VILLAGE OF LENA
INCENTIVE PROGRAMS
All Lena incentive programs are administered by the
Village of Lena and are determined by a vote of the Village Board.
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 Village of Lena startup cost
incentives program is administered by the Village of Lena and determined by a
vote of the Village Board. 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.
These individual cases will be considered and reviewed by the Lena
Economic Development Corporation and presented to the Village Board for final
approval.
Low Interest Loan Program (Revolving Loan Fund, RLF)
This incentive provides a low interest loan oportunity to assist in expansion or help a business locate within the village. The RLF is not designed to be the primary source of financing for a project. It is intended to provicde a source of financing which may otherwise not be available in the community. The RLF is intended with companies, noth existing and startup, that have excellent potential for growth and will provide increased employment in the village and diversify Lena's economy. Contact Village Administrator Tyson Terhune for more information.
LENA TAX
INCREMENT FINANCING (TIF) DISTRICT
The Lena Tax Increment Financing
Districts are local tools for economic development designed to coordinate
various tax incentives and other benefits to help developers defray TIF
eligible costs to stimulate commercial economic activity and downtown revitalization.
The district will remain in effect until
2023.
The Village of Lena TIF Districts help fund
new developments by dedicating increased real estate taxes generated by the
development to the developer to help defray eligible costs. This estate tax increment includes all real
estate taxes generated – school, county, park district, city, etc.
The new taxes generated are deposited
into a special TIF fund with the Village and are used to assist with eligible
expenses. Such expenses include: land
costs, sewer, water, streets, demolition, repair, renovation, parking, site
work, landscaping – but not the costs of newly constructed buildings.
All funds generated by the District must
be used for projects located within the District.
STEPHENSON COUNTY INCENTIVE PROGRAMS
United States Department of Agriculture
Business and Industry Loan Guarantee Program
Because
Stephenson County, IL has a population less than 50,000, it is considered a
rural County for the U.S. Department of Agriculture. As such, any business loan made by a state or
federally chartered lending institution making a loan for any business in
Stephenson County can seek to have a USDA B&I Loan Guarantee backup such a
transaction. The limits of their loan
guarantees are for project loans of up to $25,000,000. In your case, for a $1 million loan, USDA
would guarantee 80% or $8,000,000. The
cost of such to the company applying for the loan will is 1% of the loan
guarantee (ie-$80,000) if such a project is located
within a state designated Enterprise Zone.
Otherwise, the one time loan fee is 2% of the loan guarantee. Additionally, the USDA B&I Loan Guarantee
Program has no Davis-Bacon or Prevailing Wage Rate requirements.
LENA/STEPHENSON
COUNTY ENTERPRISE ZONE
“The purpose of the state’s Enterprise
Zone Program is to stimulate economic growth and neighborhood revitalization at
the local level through the following:
·
State
and local tax incentives
·
Regulatory
relief
·
Improved
government services
Since the Enterprise Zone Act was passed
by the General Assembly in 1982, the department has designated 97 enterprise
zones throughout the state. During
Fiscal Year 2008, local enterprise zone administrators reported investments of
over $4.6ll billion that resulted in the creation of 21,606 jobs and the
retention of 17,240 jobs.
Although other factors are undoubtedly
involved, enterprise zone designation is a highly important determinant of a
business’s decision to locate or expand in Illinois. Indeed, we believe that the Enterprise Zone
Program is one of the state’s most successful economic development tools.”
STATE INCENTIVES
Tax Exemptions
Sales Tax Exemption – A 6.25% state sales tax exemption is permitted on building materials
to be incorporated into real estate located within an enterprise zone
established by a county or municipality.
Materials used for remodeling, rehabilitation or new construction are eligible for this exemption.
Machinery and Equipment/Pollution Control Facilities
Sales Tax Exemption –A 6.25% state
sales tax exemption is available on purchases of tangible personal property to
be used or consumed in the manufacturing or assembly process or in the
operation of a pollution control facility within an enterprise zone. Eligibility is contingent upon a business
making a $5 million investment that causes the creation of 200 full-time equivalent
jobs in Illinois, or other greater investment and job criteria.
Enterprise Zone Utility Tax Exemption – A state utility tax exemption on gas, electricity
and the Illinois Commerce Commission’s administrative charge and
telecommunication excise tax is available to businesses located in enterprise
zones. Eligibility is contingent upon a
$5 million investment that causes the creation of 200 full-time equivalent jobs
in Illinois, or other greater investment and job criteria.
Enterprise Zone Investment Tax Credit – A state investment tax credit of .5% is allowed a
taxpayer who invests in qualified property in a zone. This is in addition to other investment tax
credits available.
Jobs Tax Credit
– The Enterprise Zone Jobs Tax Credit allows a business a $500 credit on
Illinois income taxes for each job created in the zone for which a certified
dislocated worker or economically disadvantaged individual is hired. A minimum of five eligible employees must be
hired to qualify for the credit.
Dividend Income Deduction - Dividend income is not taxed from corporations doing
substantially all their business in a zone.
Interest Deduction – Financial
institutions are not taxed on the interest received on loans for development
within an enterprise zone.
Contribution Deduction – Businesses may deduct double the value of cash or
in-kind contributions to approved projects of a designated zone organization.
Local governments may
provide a variety of local incentives to further encourage economic growth and
investment in enterprise zones. The
incentives offered are determined by the local governments. The following list is not inclusive but
serves as an example of the most common local enterprise zone incentives
offered:
·
Abatement of
property taxes on new improvements
·
Homesteading and shopsteading programs
·
Waiver of business
licensing and permit fees
·
Streamlined
building code and zoning requirements
·
Special local
financing programs and other resources