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Economic Development Incentives
CITY OF BARRY REVOLVING LOAN FUND PROGRAM PIKE COUNTY COMMUNITY DEVELOPMENT CORPORATION REVOLVING LOAN FUND PROGRAM TWO RIVERS REGIONAL COUNCIL OF GOVERNMENTS REVOLVING LOAN FUND PROGRAM Two Rivers Regional Council of Governments offers a revolving loan fund to qualified applicants. TWO RIVERS RESOURCE CONSERVATION AND DEVELOPMENT AREA REVOLVING LOAN FUND PROGRAM Two Rivers RC&D also offers low interest loans. Call about rates.
ILLINOIS COMMUNITY DEVELOPMENT ASSISTANCE PROGRAM (C.D.A.P.) USDA RURAL DEVELOPMENT GUARANTEED BUSINESS LOANS Pike County Enterprise Zone Barry can also offer Enterprise Zone benefits if a project is in a certain area of the City.
Although the program is administered at the state level by the Department of Commerce and Economic Opportunity (DCEO), the Alliance and our partners will work with your company in securing these benefits. An enterprise zone is a specific area designated by the State of Illinois in cooperation with local governments to receive various tax incentives and other benefits to stimulate economic activity and neighborhood revitalization. Below are the following benefits of the Enterprise Zone Program: Property Tax Abatement - Property owners that improve or renovate industrial, commercial, or manufacturing property within the zones (and not within Tax Increment Financing Districts) are eligible to receive property tax abatement on the assessed value of the improvements. Sales Tax Exemption – A 6.25 percent state sales tax exemption is permitted on building materials to be used in an Enterprise Zone. Materials must be permanently affixed to the property and must be purchased from a qualified retailer. Income Tax Deduction for Financial Institutions: Banks are eligible for a special deduction from their Illinois corporate income tax return. Such institutions may deduct from their taxable income, an amount equal to the interest received from a loan for development in an enterprise zone. Enterprise Zone Machinery and Equipment Consumables/Pollution Control Facilities Sales Tax Exemption – The Revenue Act 35 ILCS 120/1d-1f A 6.25 percent sales tax exemption on purchases of tangible personal property to be used in the manufacturing or assembly process or in the operation of a pollution control facility within an Enterprise Zone is available. Eligibility is based on business making an investment in an Enterprise Zone of at least $5 million in qualified property that creates a minimum of 200 full-time-equivalent jobs, a business investing at least $40 million in a zone and retaining at least 2,000 jobs, or a business investing at least $40 million in a zone which causes the retention of at least 90 percent of the jobs existing on the date it is certified to receive the exemption. Enterprise Zone Utility Tax Exemption – A state utility tax exemption on gas, electricity, the Illinois Commerce Commission’s administrative charge and telecommunication excise tax is available to businesses located in Enterprise Zones. Eligible businesses must make an investment of at least $5 million in a 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. Enterprise Zone Investment Tax Credit – A state investment tax credit of 0.5 percent is allowed a taxpayer who invests in a qualified property in an Enterprise Zone. Qualified property includes machinery, equipment and buildings. The credit may be carried forward for up to five years. This credit is in addition to the regular 0.5 percent investment tax credit, which is available throughout the state, and up to 0.5 percent credit for an increase in employment over the previous year. Dividend Income Deduction – Individuals, corporations, trusts and estates are not taxed on dividend income from corporations doing substantially all their business in an Enterprise Zone. 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 eligible worker is hired. The credit may be carried forward for up to five years. A minimum of five workers must be hired to qualify for the credit. The credit is effective for people hired on or after January 1, 1986. Interest Deduction – Financial institutions are not taxed on the interest received on loans for development within an Enterprise Zone. Contribution Deduction – Business may deduct double the value of a cash or in-kind contribution to an approved project of a designated Enterprise Zone organization from taxable income. Enterprise Zone Participation Loan Program (EZ/PLP) The EZ/PLP is a variation of the conventional PLP Program, in that DCEO subordinates the loans through participating lending institutions, but the EZ/PLP may be able to provide small businesses located in an Enterprise Zone a more attractive loan rate than a conventional PLP.
Tax Increment Financing District The City of Barry offers Tax Increment Financing to new or expanding businesses. View the Barry TIF Redevelopment Area below:
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