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Coles Together Angela Griffin, President & CEO 400 Airport Road Mattoon, Illinois 61938 Ph: (217)258-5627 or (217)348-5627 - Fax:( 217)235-9492 Email: angela@colestogether.com
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Economic Development Incentives
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 | Coles County Community Development Corporation |
| Locally Controlled Funds for Gap Financing and Incentives at Below Market Rates |
| Locally Controlled Revolving Loan Funds |
| Locally Controlled Employee Training Funds |
| Assistance Obtaining State & Federal Grants and Loans |
| Utility Incentive Rates |
| Subsidized Industrial Land Prices |
Other Incentives Available for Qualifying Industries
Industrial Projects
Those projects where the primary use of the land and building(s) is of a regional headquarters, manufacturing, assembly, wholesale or warehouse/distribution nature.
| Expansion - Construction of any part of a building that results in an increase in any exterior dimension of an existing building and has at least one wall or floor in common with an existing building. |
| Rehabilitation - The improvement of any part of an existing building that does not result in an increase in any exterior dimension of the building. |
| New Construction - The improvement of any tract of land or site with a building where the interior space is encased by exterior walls, none of which are common along any plane or otherwise shared with an existing building. |
Coles County initially established its Illinois Enterprise Zone in March, 1990, with a life of 20 year. In January 2003, an additional 10 years was approved by the involved taxing bodies. The Enterprise Zone expires on December 31, 2020. Eligible projects started prior to January, 2010, will benefit for 10 full years of approximately 85% property tax abatements. By the nature of the Enterprise Zone, any site in Coles County can be amended into the Enterprise Zone for qualified manufacturing, warehousing and distribution projects.
Property Tax Abatement
The Coles Together Enterprise Zone has agree to provide 10 year abatement of approximately 85% of all real estate taxes which normally would be assessed for eligible industrial projects. Local tax abatements are valid until December 31, 2020 for industrial projects beginning with the tax year in which the new, increased assessment amount would be levied. The tax abatement incentive is available throughout the zone's boundaries. The abatement is offered by the county, participating municipal governments, local school districts and Lake Land College.
Sales Tax Exemption on Building Materials
An exemption of the
state sales tax on the purchase of building
materials to be incorporated into real estate within the boundaries of the Coles
Together Enterprise Zone. This incentive is available for qualified industrial projects
involving either new construction, or the rehabilitation/expansion of an
existing facility. To document the exemption
allowed, the retailer must obtain from
the purchaser
a copy of the Certificate
of Eligibility for Sales Tax Exemption issued by the administrator of the
Coles Together Enterprise Zone.
The Certificate of
Eligibility for Sales Tax Exemption must contain:
(1) a
statement that the building project identified in the Certificate meets all the
requirements for the building material exemption contained in the enterprise
zone ordinance of the jurisdiction in which
the building project is located;
(2)
the location or address of
the building project; and
(3) the signature of the administrator of the enterprise zone in which the building project is located.
In
addition, the retailer must obtain certification from
the purchaser that contains:
(1)
a statement
that the
building materials are being purchased for incorporation
into real
estate located in an
(2)
the location or address of the real estate into which the building
materials will be incorporated;
(3)
the name
of the enterprise zone in which that real estate is located;
(4)
a description of the building materials
being purchased; and
(5)
the purchaser's signature and date of purchase.
Illinois Income 0.5% Investment Tax Credit
A stated investment tax credit of 0.5% is offered to taxpayers making investments in qualified property, including machinery, equipment and buildings. This credit is in addition to the regular 0.5% investment tax credit available by the State of Illinois.
Local Building Permit Fee Waivers
Building, electrical and plumbing permits are required for all projects, except in unincorporated areas of Coles County. That involves new construction, substantial rehabilitation and expansion. However, within the Coles Together Enterprise Zone, the participating cities have waived the local fees normally associated with processing and issuance of the required permits.
$500 Per Job Tax Credit
A business may receive a $500 Illinois income tax credit for each job created within the zone for which a certified economically disadvantaged or dislocated worker (as defined by the Job Training Partnership Act) is hired. In order to qualify for the credit, a minimum of five workers must be hired during the business' taxable year. The CEFS Economic Opportunity Corporation offers training programs for the economically disadvantaged under the federal Job Training Partnership Act. Lake Land College also serves the Coles Together Enterprise Zone through the operation of a Dislocated Worker Center.
Interest Deduction
Financial institutions are not taxed on the interest received on loans for development projects located within an enterprise zone, thereby indirectly assisting the developing business in its financing.
Enterprise Zone Utility Tax Sales Tax Exemption
For a business certified by the state as making an investment within the enterprise zone of $5 million or more and creating a minimum of 200 full-time equivalent jobs; or investing $40 million and retaining 2,000 or more full-time jobs, a 4% state sales tax exemption is available on all tangible personal property (e.g., selected machinery and equipment, raw materials, inventory, component parts, supplies, manufacturing fuels, etc.). The tangible property must be used or consumed within the enterprise zone in the process of manufacturing or assembling goods for wholesale or retail sale.
5% Enterprise Zone Pollution Control Investment Sales Tax Exemption
For a business which is certified by the state as making an investment within the enterprise zone of $5 million or more and creating a minimum of 200 full-time equivalent jobs; or investing $40 million and retaining 2,000 or more full-time jobs, a 5% state sales tax exemption is available on tangible personal property (e.g., machinery, equipment, supplies, etc.) used or consumed in the operation of pollution control facilities.
Enterprise Zone Tax Questions and Answers
The Illinois EDGE program is intended to help level the playing field between Illinois and its neighboring Midwestern states when competing for the location of large job creation projects.
The Illinois EDGE program is administered by the Illinois Department of Commerce and Economic Opportunity (DCEO). DCEO's review will be based on written applications submitted by interested firms.
The amount of the Tax Credit is calculated on a case-by-case basis. The tax credits could be as high as the amount of tax receipts collected from the Illinois income taxes paid by newly hired and/or retained employees of the firm as pertaining to the project.
As a tax credit, the EDGE program allows a firm to reduce the costs of doing business in Illinois when compared with similar costs in other states where it could have located its operation.
The credits would be available to the firm for up to a total of 10 years for each project.
While each annual tax credit amount cannot be larger than the firm's state income tax liability (the income tax credits would not be refundable), the credit can be carried forward for up to five years.
Each firm receiving competitive credits would have to maintain the jobs created and/or retained along with the capital investment concurrent with the period in which it claims the credits.
The development project must add to the export potential of Illinois; for example, manufacturing or services exported out of state would be acceptable, but not retail trade and personal services.
The project must be an expansion of an existing operation or a new location. Plant relocations within Illinois are eligible for consideration only if there is a documented and substantiated business reason why their current location is inadequate.
Each project must commit to make a capital investment in the state of at least $5 million and must create a minimum of 25 new jobs (excluding recalls, transfers, etc.); or firms with less than 100 employees must make a capital investment of at least $1 million and must create a minimum of 5 new jobs, or the project must meet the investment and job creation, and/or retention requirements as set forth by DCEO.
The Applicant must demonstrate that if not for the Credit, the Project would not occur in Illinois by providing documentation evidencing that:
1) the Applicant has multi-state location options and could reasonably and efficiently locate outside of the state; or
2) at least one other state is being considered for the project; or
3) receipt of the Credit is a major factor in the Applicant's decision and that, without the Credit, the Applicant likely would not create and/or retain jobs in Illinois; or
4) the Credit is essential to the Applicant's decision to create and/or retain jobs in the state.
The cost differential should be identified, using the best available data, in the projected costs for the Applicant's project compared to the projected costs in the competing state, including the impact of the competing state's incentive programs. The cost differential should, for example, demonstrate the following:
1) specific costs of labor, utilities, taxes and other costs of an out-of-state site or the industry's cost structure in the competing region; or
2) specific cost differential due to the impact of a competing state's incentive programs.
FOR FURTHER INFORMATION:
Illinois Department of Commerce and Economic Opportunity
Economic Development for a Growing Economy Program
620 East Adams, Third Floor
Springfield, Illinois 62701
Dennis Gorss: 217-524-8449; TDD 800-785-6055
FAX 217-524-4145