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

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 Credits

The 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).
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
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
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:
  • Purchasing furniture or equipment
  • Increasing inventory or staff
  •  Renovation space
  • Constructing an addition to a building
  4950 W. Thomas St.
Chicago, Illinois 60651
773.473.7870 x121
info@bethelnewlife.org

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