Enterprise Zone Program
Businesses located or expanding in an Illinois enterprise zone may be eligible for the following state and local tax incentives:
The Whiteside Carroll Enterprise Zone includes portions of Rock Falls, Sterling, Morrison, Fulton, Tampico, Prophetstown, Lyndon, Milledgeville, Mt. Carroll, Savanna, and Thomson.
Some businesses may be eligible for state and local tax incentives, regulatory relief, and improved government services. The program is a resource available to businesses to expand their operations and create and/or retain quality jobs in Whiteside and Carroll Counties. Businesses must finalize an Enterprise Zone agreement, agree to retain or create jobs, and establish or expand a facility within an Enterprise Zone.
Incentives include property tax abatement and sales tax exemptions on building materials.
From 2004 to 2018 the Whiteside Carroll Enterprise Zone has fostered $337.8 million in investments and has helped create or retain more than 6,592 jobs.
Local governments can use TIF funds to incentive businesses to locate within the district’s boundaries or to make infrastructure improvements like new roads or sewers within the district. The Cities of Sterling, Illinois, administers their own TIF district program.
The EDGE program provides a non-refundable corporate income tax credit, which is calculated as a percentage (not to exceed 100%) of the expected income tax withholdings of new jobs created. Credits are available to qualifying companies and can be used against future corporate income taxes. EDGE credits are processed on an annual basis for up to 10 years.
Industrial Revenue Bonds are one of several low-cost financing options available to qualifying manufacturers and provide tax-exempt, long-term financing at rates that can be significantly lower than conventional financing, including construction and business loans. The financing can be used for the purchase of new manufacturing equipment, construction of a new facility, expansion of an existing facility, or the acquisition of another company’s facility.
The principal benefit of an IRB is its tax-exempt status and companies may save as much as 22% in interest rate costs. IRBs are available with fixed or variable-rate financing and are the most cost effective with issues of $2 million or more.