Financial incentives in Champaign County include tax abatement, grants, subsidized loans and private subsidies that can make a competitive difference in your site selection.
Tax Incentives and Value Added Resources
Located in a Champaign County, Enterprise Zone employers locating here are eligible for property tax abatement, a sales tax exemption on building materials for real improvements, an exemption on machinery, an investment tax credit of .05% in addition to the .05% already in place, State utility tax abatement with creation of > 200 jobs and jobs tax credit of $500 per job created (min 5). The cities of Champaign, Urbana, and the Village of Rantoul each administer a program. Use the following links for more information. Champaign, Urbana, Rantoul
Foreign Trade Zone
FTZ 114 (Central Illinois) is a multi-modal zone – rail, air, river, road – serving the West Central, Central and East Central Illinois Region, providing over 2 million square feet of warehousing and distribution space available for General Purpose Zones usage and four Sub-zone sites.
Employer Training Incentive Program (ETIP)
Employer Training Incentive Program is a state incentive to encourage employer investment in workforce training. It is a cash reimbursement of up to 50% of employer cost for training equipment and instruction. Illinois Department of Commerce and Economic Opportunity is the program management.
Economic Development for the Growing Economy is a tax abatement through the State Department of Commerce and Economic Opportunity (DCEO). The incentive provides a corporate income tax credit equal to jobs created times the average wage times the personal income tax rate times ten years. Currently, it looks something like this for 2013-2023: =(100*$35,000*0.05*2) + (100*$35,000*0.0375*8) since there is a sunset on the personal income tax rate of 5% at 2015.
Health Care Incentive
The Health Care Incentive provides a break on health coverage expenses of 30-40% to new employers in the county that were not previously Health Alliance members. The incentive can look like this for 100 jobs created at the start of three years: 100*$3,500*3. Health Alliance headquarters is in Urbana, Illinois.
Tax Increment Financing (TIF)
TIF is a tool used by municipalities to encourage development in areas where replacement or rehabilitation is desired. It effectively uses a portion of the future property tax value to finance/execute a phase(s) of a project thereby decreasing costs for the developer. As an example, a local municipality offers a Redevelopment Incentive Program (RIP) grant in some neighborhoods.
City of Champaign Industrial Development Incentive Program
The City of Champaign Industrial Development Incentive Program is available at a rate of $1,500 per job created in select industrial areas and at a rate of $1,000 per job created in other industrial areas for a maximum of 20 jobs up to a maximum of $150,000 or $100,000 respectively. New employers locating in Apollo subdivision apply at the higher rate. This is only available within Champaign City limits.
Ameren Act on Energy Grant
This is a private sector grant funded as an incentive for businesses and individuals to install more energy efficient lighting, HVAC and machinery. The max award is $600,000 and the program is in place at least until December 2011. Pre-approval is recommended for large projects. The award is on a reimbursement basis, pre-approval is getting a commitment from the grant program before materials are purchased. Applications can be found online at www.actonenergy.com/.
Illinois Entrepreneurial Center Network Grant (iECN)
The iECN grant is awarded to technology start up companies. Money is granted in amounts up to $5000 to assist with the costs associated with creating a business and patent, mostly legal and accounting.
Illinois Challenge Grant Program (ICGP)
The ICGP grant is funded by the Illinois Department of Commerce and Economic Opportunity and Administred by the Office of Technology Management at the University of Illinois. The grant is an assist for start-up companies to use professional grant writing consultant services for SBIR and STTR applications.
Lemelson Illinois Student Prize
An annual prize awarded to an undergraduate or granduate student who demonstrates the technological advancement of a product or process. Please visit the Technology Entrepreneur Center (TEC) web site or follow the above link for more information.
Cozad New Venture Competition
A business plan competition administered by the Technology Entrepreneur Center (TEC) where the grand prize goes to the “Most Fundable Venture”. The competition keeps innovation in line for business success by awarding the winning team a prototype stipend and mentoring from IllinoisVENTURES.
DCEO Solar Energy Rebate Program
DCEO awards up to 30% of eligible system costs up to $10,000 for the purchase and installation of pv or solar thermal energy systems under $50,000 in total cost. Please see the DCEO web site for current program funding status.
Solar Energy Incentive Program
This program is funded through the RERP and is to support the implementation of solar thermal and solar pv technologies in Illinois.
Renewable Energy Business Development Grant Program
This program is administered by DCEO through the Renewable Energy Resources Program (RERP). Up to $1,000,000 grant is focused on projects increasing the utilization of alternative energy technologies in Illinois. Grant application deadline is May 1.
The Champaign County Regional Planning Commission (RPC) manages three unconventional lending sources that can help lower the cost of financing for your up front business expenses. These include the CDC, CDAP and CDBG. Please visit the RPC web site for more information.
The Eastern Illinois Economic Development Authority (EIEDA) offers bond financing for multiple business types up to $250 million. The issuance carries a special tax exemption for the purchaser of the bond thereby decreasing costs to issuer. Issuances over $1 million are necessary due to the nature of the costs.
The Illinois Finance Authority (IFA) is another option for Industrial Revenue Bonds.
SBA Small Business Loans: The American Recovery and Reinvestment Act has funded this program to provide more loans with reduced fees and Microloans.