Business Incentives
If you want to locate or expand your business in Lincoln, you may be eligible for any of a number of local and state business incentives.
But navigating all the government benefits can be tricky and time-consuming.
LEAD CEO Andrea Runge and the Board can make it easy for you.
Schedule a call with Andrea today and she’ll help you get the best incentives for your business in Lincoln, the hub of central Illinois.
Local Incentives
Opportunity Zone
Lincoln, IL, Opportunity Zone - map
A portion of Lincoln’s northwest side has been designated as an opportunity zone, an economically distressed area where new investments may be eligible for preferential tax treatment.
Opportunity zones are a tool for economic development, designed to connect low-income communities with private investment capital that leads to economic growth and job creation.
Investors can defer tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until December 31, 2026, or the date on which the QOF investment is sold or exchanged, whichever comes first. The length of time the investment is held in the QOF determines the tax benefit to the investor.
Enterprise Zone
Lincoln, IL, Enterprise Zone - map
Through state and local tax incentives, regulatory relief, and improved governmental services, the Illinois Enterprise Zone Program stimulates economic growth and neighborhood revitalization.
Enterprise zone benefits include a number of credits, deductions, and exemptions:
Reduced building permit fees
Property tax abatements
Jobs tax credit
Investment tax credit
Dividend income deduction
Interest deduction
Contribution deduction
Machinery and equipment/pollution control facilities sales tax deduction
Building material sales tax exemption
Utility tax exemption
Enterprise zone details - Logan County
Enterprise zone details - IL DCEO
Lincoln Courthouse Square Historic District
Lincoln, IL, Courthouse Square Historic District
Since 1985, a 10-block area around the Logan County Courthouse has been listed on the National Register as a historic district.
This designation allows qualified projects to apply for federal and state historic district tax credits. These tax credit programs, available until December 31, 2023, create jobs, stimulate local economies, and revitalize historic structures and neighborhoods.
Tax Increment Financing District (TIF)
Lincoln, IL, Tax Increment Finance (TIF) District - map
Lincoln’s Tax Increment Finance District is located in the central downtown to encourage new economic development and job creation which may not have occurred otherwise.
Increased property tax revenues generated by projects located within the district can be used for costs associated with the development or redevelopment of those properties. Learn more about Lincoln’s specific TIF guidelines below.
State Incentives with Enhanced Credits in Lincoln
Lincoln, IL, underserved area map
As an underserved area, projects locating in Lincoln can receive enhanced credits in the state programs listed below.
Economic Development for a Growing Economy (EDGE) Tax Credit Program
Businesses that meet certain job creation and project investment requirements may be eligible for annual corporate tax credits through Illinois’ EDGE Tax Credit Program.
Qualifying businesses can apply for tax credits in an amount equal to 50% of the income tax withholdings of new jobs created in the state. This percentage increases to 75% if the business expansion project is located in an “underserved area” census tract.
Data Center Investment Tax Exemptions and Credits
Qualifying Illinois data center owners and operators are offered exemptions from a variety of state and local taxes under the Data Center Investment Tax Exemptions and Credits programs.
New and existing data centers can qualify for a tax credit of 20% of wages paid for construction workers for projects located in underserved markets, like those identified within Lincoln based on their capital investment.
Data center investment tax exemptions and credits details
Illinois Apprenticeship Education Expense Tax Credit Program
Educational expenses associated with qualified apprentices are eligible for a tax credit under this program.
By working with qualified apprentices, employers may receive a credit of up to $3,500 per apprentice. Employers or apprentices who reside or conduct business within the underserved areas of Lincoln are eligible for an additional credit of $1,500 per apprentice. The Department caps the total tax credits at $5 million per calendar year, so early, complete applications are imperative.
Illinois apprenticeship education expense tax credit program details
Additional Illinois Resources
Lincoln businesses can qualify for additional incentives and tax credits offered throughout Illinois. The Illinois Department of Commerce and Economic Opportunity lists details on incentives, tax credits, grants, and early-stage investment.
Want to learn how your business can move to or expand in Lincoln and benefit from incentives like these?
