Incentives
Springfield and
Sangamon County support the expansion and relocation of new and
existing businesses. To entice this growth, a wide variety of
financial programs are available. The Chamber has been proactive in
assembling local taxing districts to draft and pass a local incentive policy that fosters a united regional community
dedicated to providing a profitable place to do business.
Business Loan
Program
The City of
Springfield has devoted a portion of its federal block grant (CDBG)
funds to provide loans to businesses. These loans are required to
meet HUD's national objective of benefiting low to moderate income
persons, which can be accomplished by requiring that a minimum 51%
of jobs created or retained be filled by or made available to
low—moderate income individuals. More information is available by at
the City’s Office of Planning and Economic Development.
Enterprise
Zone
The Springfield
zone is one of nearly a hundred in Illinois and has been extended to
run until 2014. All additions to the zone must meet state
regulations. Further information can be found here. Benefits for the zone include: sales tax deductions,
property tax abatements, investment tax credit, machinery and
equipment sales tax exemptions, utility tax exemptions, dividend
income deductions and interest deductions.
TIF Districts
Currently, Springfield has seven TIF districts: the Central Area TIF; Fiat Allis Complex
TIF; Near North Crossing TIF; Far East Side TIF; Enos Park TIF;
S.H.A. TIF; and the Northeast TIF. The City of Springfield will
consider the eligibility of other sites as requested.
Utility Rate
Rider
CWLP offers an Economic Development Rider to any new or existing permanent,
general service customer meeting specific demand qualifications.
Private
Activity Bonds
As a
"home-rule" unit of government, the City of Springfield may issue
these bonds as a way to offer tax-exempt financing for qualifying
manufacturing companies. Bonds are issued by the city, on behalf of
the borrower, to finance new construction, rehabilitation, new
equipment and other related developmental costs. Interest paid on
the bonds is tax-free to investors, which induces lending at
substantially lower costs - often as much as 2%-3% below
conventional financing.
Infrastructure
Assistance
Through the
use of Community Development Block Grant funds, the City of
Springfield can provide assistance for public infrastructure
improvements, which lead directly to the creation or retention of
jobs. Funding amounts will vary, depending upon the costs associated
with the necessary improvements needed to complete the project. |
