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Illinois offers several economic development incentives to businesses. Businesses should consult with their commercial real estate broker to see if they may qualify for any of these programs. Below are brief descriptions of some programs to consider.
The Economic Development for a Growing Economy (EDGE) incentive program encourages 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 Large Business Development Program LBDP) is for companies undertaking a major expansion or relocation. Funds may be used by large businesses for the purchase of land or buildings, building construction or renovation expenses, and certain types of machinery and equipment investments.
The Community Development Assistance Program for Economic Development (CDAP-ED) provides federal grants to local government for economic development. Local governments distribute funds as loans to businesses growing or moving to their community. Funds may be used for machinery and equipment, working capital, and building construction and renovation.
The Manufacturing Modernization Loan Program targets existing Illinois manufacturing companies with less than 500 full-time workers that are retooling, upgrading their equipment, or expanding their business. Eligible projects include the acquisition and development of land, building purchases and capital investments, and investments in new and used equipment.
The Enterprise Zone Program is designed to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state. The program offers state and local tax incentives, regulatory relief and improved governmental services.
The High Impact Business (HIB) program is designed to encourage large-scale economic development activities by providing tax incentives to companies proposing substantial, job-creating capital investments. The project must involve at least $12 million in investments and create at least 500 full-time jobs, or involve an investment of at least $30 million and the retention of 1500 full-time jobs. The investment must take place at a designated location in Illinois outside of an Enterprise Zone.
Tax Increment Financing Districts are a common economic development tool used by local governments. Local governments dedicate some tax revenues generated within the TIF district toward subsidizing development.
Businesses should consult with their real estate adviser to see if they qualify for federal, state, or local programs. The programs described briefly in this article are just a few of the many opportunities to lower costs.
At Golden Group Real Estate, we specialize in tenant representation real estate services for office space users in the Chicago area, helping local business owners find office space and negotiate lease and purchase agreements. We never represent landlords, so we are prepared to negotiate aggressively on behalf of our tenant clients.
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