Logan County Enterprise Zone

Enterprise Zones are an important tool for stimulating economic growth and community revitalization. Incentives are provided to attract business start-ups and expansions, create new jobs, encourage revitalization of neighborhoods, and expand the tax base. The following are a brief introduction to the incentives offered in the Lincoln/Logan County Enterprise Zone

Eligible Uses

Enterprise Zone benefits shall be extended to those projects involving manufacturing operations including the assembly, fabrication, repair, restoration or creation of products, commercial storage, warehousing, distribution, telemarketing, phone order centers, agribusiness, mining, offices, health care facilities, retail projects, commercial enterprises defined as businesses whose principle revenue comes from on-premise sale of food, beverages, gasoline, durable goods or merchandise of any kind or the offering of services.

Minimum Investment

The improvements or renovations are of the scope and nature for which a building permit has been obtained and has an estimated cost of at least $5,000.00.

Enterprise Zone Map

A map of the Enterprise Zone can be found on the Logan County GIS Internet Mapping application.  To view the boundaries of the Enterprise Zone turn on the layer by clicking the box next to Enterprise Zone Boundary. To view the boundary of an area more closely, use the “Zoom In” (magnifying glass with a + in the middle) to drag a box and zoom into a specific area. To locate a specific parcel, use the “Search by Parcel Number” feature, “right click” on the parcel found and then click “Zoom To” to zoom to the parcel.

Local Incentives

Property Tax Abatement

Abatements are offered for a total of ten (10) years based on the following schedule:

Years 1-5         100% of the increase in value

Years 6-10       50% of the increase in value

The abatement applies only to taxes on the increase in assessed value attributable to the new construction, revitalization, or renovation. Taxes based on the assessed value of land and existing improvements continue to be extended and collected. Abatement of taxes on any parcel shall not exceed the amount attributable to the eligible improvements on the property.

The following taxing authorities offer tax abatements:

  • Logan County
  • City of Lincoln
  • Lincoln Elementary School District 27
  • Lincoln Park District

Building Materials Tax Exemption

Each retailer who makes a sale of building materials to be incorporated into real estate located in the Enterprise Zone may deduct receipts from such sales when calculating the tax imposed by the State of Illinois. The deduction shall be limited to and shall only apply to any remodeling, rehabilitation, or new construction which the Enterprise Zone Administrator has issued a Certificate of Eligibility for Sales Tax Exemption. A copy of the Certificate must be provided to the retailer at the time of sale.

Building materials that are eligible for the enterprise zone sales tax deduction include items that are permanently affixed to real property such as lumber, mortar, glued-down carpets, paint, wallpaper and similar affixed items. The deduction does not apply to materials purchased for routine maintenance, repair, or upkeep of the property.

An Application for Sales Tax Exemption must be submitted to the Zone Administrator along with a copy of the building permit for the project.

Building Permit Fee Reduction

Eligible projects will receive a fifty percent (50%) reduction in building permit fees. The improvements or renovations must be of the scope and nature for which a building permit has been obtained and has an estimated cost of at least $5,000.00.  Application fees for zone changes, variances, conditional uses, or special uses are not waived.

State Incentives

For additional information on incentives please click on the incentive and a link will take you to the Illinois Enterprise Zone Association website.  The State offers the following tax incentives for investment in an Illinois Enterprise Zone:

INVESTMENT TAX CREDIT

Allows a .5 percent credit against the state income tax for investments in qualified property which is placed in service in an enterprise zone.
–> More Information Here

EZ MANUFACTURING , MACHINERY AND EQUIPMENT SALES TAX EXEMPTION

Allows a business enterprise that is certified by DCCA, as making a $5 million investment that either: creates a minimum of 200 full-time equivalent jobs in Illinois; or retains a minimum of 2,000 full-time jobs in Illinois; or which retains 90% of the existing jobs, a 6.25 percent exemption on all tangible personal property which is used or consumed in the process of manufacturing or assembly of tangible personal property for wholesale or retail sale or lease.
–> More Information here

UTILITY TAX EXEMPTION

Allows a business enterprise that is certified by DCCA, as making an investment in the zone that either: creates a minimum of 200 full-time equivalent jobs in Illinois, or retains a minimum of 1,000 full-time jobs in Illinois, a 5 percent state sales tax exemption on gas, electricity and the Illinois Commerce Commission .1 percent administrative charge and excise taxes on the act or privilege of originating or receiving telecommunications.
–> More Information Here

JOB TAX CREDIT

Offers employers a tax credit on their Illinois income taxes for hiring individuals who are certified as economically disadvantaged or as dislocated workers, a credit of $500 per eligible employee hired to work in the zone during the taxable year.
–> More Information Here

INCOME TAX DEDUCTION FOR FINANCIAL INSTITUTIONS
Financial institutions are eligible for a special deduction from their Illinois corporate income tax return, an amount equal to the interest received from a loan for development in an enterprise zone.
–> More Information Here

DIVIDEND DEDUCTION
Taxpayers may deduct from their taxable income an amount equal to those dividends which were paid to them by a corporation which conducts substantially all of its operations in an enterprise zone.
–> More Information Here 

Lincoln / Logan Enterprise Zone Administrator

Will D’Andrea
529 S. McLean Street
Lincoln, IL 62656
Telephone: 217-732-8835
Email: gis.planning@co.logan.il.us