Business Incentives

Select Profile:

Recent Activity

Use of state business incentives questioned: Instead of handing out incentives to companies to create jobs, some Illinois businesses say the state should instead lower its corporate income tax rate. In testimony before a joint House and Senate committee Tuesday, business owners and business groups told state lawmakers that the recently raised tax rate has created a rush by other states to poach Illinois companies. Read more:http://www.pantagraph.com/news/state-and-regional/illinois/article_eb9c9a24-cdc7-11e0-a0e2-001cc4c03286.html

Program Information

Key Tax Rates

  • State Individual Income Taxes [Source]
    • Tax Rate Range
      • Low: 5.00%
      • High:
    • Income Brackets
      • Lowest: Flat Rate
      • Highest: Flat Rate
  • Corporate Income Tax Rates [Source]
    • Tax Rate: 9.5%
    • Lowest Tax Bracket: Flat Rate
    • Highest Tax Bracket: Flat Rate
    • Number Of Tax Brackets: 1
  • Excise Tax Rates [Source]
    • General Sales And Gross Receipts Tax: 6.25
    • Motor Fuel Excise Tax Rates (Cents Per Gallon)
      • Gasoline: 20.1
      • Diesel: 22.6
      • Gasohol: 20.1

Key Indicators

  • Educational Attainment [Source]
    • Percent of people 25 years and over who have completed
      • High School: 86.40 %
      • Bachelor's: 30.60 %
      • Advanced Degree: 11.70 %
  • State Population [Source]
    • Total: 12,830,632
  • Income Indicators
    • Median Household Income: $50,761 [Source]
    • Personal Income (millions of dollars): $570,596 [Source]

Business Incentives

  • Business Development Public Infrastructure Program (BDPIP)

    The BDPIP program is designed to provide grants to units of local government for public improvements on behalf of businesses undertaking a major expansion or relocation project that will result in substantial private investment and the creation and/or retention of a large amount of Illinois jobs. The infrastructure improvements must be made for public benefit and on public property and must directly result in the creation or retention of private sector jobs. The local government must demonstrate clear need for financial assistance to undertake the improvements. Grant eligibility and amounts are determined by the amount of investment and job creation or retention involved.

  • Community Development Assistance Program for Economic Development (CDAP-ED)

    The CDAP- ED program is a federally funded program that is designed to provide grants to units of local government for economic development activities related to business retention and or expansion opportunities. The program is targeted to assist low-to-moderate income people by creating job opportunities and improving the quality of their living environment. Local governments qualifying to receive grant funds can then make these funds available in the form of loans to businesses locating or expanding in their community. A local government may request grant funds of up to $750,000. Funds may be used for machinery and equipment, working capital, and building construction and renovation. The local government may also use the grant funds for improvements to public infrastructure that directly support a specific economic development project. Applications may be submitted at any time. Local government entities located in heavily populated metropolitan areas of the state may receive funding directly from the federal government and therefore, are ineligible for participation through this program.

  • Community Service Block Grant (CSBG) Loan Program

    The CSBG Loan Program is administered jointly by the Illinois Department of Commerce and Economic Opportunity (DCEO), statewide Community Action Agencies (CAAs) and Illinois Ventures for Community Action (IVCA). The Program provides long-term, fixed-rate financing to new or expanding small businesses in exchange for job creation and employment for low-income individuals. CSBG funds usually make up between 20-49% of the entire loan project and have a low interest rate of 5% to 7.5%.

  • DCEO's Community Development Fund

    Part of the Governor Quinn's Neighborhood Recovery Initiative, starting in November and available until funds are depleted. DCEO is partnering with financial institutions with strong small business lending backgrounds to distribute $5 million in micro loans to start-ups and existing small businesses through the Community Development Fund. More than 300 loans will likely be made to start-up and existing small businesses, which will lead to more than 800 jobs being created or retained over the next two years.

  • Economic Development For a Growing Economy Tax Credit Program (EDGE)

    The EDGE program is designed to offer a special tax incentive to encourage companies to locate or expand operations in Illinois when there is active consideration of a competing location in another State. The program can provide tax credits to qualifying companies, equal to the amount of state income taxes withheld from the salaries of employees in the newly created jobs. The non- refundable credits can be used against corporate income taxes to be paid over a period not to exceed 10 years. To qualify a company must provide documentation that attests to the fact of competition among a competing state, and agree to make an investment of at least $5 million in capital improvements and create a minimum of 25 new full time jobs in Illinois. For a company with 100 or fewer employees, the company must agree to make a capital investment of $1million and create at least 5 new full time jobs in Illinois.

  • Employer Training Investment Program

    The Employer Training Investment Program (ETIP) supports Illinois workers’ efforts to upgrade their skills in order to remain current in new technologies and business practices, enabling companies to remain competitive, expand into new markets and introduce more efficient technologies into their operations. ETIP grants may reimburse Illinois companies for up to 50 percent of the cost of training their employees. Grants may be awarded to individual businesses, intermediary organizations operating multi-company training projects and original equipment manufacturers sponsoring multi-company training projects for employees of their Illinois supplier companies.

  • Employer Training Investment Program - Incentive Component

    The ETIP Incentive Program is designed for Illinois businesses applying for training funds as part of an ILDCEO Business Development Project to which the company is operating or locating in Illinois in conjunction with planned permanent expansion, location or retention activities.

  • 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.

  • Enterprise Zone Program

    The Illinois Enterprise Zone Program is designed to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state. This is accomplished through state and local tax incentives, regulatory relief, and improved governmental services.

  • High Impact Business (HIB)

    The HIB program is designed to encourage large-scale economic development activities, by providing tax incentives (similar to those offered within an enterprise zone) to companies that propose to make a substantial capital investment in operations and will create or retain above average number of jobs. Businesses may qualify for: investment tax credits, a state sales tax exemption on building materials, an exemption from state sales tax on utilities, a state sales tax exemption on purchases of personal property used or consumed in the manufacturing process or in the operation of a pollution control facility. The project must involve a minimum of $12 million investment causing the creation of 500 full-time jobs or an investment of $30 million causing the retention of 1500 full-time jobs. The investment must take place at a designated location in Illinois outside of an Enterprise Zone. The program has been expanded to include qualified new electric generating facility, production operations at a new coal mine or, a new or upgraded transmission facility that supports the creation of 150 Illinois coal-mining jobs, or a newly constructed gasification facility as a "Coal/Energy High Impact Businesses". In 2009, the program was further expanded to include wind energy facilities. The designation as a Wind Energy/High Impact Business is contingent on the business constructing a new electric generation facility or expanding an existing wind power facility. “New wind power facility” means a newly constructed electric generation facility, or a newly constructed expansion of an existing electric generation facility, placed in service on or after July 1, 2009, that generates electricity using wind energy devices. “New wind energy device” means any device, with a nameplate capacity of at least 0.5 megawatts, that is used in the process of converting kinetic energy from the wind to generate electricity.

  • Illinois Angel Investment Credit Program

    The Illinois Angel Investment Credit Program is designed to offer a tax credit to interested firms or natural person(s) who make an investment in one of Illinois' innovative, qualified new business ventures. The investment will encourage job growth and expand capital investment in Illinois. The program can offer a tax credit to qualifying firms in an amount equal to 25% of their investment made directly in a qualified new business venture. The maximum amount of an investment that may be used as the basis for a credit under this section is $2,000,000 for each investment directly in a qualified new business venture. An awarded tax credit may not be sold or otherwise transferred to another person or entity. Businesses desiring to be registered as a qualified new business venture shall submit a registration form in each taxable year for which the business desires registration. The registration will attest to the fact that the business is principally engaged in innovation, their business headquarters is located in Illinois and their business has the potential for increasing jobs and capital investment in Illinois. Interested firms or natural person(s) desiring a tax credit based on their investment in a qualified new business venture must submit an application to the Department which attests to the fact that an investment has been made and remains in the qualified new business venture for no less than 3 years.

  • Illinois Capital Access Program (CAP)

    The Illinois Capital Access Program (CAP) is designed to encourage financial institutions to make loans to small and new businesses that do not qualify under conventional lending policies. CAP is a form of loan portfolio insurance, which provides additional reserve coverage to the lender on loan defaults. By participating in CAP, lenders have available to them a proven financing mechanism to meet the needs of financial institutions and Illinois small businesses.

  • Illinois Department of Agriculture AgriFIRST Grant Program

    The AgriFIRST program is designed to provide grants to persons and agribusinesses in Illinois for the purpose of developing projects that enhance the value of agricultural products or expand agribusiness in Illinois.

  • Illinois Department of Transportation (IDOT)

    IDOT has several programs that provide state assistance in improving highway and rail access improvements to new or expanding industrial, distribution or tourism developments. The focus of these programs is the retention and creation of Illinois jobs. Funding may be available for transportation improvement projects related to facilities that provide direct access to economic development projects. Projects providing access to retail establishments, office parks, government facilities or school/universities are not eligible. To view IDOT programs please click on the links below.

  • Illinois State Treasurers Office

    The Illinois State Treasurer's Office offers programs that are designed to assist the Illinois business community by providing access to capital and financing at affordable rates in order to promote economic development activities that create and retain jobs within the state.

  • Large Business Development Program (LBDP)

    The LBDP program is designed to provide grants to businesses undertaking a major expansion or relocation project that will result in substantial private investment and the creation and/or retention of a large number of Illinois jobs. Funds available through the program may be used by large businesses for bondable business activities, including financing the purchase of land or buildings, building construction or renovation, and certain types of machinery and equipment. Grant eligibility and amounts are determined by the amount of investment and job creation or retention involved.

  • Manufacturing Modernization Loan Program

    The Manufacturing Modernization Loan Program is designed to provide manufacturers with access to adequate and affordable financing for upgrading and modernizing their manufacturing equipment and operations.

  • Minority, Veteran, Women, and Disabled Participation Loan Program (MVWD/PLP)

    The MVWD/PLP program is a variation of the conventional PLP, in that DCEO may subordinate the loans through participating lending institutions, but the MVWD/PLP program can provide Illinois small businesses that are 51 percent owned and managed by persons who are minorities, veterans, women, or disabled, with loans up to loans up to $100,000 or 50 % of the total project.

  • New Markets Development Program

    The Illinois New Markets Development Program provides supplemental funding for investment entities that have been approved for the Federal New Markets Tax Credit (NMTC) program. This program will support small and developing businesses by making capital funds more easily available and will make Illinois more attractive to possible investors.

  • Participation Loan Program (PLP)

    The PLP program is designed to work through banks and other conventional lending institutions, to provide subordinated financial assistance to Illinois small businesses that employ Illinois workers. A business with 500 or fewer employees may apply for a PLP loan of not less than $10,000 nor more than $750,000. Loans shall not exceed 25% of the total project and may not be used for debt refinancing or contingency funding.

  • Port District Loan Program Announcement

    The Illinois Department of Commerce and Economic Opportunity (DCEO) announces a request for loan applications from the Port District Revolving Loan Program. DCEO is authorized by the Illinois Small Business Development Act (30 ILCS 750/9-11) a/k/a the Port Development Revolving Loan Program to provide loans to Illinois port districts to facilitate and enhance the utilization of Illinois' navigable waterways and the development of inland intermodal freight facilities. Up to $3 million loan funds will be made available on a competitive basis.

  • Revolving Line of Credit Program (RLOC)

    The RLOC program can provide qualifying businesses with a subordinated line of credit through banks and other convention lending institutions at affordable interest rates.

  • River Edge Redevelopment Zone

    The purpose of the River Edge Redevelopment Program is to revive and redevelop environmentally challenged properties adjacent to rivers in Illinois.
    The River Edge Redevelopment Zone Act authorizes DCEO to designate zones in four cities – Aurora, East St. Louis, Elgin and Rockford.

  • Rural Micro-Business Participation Loan Program

    The Rural Micro-business Participation Loan Program is a variation of the Participation Loan Program designed to provide subordinated loans of up to 50% of a project (maximum $25,000) to Illinois Rural Micro-businesses through participating lending institutions. A rural micro-business is a for profit business that: (i) employs 5 or fewer full-time employees, including the owner if the owner is an employee, and (ii) is based on the production, processing, or marketing of agricultural products, forest products, cottage and craft products, or tourism. The borrower is required to provide equity of at least 10% of the project up to $1,000 (10% of a $10,000 project). Funds cannot be used for debt refinancing or contingency funding.

  • Tax Increment Financing District (TIF)

    Illinois law allows units of local governments the ability to designate areas within their jurisdiction as TIF districts. These specially designated districts are used by local governments as a way to spur economic growth by dedicating the sales tax revenues and additional property tax revenues generated with in the TIF for improvements within the district with the hope of encouraging new economic development and jobs.

  • The Illinois Finance Authority (IFA)

    The Illinois Finance Authority (IFA) is a self-financed, state authority principally engaged in issuing taxable and tax-exempt bonds, making loans, and investing capital for businesses, non-profit corporations, agriculture and local government units statewide. IFA finances about $3 billion each year, helping generate economic growth and job creation.