A community with ties to the past and paving a road to the future

Economic Incentives

 

 

VILLAGE OF LENA BUSINESS DEVELOPMENT INCENTIVE PROGRAMS

All Lena incentive programs are administered by the Village of Lena and are determined by a vote of the Village Board of trustees.  Not all incentives are available to every applicant. Incentives will be catered to fit individual business needs.

Download the Economic Development packet to find out more about our community, incentives, schools and opportunities.

Property Tax Abatement

The Village of Lena is able to abate the Village portion of a businesses property tax.  The amount and length of the abatement are negotiable.

 

Sales Tax Rebates

The recipient of this incentive is eligible for a certain percentage of business related redevelopment costs based on a percentage of sales tax generated by the business.  The percentage amounts are negotiable.

 

Startup Cost Incentives

The program involves a waving of one or more Village startup fees to help defer the cost of initial development.  The waved fees will be determined on a case by case basis depending on individual business plans and set goals and objectives of the developer.

 

Lena Tax Increment Financing Districts

Lena is home to two (2) Tax Increment Financing (TIF) Districts which are designed to promote new economic development within the Village of Lena.  These TIF Districts help fund new developments by pooling property taxes that normally would be distributed between the Village, Fire Department, School District, Park District and Library District and dedicating this pooled fund to the development of the TIF district and assisting with eligible expenses for individual property owners. 

There are two TIF programs available in Lena which are dedicated to business development;

Standard TIF Agreement

Receive up to a 25% reimbursement of your total eligible redevelopment investment on your property located in the TIF district.  You must be a property owner to qualify for this incentive.  Eligible expenses include, but are not limited to: land acquisition, financing costs, rehabilitation costs, equipment related to building improvements, and so on.  The 25% will be reimbursed in the form of property tax rebates each year until the total eligible amount is reached or the TIF district has expired, whichever comes first. Visit a Village of Lena representative to find out what your project qualifies for.

Village of Lena Facade Program

The Village of Lena facade program offers a 50% reimbursement on facade renovations for businesses located in the TIF district.  Lena has partnered with a local architecture firm  to create a new look for Lena’s business community.  Once facade designs are completed and approved the applicant will receive a 50% reimbursement on facade improvement expenses.

 

LENA ECONOMIC DEVELOPMENT CORPORATION LOW INTEREST REVOLVING LOAN PROGRAM

The Lena Economic Development Corporation (LEDC) Low Interest Revolving Loan Fund (RLF) is intended to assist Lena businesses in their development needs.  The RLF has been established to provide a source of financing for expanding, start-up and re-locating businesses.  The RLF offers a low-interest option, 2 points below the prime rate, to qualifying businesses for assistance in the following:  

  • Retain and attract business that provide permanent jobs
  • Assist businesses with the opportunity to expand
  • Maximize investment within the Village
  • Redevelop vacant and /or blighted land
  • Promote sales and tax generating projects
  • Provide assistance to businesses so they can maintain their current level of service.

If you are interested in applying for the RLF, or would like to find out if your project qualifies contact Village Hall and speak with an economic development liaison.

 

STEPHENSON COUNTY ENTERPRISE ZONE

Investment Tax Credit

The Illinois Income Tax Act 35 ILCS 5/201, as amended, allows corporations, trusts, estates, individuals, partners, and Subchapter S shareholders a 0.5 percent credit against their state income tax for investments in qualified property which is placed in service in the City of Freeport/Stephenson County Enterprise Zone. To qualify a property must be newly built or have an improvement or addition made to it on or after the date the zone was designated. This credit is in addition to the existing 0.5 percent investment tax credit allowable statewide against their corporate personal property replacement tax.

Sales Tax Deduction

A point-of-sale tax exemption is available on building materials incorporated into real estate in the City of Freeport/Stephenson County Enterprise Zone.  In order to receive this State and local sales tax exemption, building materials must be used for remodeling, rehabilitation or permanent new construction requiring a building permit. A Sales Tax Exemption Form and building permit issued by the City of Freeport, Stephenson County or applicable unit of local government must be submitted to the Enterprise Zone Administrator prior to the start of the project.  The Enterprise Zone Administrator then issues a Certificate of Eligibility for Sales Tax Exemption.

EZ Machinery and Equipment Sales Tax Exemption

A company in an enterprise zone may be able to receive a 6.25% state sales tax exemption on all tangible property which is used or consumed within an enterprise zone in the process of manufacturing.

To be eligible for this incentive:

  • a business must invest in the Enterprise Zone at least $5 million in qualified property and create a minimum of 200 fulltime-equivalent jobs; or,
  • a business must invest at least $40 million in the zone and retain at least 2,000 jobs; or,
  • a business must invest at least $40 million in the zone and cause the retention of at least 90 percent of the jobs existing on the date it is certified to receive the exemption.

Utility Tax Exemption

A 5 percent state tax exemption on gas, electricity and the Illinois Commerce Commission's .1 percent administrative charge and excise taxes on the privilege of originating or receiving telecommunication is available to businesses located in Enterprise Zones.

Eligible businesses must make:

  • an investment of at least $5 million in qualified property that creates a minimum of 200 full-time equivalent jobs in Illinois,
  • an investment of $20 million that retains at least 1,000 full-time-equivalent jobs, or,
  • an investment of $175 million that creates 150 full-time equivalent jobs in Illinois.
  • The majority of the jobs created must be located in the Enterprise Zone where the investment occurs.

An eligible investment may be either: 1) investments in qualified property as defined in the Enterprise Zone Investment Tax Credit; or 2) non-capital and non-routine investments and associated service costs made for the basic construction, renovation, or improvement of qualified property including investments in productive capacity, efficiency, product quality or competitive position. 

Open Market Natural Gas Tax Exemption

Companies who are located within the boundaries of the City of Freeport/Stephenson County Enterprise Zone are entitled to an exemption on the state sales tax for wheeled or open market natural gas transactions.

Property Tax Incentives

A company in an enterprise zone may have the increase in property taxes due to new improvements or renovations abated. This is useful because every time a property is improved it is reassessed, and therefore the taxes increase.  To be eligible for this incentive an Enterprise Zone Application along with the building permit issued by the City of Freeport, Stephenson County or applicable unit of local government must be submitted to the Enterprise Zone Administrator prior to the start of the project. 

To view a map of the Stephenson County/ City of Freeport Enterprise Zone please visit the map layer on our Site Selector Workspace.

Building Permit Fees

The City of Freeport waives its Building Permit Fee for Qualified Enterprise Zone Projects; although it does charge a Plan Review Fee.  Stephenson County does not waive its building permit fees for Qualified Projects in unincorporated Stephenson County.

The Village of Lena and Lena Economic Development Corporation regularly partner with regional, state and federal development agencies in order to expand our economic development resources and increase our ability to meet the needs of incoming and expanding businesses in Lena.  To find out more about our economic development partners please visit our development partners page on this web site.

If you have more questions on Lena incentives call Tyson Terhune, Coordinator of Economic Development and Support Services at 815-369-4016