Incentives

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Incentives

Joliet views economic development as a tool to promote a high standard of living. Access to employment opportunities, housing and a diversity of goods and services results in a stronger community. When appropriate, business incentives are utilized to foster development that meets the strategic goals of the City.

The most valuable business incentive a community can provide are a combination of speed, clarity and responsiveness. Joliet is renowned for its ability to work with prospects to insure that all phases of development progress in a timely manner. From concept planning to final inspection, the Joliet development team provides highly personalized attention to each project.

Formal incentive programs are available to meet the needs of business:

Property Tax Abatements
Tax Increment Finance District - Downtown
Tax Increment Finance District - Cass Street
Tax Increment Finance District - Medical District
Special Service Area - Downtown Core
Enterprise Zone - Des Plaines River Valley
New Markets Tax Credits
Small Business Administration - HUBZone Program
Illinois Department of Commerce & Economic Opportunity

Property Tax Abatements

Abatements of property taxes may be approved for business development or redevelopment that meets certain criteria. This includes the level of job creation, compensation of workforce, total investment in plant and capital, and business sectors being targeted by the County. At present, these target industries have been designated as highly desirable for recruitment: • Transportation & Logistics • Advanced Manufacturing • Food Processing • Life Sciences • Energy Due to the highly individualized nature of this program, prospective applicants are encouraged to inquire with the City to determine eligibility.

 

Tax Increment Finance District - Downtown

The City has designated portions of Downtown Joliet as a tax increment finance (TIF) district. This TIF district provides revenues that are utilized for funding economic development related activities downtown. This district has been in place since 2000 and has resulted in the incentivization of 12 redevelopment projects.

A TIF map identifies the physical boundaries of the district. Guidelines and a pdf fill-in form may be used to apply for TIF district assistance.

The strategic goals for redevelopment within Downtown Joliet are to expand market rate multi-family units and to encourage additional cultural and entertainment uses. Redevelopment projects meeting these goals will be given priority when considering incentive approval.

TIF CHANGES BEING PROPOSED: The City is considering changes to the current City Center District TIF District. These changes would include a reduction of territory associated with the current City Center TIF, and the creation of a new TIF to include downtown territory that has not experience redevelopment. The City Council recently approved the preparation of a plan and feasibility study. The plan for the amendment and new TIF may be accessed at the following links:

Tax Increment Finance District – Cass Street

The City has designated portions of the Cass Street Corridor as a tax increment finance (TIF) district. This TIF district provides revenues that are utilized for funding economic development related activities within the corridor. This district has been in place since 2011 and has resulted in a retail center project.

A TIF map identifies the physical boundaries of the district. Guidelines and a pdf fill-in form may be used to apply for TIF district assistance.

The strategic development goals within the Cass Street Corridor are to expand market retail opportunities, service opportunities and to rehabilitate commercial properties. Projects meeting these goals will be given priority when considering incentive approval.

 

Tax Increment Finance District – Medical District

The City has designated the commercial and industrial neighborhood immediately adjacent to Presence Saint Joseph Medical Center as a tax increment finance (TIF) district. This TIF district provides revenues that will be utilized for funding economic development related activities within the corridor. This district was designated as of January 2017 and is in the very early stages of being implemented.

A TIF map identifies the physical boundaries of the district. Guidelines and a pdf fill-in form may be used to apply for TIF district assistance.

The present strategic development goals within the Presence Saint Joseph Medical Center TIF are to expand commercial and office uses that will complement the existing medical district. Additional goals will be formulated as the City concludes an outreach effort with business and property owners in order to determine the perceived needs of stakeholders.

 

Special Service Area – Downtown Core

The City has enacted a special service area (SSA) to provide funding for redevelopment grant programs, marketing and other economic development purposes within the downtown and major business corridors entering downtown. The City collaborates with an independent organization (Joliet City Center Partnership) in managing activities that foster an improved and vital downtown.

An SSA map identifies the properties served by the special service area. Incentive programs available include Small Business Assistance Gants, Façade Improvement Grants, Interior Improvement Grants, and a Catalytic Incentive Package. A description of available Development Incentives Program details will serve as a resource for applicants. Contact information regarding these programs may be directed to Lauren Las at (815) 774-6066 or via lauren.las@jolietdowntown.com.

 

Des Plaines River Valley Enterprise Zone

The City of Joliet and four neighboring jurisdictions administer a State of Illinois designated enterprise zone. The Enterprise Zone Map identifies the portion of the community that has been for inclusion.

The State of Illinois offers incentives designed to encourage businesses to locate or expand operations within an enterprise zones. A summary of incentives are identified below:

Sales Tax Exemption

A 6.25 percent state sales tax exemption is permitted on building materials to be used in an Enterprise Zone. The Materials must be permanently affixed to the property and must be purchased from a qualified retailer.

Machinery and Equipment Consumables/Pollution Control Facilities Sales Tax Exemption

A 6.25 percent state sales tax exemption of 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. Eligibility is based on a business making an investment of at least $5 million in qualified property that creates a minimum of 200 fulltime-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 80 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 and 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 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 qualified property in a 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 increased employment over the previous year.

Contribution Deduction

Businesses may deduct double the value of a cash or in-kind contribution to an approved project of a Designated Zone Organization from taxable income.

The Des Plaines River Valley Enterprise Zone is managed by a Zone Administrator. Information pertaining to the Zone may be director to Mr. Dan Vera via dprvezone@aol.com.

 

New Markets Tax Credit

The U.S. Department of the Treasury – Community Development Financial Institutions Fund offers investors with federal tax credits to encourage lending to economically challenged areas. Through attractive interest rates and flexible lending provisions, private capital can flow to areas underserved by traditional lending. A portion of Joliet is authorized for the New Market Tax Credit Program. A Property Eligibility Mapping Tool can identify eligible properties. A summary of the program is contained in this video.

Loans and investments are made through Community Development Financial Institutions (CDFIs). Potential applicants may utilize the CDFI list for Illinois for potential funding partners.

 

Small Business Administration - HUBZone

The Small Business Administration offers a program for Historically Underutilized Business Zones (HUBZ). The program established preferences in federal contracting for eligible businesses within a HUBZone. A portion of Joliet is located within such a zone. A HUBZone Mapping Tool can identify eligible properties. Details and contact information may be found in the HUBZone summary.

 

Department of Commerce & Economic Opportunity

The Illinois Department of Commerce & Economic Opportunity is the State agency responsible for coordinating initiatives to expand business growth. A number of incentive and assistance programs are available. A Programs and Services Guide provides an indication of State economic development resources.