and financial planning.
- Demolition and site preparation
Please keep in mind that TIF funds are received as reimbursements and any work on a proposed project cannot begin until after final approval by City Council.
Once a project has been proposed to the Office of Planning & Economic Development, the proposal is presented to the Economic Development Commission, which meets on the second Tuesday of every month. If the proposal receives an approval recommendation, it goes before City Council for final passage.
A full list of Springfield TIF districts can be found here: http://springfield.il.us/Businesses/TIF.aspx. For more information about our Tax Increment Finance incentives, please contact Abby Powell at email@example.com or by phone at 217-789-2377.
The City of Springfield, Illinois, recognizes the immense contributions of its small business community to the health and vibrancy of the city.
Enterprise Zone is a State-regulated entitlement program for any property owner within the boundary of an Enterprise Zone sub-zone. Our local Zone is designated as the Springfield-Sangamon County Enterprise Zone and currently covers approximately six square miles of Sangamon County, with a vast amount of the sub-zones located within the corporate limits of the City of Springfield. With this program, there are two categories of benefits or incentives: City and State-level. City-level benefits include full sales tax abatement (8.75%) on eligible building materials purchased in Illinois that are physically incorporated into the building and a full abatement of the City portion of the property’s tax bill if the project results in over $25,000 of increased assessed value. State benefits include an investment tax credit, a machinery & equipment tax exemption, and a utility tax exemption.
Additional information about the Springfield-Sangamon County Enterprise Zone can be found here: http://springfield.il.us/Businesses/EnterpriseZone.aspx. For any questions, please contact Jessica Weitzel at firstname.lastname@example.org or by phone at 217-789-2377.
The City of Springfield is invested in maintaining our historic structures not just in downtown, but across the city. To help preserve those buildings, several incentives were developed to help the private sector renovate historic structures.
Buildings undergoing renovations which are designated as historic landmarks or within a designated historic district are potentially eligible for additional assistance under Springfield’s City Code, entirely independent of TIF or EZ. Under this program, any renovations to a historic property not in a TIF district which result in a 25% increase in assessed value would potentially be eligible for a level of City property tax abatement. Additionally, if approved by City Council, the City portion of sales tax spent (2.5%) on building materials can be rebated back to the project owner.
For more information about historic preservation incentives, please visit http://springfield.il.us/Businesses/HistoricPreservation.aspx or reach out to the Office of Planning & Economic Development by phone at 217-789-2377.
Small businesses are encouraged to contact their Office of Planning & Economic Development to see how they can assist with startup and/or expansion plans!