Lincoln/Logan County Enterprise Zone
Incentives for Capital Improvements
Enterprise Zones are an important tool for stimulating economic growth and community revitalization. Incentives are provided to attract business start-ups and expansions, create new jobs, encourage revitalization of neighborhoods, and expand the tax base. This report provides a brief introduction to the incentives offered in the Lincoln/Logan County Enterprise Zone
The Lincoln/Logan County Enterprise Zone expires June 30, 2017.
Eligible Properties: Incentives are limited to commercial and industrial properties located within the Zone. Residential properties including apartments are not eligible for the incentives. Remodeling and rehabilitating existing buildings as well as new construction are eligible.
Enterprise Zone Area: The Enterprise Zone area changes as developments occur and new sites are added. To obtain information about a specific property or for a map of the Zone, contact the Zone Administrator listed at the end of this report.
Local Incentives:
Property Tax Abatement: A full abatement (100%) of the increased property tax assessment for approved projects is granted for five years, and 50% of the increased assessment is abated for the subsequent five years. Abatements only apply to taxes collected for the City of Lincoln, Logan County, Lincoln High School District, Lincoln Elementary School District, and Lincoln Park District.
Building Permit Fee Exemption: Normal charges for building permits are waived in the Enterprise Zone. Permits are still required.
Sales Tax Exemption: An exemption of all sales tax is permitted on building materials used for remodeling, rehabilitation or new construction. Materials must be permanently affixed to the property. To obtain the exemption, a City of Lincoln or a Logan County building permit stamped “Enterprise Zone” must be provided to the retailer.
State Incentives:
Investment Tax Credit: A state investment tax credit of 0.5% is allowed a taxpayer who invests in qualified property in the Zone. Qualified property includes depreciable machinery, equipment, and buildings. The credit may be carried forward for up to five years. This credit is in addition to the regular 0.5% investment tax credit which is available throughout the state, and the credit for increased employment over the previous year of up to 0.5%.
Manufacturing Machinery & Equipment/Pollution Control Facilities Sales Tax Exemption: A State sales tax exemption is granted on purchases of tangible personal property to be used in the manufacturing or assembly process or in the operation of a pollution control facility within the Zone. Eligibility is based on a business making an investment of at least $5 million that creates at least 200 full-time-equivalent jobs or a business investing at least $440 million in the Zone which causes the retention of at least 90% of the jobs existing on the date it is certified to receive the exemption.
Jobs Tax Credit: A business is allowed a $500 credit on Illinois income taxes for each job created in the Zone for which a certified eligible worker is hired. The credit may be carried forward for up to five years. A minimum of five workers must be hired to quality for the credit.
Utility Tax Exemption: A State utility tax exemption on gas, electricity, and the Illinois Commerce Commission’s administrative charge is available to businesses located in the Zone. Eligible businesses must invest at least $5 million that creates at least 200 full-time-equivalent jobs in Illinois or an investment of $420 million that retains at least 1,000 full-time-equivalent jobs in Illinois. The majority of the jobs created must be located in the Zone where the investment occurs.
Divided Income Deduction: Individuals, corporations, trusts, and estates are not taxed on dividend income from corporations doing substantially all (more than 95%) of their business in the Zone.
Interest Deduction: Financial institutions are not taxed on the interest received from loans for development within the Zone.
For More Information:
Enterprise Zone Administrator: For information about the Enterprise Zone boundaries, specific properties of interest, and other matters, contact:
Phil Mahler, Director
Logan County Regional Planning Commission
529 South McLean Street
Lincoln, IL 62656
Phone: 217-732-8835
PlanZone@co.logan.il.us
Economic Development Information: The Development Partnership tracks available industrial and commercial buildings and sites, labor force data and other economic statistics. Technical assistance is provided at no cost for Logan County businesses and prospects.
Rob Orr, Executive Director
Lincoln & Logan County Development Partnership
1555 5th Street
Lincoln, IL 62656
Phone: 217.732.8739
For assistance in hiring, contact:
Illinois Employment and Training Center
120 S. McLean
Lincoln, Illinois 62656
Phone: 217.732.5441