Business Incentives

EDGE (Economic Development for a Growing Economy) Tax Credit Program

The EDGE program offers incentive to locate or expand operations in Illinois; requires active consideration of a competing location in another state. Provides tax credits to qualifying companies equal to the 50% of the State income taxes withheld from the salaries of employees of newly created jobs (75% in underserved areas), and 10% of eligible training costs of new full-time employees positions at the project.

If company has fewer than 100 worldwide employees, requires minimum new jobs of 5% of worldwide employment and no minimum investment. If more than 100 worldwide employees, requires the lesser of 10% of worldwide employment or 50 new FT jobs and $2.5 million minimum investment.

Enterprise Zones Program

The Illinois Enterprise Zone Program is designed to stimulate economic growth and neighborhood revitalization in economically depressed areas of the State through State and local tax incentives, regulatory relief and improved governmental services. Businesses located or expanding in an Illinois enterprise zone may be eligible for the following state and local tax incentives:

• Exemption on retailers’ occupation tax paid on building materials
• Expanded state sales tax exemptions on purchases of personal property used or consumed in the manufacturing process or in the operation of a pollution control facility
• An exemption on the state utility tax for electricity and natural gas
• An exemption on the Illinois Commerce Commission’s administrative charge and telecommunication excise tax

Exemptions are available for companies that make minimum statutory investments that either create or retain a certain number of jobs. These exemptions require a business to make application to, and be certified by, the Illinois Department of Commerce.

Find out more about the programs and benefits here.

IDOT Economic Development Program (EDP)

The Illinois Department of Transportation Economic Development Program provides state assistance for roadway improvement or new construction that are necessary for access to new or expanding industrial, manufacturing or distribution type companies. The funding commitment is based on how many jobs will be created and/or retained; Applicants will receive a contributed portion from the State of $30,000 for every new job created and $10,000 for every job retained up to a maximum CAP of $2 million. The company must commit to creating new employment and/or retaining employment in Illinois. Funding will include preliminary engineering, construction engineering and contingencies.

The EDP program uses state only funds and is designed to provide 50% state funding for eligible locally owned roadways and 100% state funding for roadway improvements on state owned routes. The remaining 50% match will be provided by local government entities or private sources.

Data Centers Investment Program

The Data Centers Investment Program provides owners and operators with exemptions from a variety of state and local taxes for qualifying Illinois data centers. The program also provides data center owners and operators with a tax credit of 20% of wages paid for construction workers for projects located in underserved areas.

Requires $250 million capital investment over a 60-month period in a carbon neutral or green building standard data center that creates at least 20 FTE permanent jobs.

High Impact Business Program (HIB)

The HIB program supports large-scale economic development activities by providing tax incentives (similar to Enterprise Zones) to companies that make substantial capital investments in operations and create or retain an above average number of jobs.
Eligible projects must invest a minimum of $12 million and create 500 full-time jobs, or $30 million investment with the retention of 1,500 full-time jobs. Investments must take place at designated locations in Illinois outside of an Enterprise Zone.

Advantage Illinois

The Advantage Illinois program enhances access to capital for Illinois businesses. Under the Participant Loan Program, financial institutions identify potential opportunities for state participation:

• Standard Participation Loan Program (PLP) – designed to enable small businesses to obtain medium to long-term financing, to help grow and expand their businesses.
• Minority/Women/Disabled/Veteran-Owned Businesses – similar to Standard PLP; however, the amount of financial support may range depending on loan term, MWDV control/ownership.
• Revolving Line of Credit (RLOC PLP) – similar to Standard PLP except in the form of a revolving line of credit. Maximum term is two years and further support requires reapplication.

Funding may be used for many purposes, including but not limited to start-up costs, working capital, business procurement, franchise fees, equipment, inventory, as well as the purchase, construction, renovation, or tenant improvements of an eligible place of business that is not for passive real estate investment purposes.

Angel Investment Credit Program

The Illinois Angel Investment Tax Credit Program attracts and encourages investment dollars into early-stage, innovative companies throughout Illinois. Investments provide these companies with much needed access to working capital to further their growth and success in Illinois. Tax credits are allocated on a quarterly basis throughout the year and are awarded on a first-come, first-served basis to qualifying companies.

Illinois Apprenticeship Education Expense Tax Credit Program

The Illinois Apprenticeship Education Expense Tax Credit Program allows employers a tax credit for qualified educational expenses associated with qualifying apprentices. Employers may receive a credit of up to $3,500 per apprentice. An additional credit of up to $1,500 for each apprentice may be applied if the apprentice resides in or the employer’s principal place of business is located in an underserved area.

Other Programs

REV Reimagining Electric Vehicles Program
Film Production Tax Credit
Illinois Opportunity Zones
River Edge Redevelopment Zone Program
Illinois Historic Preservation Tax Credit Program
Prime Sites Capital Grant Program

Complete details on all IL DCEO Business Assistance Programs Here:
Incentives and Tax Credits – Assistance for Businesses (illinois.gov)