These are potential tax incentive programs that could be utilized by a business expanding or relocating in Madison County. Businesses wishing to pursue any of the following incentives or programs should contact Madison County Community Development's Economic Development staff at 618-692-8940.
Riverbend Enterprise Zone
The Riverbend Enterprise Zone offers outstanding investment opportunities for companies seeking a full range of location or expansion incentives. Start-up costs and long-term operating costs can be significantly reduced through a combination of state and local tax incentives, low-cost financing, and employee training programs. It is simple to take advantage of zone incentives and a network of development professionals stand ready to assist. Portions of the communities of Alton, Bethalto, East Alton, Hartford, Roxana, South Roxana and Wood River invite you to seize the opportunity offered by the Riverbend Enterprise Zone.
- Property tax abatement on increased assessed valuation due to new construction or renovation
- Sales tax exemption on building materials
- 1% state investment tax credit on machinery, equipment and buildings
- 0.5% investment tax credit for firms that increase their employment in Illinois by 1% over the preceding year
- Machinery and equipment exemption
- Utility tax exemption
- Low interest business financing program
- Employment training assistance programs
A fact sheet on the Riverbend Enterprise Zone can be downloaded here.
Additional information can be found on Madison County's website at https://goo.gl/phaBFP.
Click here for a map of the Riverbend Enterprise Zone.
Foreign Trade Zone Access
Foreign Trade Zone #31 is located at America's Central Port (http://www.americascentralport.com) and is a mainland port. Sub-zones can be established in the River Bend region.
The Riverbend region offers a wide range of economic development programs to help your business cost-effectively retain, locate, or expand its operations. The economic development programs are designed to provide assistance in the form of business financing, employee recruitment and training, infrastructure improvement, tax incentives, and technology and business development.
A network of experienced economic development specialists is ready to serve you in developing comprehensive incentive packages that are appropriate for your business's needs. Conducting business in the Riverbend is enhanced by a variety of tax incentives that are designed to encourage economic growth by impacting a company's bottom line.
Economic Development for a Growing Economy (EDGE) Tax Credit
Firms that create at least 25 jobs and invest at least $5 million in Illinois may be eligible to be considered for an EDGE tax credit.
Credit for Investment in Mining, Manufacturing or Retailing
0.5 percent, plus an additional 0.5 percent if employment increases more than 1 percent.
Enterprise Zone Investment Tax Credit
An additional 0.5 percent for making an eligible investment plus a $500 credit for each hiring of an economically disadvantaged person.
Enterprise Zone Credit - Deductible dividends and interest on loans
Dividend income from Enterprise Zone companies is tax-free, as are earnings on loans made to those companies.
Enterprise Zone Local Property Tax Abatement
Taxing bodies within Illinois Enterprise Zones may abate property taxes without a dollar limit for the life of the zone (up to 20 years from the time of the zone's creation) for any project in the zone.
Illinois High-Impact Business Program
This program provides an array of benefits to businesses that intend to invest at least $12 million in qualified property and create 500 jobs, or intend to invest $30 million in qualified property and retain at least 1,500 jobs. Specific benefits include investment tax credits, a state sales tax exemption on building materials, an exemption from state taxes on utilities, and an expanded state sales tax exception on purchases of personal property used or consumed in the manufacturing or assembly process or in the operation of a pollution control facility. Businesses located in an Enterprise Zone are not eligible for this program.
Tax Increment Financing Districts (TIFs) for Retail or Industry
Can be based on the local sales tax increment or the property tax increment that can be used to retire debt. These are locally administered programs available in areas designated as TIF districts. Through the use of tax increment incentives, a city has the ability to write-down costs of real estate acquisitions and improvements. Future additional property taxes generated by the improved property are used to finance the write-downs. These write-downs may be applied to various costs including, but not limited to, land acquisition, public site improvements, infrastructure, site preparation costs, etc. The city then obtains loan money for the firm which then pays back the debt from its property taxes, or directly pays for improvements from the proceeds of bonds sold in anticipation of future tax increment revenues.
Pollution Control Assessments
Pollution controls are assessed at salvage value.
Exclusion from Combined Returns
Corporations with unique apportionment formulas or more than 80 percent of their payroll and property outside the U.S. are not included in combined returns.
Manufacturer's Purchase Credits
Illinois manufacturers can receive Manufacturer's Purchase Credits equal to 3.125% of the purchase price of machinery and equipment used in manufacturing. Credits can be applied to sales tax liability owed on production-related taxable goods.
Sales Tax Exemptions
- Purchases of manufacturing machinery.
- Purchases of farm machinery.
- Water and sewer utilities are not taxed by the state.
- Enterprise Zone exemptions:
- Electricity, natural gas, and telecommunications excise tax exemptions. (Certain criteria apply)
- Building materials bought in and used in an Illinois enterprise zone. (Certain criteria apply)
- Tangible personal property consumed in the manufacturing process. (Certain criteria apply)
A list of Business Incentives offered by the state can be found on the state of Illinois' website. Please click http://business.illinois.gov/assistance.cfm.
For additional information, contact the Illinois Department of Commerce & Economic Opportunity (DCEO). Our area representative, Edie Koch, can be reached at 618-346-3816.