Redevelopment Incentive Program (FAÇADE GRANT)
• The City will split the costs 50/50 with business up to $25,000.00 on improvements to the façade of the building.
•This requires the business to get the project approved first. Any required permits must be obtained.
• The business must pay the entire bill in full and present that evidence for reimbursement.
• Once this process is complete, the City usually reimburses within 30 days.
• This program can be used over several years; however, grants cannot exceed $50,000.00 per property over a five year period.
Tax Increment Financing (TIF)
• Over 4000 acres of the City has been set aside in eight TIF Districts. In these areas, redevelopment agreements can be established to allow developers to recoup costs.
•Currently, La Salle has eight TIF Districts in place: TIF I , TIF II, TIF III, TIF IV, TIF V (Downtown TIF), TIF VI (Water Park), TIF VII (Industrial Park), and TIF VIII (Community Partnership TIF)
• The increase in real estate taxes from their current level to the assessment after the business has completed all improvements is the increment we use to calculate the reimbursement.
• That increment is then split (level to be determined) annually between business partner and the City.
• TIF eligible costs are established prior to the agreement, and the city continues to reimburse the business each year until that total is met or the TIF expires.
• At the end of the agreement, the business may not have received all the TIF eligible costs. The City does not guarantee that all the agreed upon costs will be reimbursed. It is all based on the tax increment.
• If the increment is not enough to pay the business in full, the balance is the businesses responsibility.
• For businesses exceeding certain size and financial requirements a floating enterprise zone is available.
• Enterprise zones can provide state sales tax exemption, machinery/equipment sales tax exemption, utility tax exemption and jobs tax credit.
• Local incentives include a sales tax exemption, partial property tax abatement, investment tax credit & State Income Tax Deduction.
• Fees on building permits for building, signs, plumbing, electrical are reduced by 50%.
EDGE Tax Credit
The EDGE program provides an incentive to businesses to support job creation, capital investment and improve the standard of living for all Illinois residents. The non-refundable corporate income tax credit is calculated as a percentage (not to exceed 100%) of the expected income tax withholdings of new job created in the state. Tax credits are available to qualifying companies, equal to the amount of state income taxes withheld from the salaries of employees in newly created jobs. Non-refundable credits can be used against corporate income taxes to be paid.