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1.4Million
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FINANCING PROGRAMS Illinois Tax Increment Finance Southwest Illinois Development Authority and Illinois Finance Authority River Edge Redevelopment Zone Illinois Finance Authority Illinois Tax Increment Finance Common Name: TIF Statutory Citation: 65 ILCS 5/11-74.4-3 Type of Benefits: Illinois law allows units of local governments the ability to designate redevelopment areas in need of development or redevelopment. Often, improving these areas requires a public investment to reduce the extra cost and risk that private development faces in such areas. The public wishes to see this development occur, but without increased taxes or the reduction of other necessary services and projects that would be required to pay for the public investments that development and redevelopment usually require. Tax increment financing (“TIF”) is one tool used to meet this economic development challenge. With this tool, financially strapped local governments can make the improvements, like new roads or sewers, and provide incentives to attract new business or help existing business stay and expand. These specially designated areas capture new investment tax growth as a way to spur economic growth within the tax increment district in hope of encouraging new economic development and jobs. Description of Benefits: TIF is simple in concept. It calls for local taxing bodies to make a joint investment in the development or redevelopment of a designated area, with the intent that any short term gains be reinvested and leveraged so that all the taxing bodies will receive future financial gains. When a TIF redevelopment project area is designated, the value of the property in the area is established as the “base” amount. The property taxes paid on this base amount continue to go to the various taxing bodies. The growth in property values generates tax increment, which is collected in a special fund and allows additional investments in the TIF project area. This reinvestment generates additional growth in property value, which results in even more revenue growth for reinvestment. In this way a TIF project creates a vital cycle, increasing development and redevelopment in the area, such that when the TIF project ends — and Illinois law allows a TIF project to exist for a period of up to 23 years — all of the taxing bodies benefit from the new growth. Eligible Business Types: All. Links: Southwest Illinois Development Authority and Illinois Finance Authority Common Name: SWIDA Type of Benefits: Financing through the sale of both taxable and tax-exempt bonds. Description of Benefits: SWIDA is a special-purpose governmental unit created and designed to catalyze economic development through financing, technical assistance and development. Eligible Business Types: BONDS – qualified local government units. GAP FINANCING AND MICRO LOANS – small companies with various potential. Links: River Edge Redevelopment Zone Common Name: RERZ Statutory Citation: Illinois Income Tax Act 35 ILCS 5/201, as amended; Illinois Income Tax Act 35 ILCS 5/201 (N), as amended; Illinois Income Tax Act 35 ILCS 5/203 Type of Benefits: Investment Tax Credits; Remediation Tax Credits; Jobs Tax Credit; Financial Institutions Tax Deduction. Description of Benefits: The purpose of the River Edge Redevelopment Program is to revive and redevelop environmentally challenged properties adjacent to rivers in Illinois. The River Edge Redevelopment Zone Act authorizes DCEO to designate zones in three cities – Aurora, East St. Louis and Rockford. Allowed Uses of Benefits: A River Edge Redevelopment Zone is a specific area designated by the State of Illinois in cooperation with a local government to safely revive and redevelop environmentally-challenged properties that will stimulate economic revitalization and create jobs in Illinois. Eligible Business Types: All. Links: Illinois Finance Authority Common Name: IFA Type of Benefits: Financing through both taxable and tax-exempt bonds, making loans, and investing capital. Description of Benefits: IFA is primarily engaged in issuing taxable and tax-exempt bonds, making loans and investing capital for businesses, non-profit corporations, agriculture and local government units statewide. IFA finances about $3 billion each year, helping generate economic growth and job creation. Financing is done through Industrial Revenue Bonds, Participation Loan Program, Rural Development Loan Program, and State Guarantee Program for Agri-Industries. Links: |
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