Tax Credits - Location-Based
| Provider | Amount | Contact |
|---|---|---|
| Advantage Illinois Enterprise Zone An Enterprise Zone is a specific area designated by the City of Chicago and certified by the State of Illinois to receive tax incentives and other benefits that stimulate economic activity. Existing businesses or businesses relocating to one of Chicago’s six Enterprise Zones can lower operating expenses and increase profits by taking advantage of several incentives offered through the program including a sales tax exemption on building supplies, a real estate transaction tax exemption and a jobs tax credit. |
Varies | 312.744.4190 Denise.Roman@cityofchicago.org |
Cook County Property Tax Incentives |
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| Classes 7(a): Commercial Projects This incentive is intended to encourage commercial projects in areas determined to be “in need of commercial development.” Projects must be new construction, substantial rehabilitation, or re-occupancy of abandoned/vacant buildings. Fees include a $500 application fee and $100 to have the incentive applied to the property once it is built and/or occupied. 7(a) incentives are not renewable. |
Up to $2 Million Assessed at: 10% of market value for 10 years 15% in Year 11 20% in Year 12 |
312.603.3430 ihorwitz@cookcountyassessor.com |
| Classes 7(b): Commercial Projects This incentive is intended to encourage commercial projects in areas determined to be “in need of commercial development.” Projects must be new construction, substantial rehabilitation, or re-occupancy of abandoned/vacant buildings. Fees include a $500 application fee and $100 to have the incentive applied to the property once it is built and/or occupied. 7(b) incentives are not renewable. |
Over $2 million Assessed at: 10% of market value for 10 years 15% in Year 11 20% in Year 12 |
312.603.3430 ihorwitz@cookcountyassessor.com |
| Class L: Landmarks The real estate is to be used for commercial, industrial, multi-family residential or not-for-profit purposes and has been individually designated as a landmark or is a contributing building in a designated historic or landmark district. Properties with Class L designation will be assessed at 10% of fair market value for the first ten years, 15% in the eleventh year and 20% in the twelfth year. Commercial properties are not renewable. Industrial properties are renewable. |
Assessed at: 10% of market value for 10 years 15% in Year 11 20% in Year 12 |
312.603.7529 |
Low-Income Communities New Markets Tax CreditsThe New Market Tax Credit Program (NMTC) spurs new or increased investment into operating businesses and real estate projects in low-income communities. The NMTC Program attracts investments capital to low-income communities by permitting individuals and corporate investors to receive a tax credit against their Federal income tax return in exchange for making equity investments in specialized financial institutions called Community Development Entities (CDEs). |
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| City of Chicago Department of Housing & Economic Development and Chicago Development Fund Chicago Development Fund, a certified Community Development Entity (CDE), provides financing to projects in Chicago’s low-income communities through the New Markets Tax Credits (NMTC) program. NMTCs can subsidize up to 20% of a project’s capital needs, usually in the form of low interest, forgivable debt with a term of at least 7 years. |
City of Chicago Housing and Economic Development 121 N. LaSalle St., Suite 1000 Chicago, IL 60602 312.744.0892 |
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| Chicago Neighborhood Initiatives Through its subsidiary Community Development Entity (CDE) PNBI, CNI is responsible for allocating $50 million in federal New Markets Tax Credits in low-income communities in Chicago to finance developments such as community facilities, health centers, and charter schools. The credits are awarded annually based on a competitive application process. |
1000 E. 111th, St., 10th Floor Chicago, IL 60628 773.341.2062 jswan@cnigroup.org |
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| LISC LISC invests its NMTCs in both real estate and operating businesses, including commercial, industrial, community facilities, and mixed use projects. These investments range from $5 million to $15 million. LISC also manages a NMTC-enhanced small business loan fund to finance real estate investments for small businesses between $500K and $5 million. |
$500K - $5 million | 120 S. Riverside Plaza Floor 15 Chicago, IL 60606 312.697.6187 jsteen@newmarkets.org |
| Bethel New Life Bethel can loan funds to businesses and non-profits at a low-interest rate if the organization is located in, and provides products or services to a low-income community in Cook County. These are examples of what the funds could be used for:
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4950 W. Thomas St. Chicago, Illinois 60651 773.473.7870 x121 info@bethelnewlife.org |
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