Tax Increment Financing
A Tax Increment Financing (TIF) is a method of facilitating development or redevelopment of a certain area by using future property tax revenues --realized from taxes generated only from the TIF District--to pay for necessary public improvements. The area designated for development or redevelopment is called a "TIF District".
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 I-88 West region offer nearly a dozen specific TIF districts throughout Sterling, Rock Falls, Dixon, and other areas. Contact us for assistance on whether this program would work for your project.
For more information:
Illinois Department of Commerce & Economic Opportunity
Bureau of Business Development
620 East Adams,
Springfield, Illinois 62701
Tel 217-785-6193
TDD 800-785-6055
Recovery Zone Bonds may be used to finance certain purposes and properties within designated “recovery zones” and are used as another method of facilitating development or redevelopment of a certain area. There are two types of Recovery Zone Bonds: Recovery Zone Economic Development Bonds (RZEDB) and Recovery Zone Facility Bonds (RZFB). RZEDB’s are issued for public or governmental purposes in which the interest is taxable; however, the issuer receives a cash subsidy from the U.S. Treasury equal to 45% of the total interest payable to bond owners. RZFB’s are issued for private purposes in which the interest is tax exempt; however, there is no cash subsidy from the U.S. Treasury. RZFB’s also tend to offer lower interest rates.
Recovery Zone Bonds can also be utilized in connection with Tax Increment Financing. Contact us for information on specific recovery zone areas, ways that Recovery Zone Bonds can be utilized, or for assistance on whether this program would work for your project.
Recovery Zone Allocation Available:
- Lee County Recovery Zone Economic Development Bond: $2,484,000
- Lee County Recovery Zone Facility Bond: $3,726,000
- Whiteside County Recovery Zone Economic Development Bond: $5,473,000
- Whiteside County Recovery Zone Facility Bond: $8,210,000
