Business Incentives

Incentives Offered by Montgomery County Municipalities

Montgomery County Incentives

Enterprise Zone

Contact:
Montgomery County Enterprise Zone Administrator
Christine Daniels
217-532-9577

Potential benefits for eligible project applicants include:

Enterprise Zone Property Tax Abatement:
Full three-year abatement of real estate taxes on improvements to the property based on a project cost of less than $2 million, and a five-year abatement of real estate taxes on improvements to the property based on a project cost over $2 million to $4 million.

Enterprise Zone Sales Tax Abatement:
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 retail supplier.

Participation Loan:
State of Illinois loan amount up to $750,000 but not more than 25% of the total project cost. Rate will be 200 basis points below Wall Street Journal Prime rate, but in no event shall the Illinois Dept. of Commerce and Economic Opportunity’s rate be lower than 3 percent.

Job Tax Credit:
Tax credit on Illinois income taxes of $500 per eligible employee hired.

Investment Tax Credit:
Credit against Illinois state income tax of 0.5% for investment in qualified property. This is in addition to the regular 0.5% investment tax credit.

Revolving Loan Fund

Contact:
Montgomery County Economic Development Corporation CED Educator
Amanda Cole
217-532-3941

New and existing businesses that operate within Montgomery County limits can apply for a revolving loan for eligible projects that include:

Acquisition of land, buildings, and fixed equipment,
Working capital and inventory,
Site preparation and construction, reconstruction, or installation of buildings and fixed equipment,
Clearance and demolition, removal or rehabilitation of buildings, and improvements.

Financial institutions can request Revolving Loan Funds for specific projects for parties they represent. Requests between $5,000 and $50,000 will be considered. However, the RLF board can increase the maximum participation amount up to 33% of the total project.

The Revolving Loan Fund interest rate is a fixed 2% rate for the duration of the loan plus the participating financial institution’s rate that can be up to 4% above the RLF rate on the Revolving Loan Fund portion of the loan.

Rural Renewal County

Contact:
Montgomery County Economic Development Corporation Executive Director
Heather Hampton+Knodle
217-851-4332

Montgomery County is designated as a Rural Renewal County which means that employers can receive up to $2,400 in federal tax credits for each employee they hire who is a Montgomery County resident between the ages of 18 and 39. Employers need to complete IRS Form 8850 and Dept. of Labor Employment and Training Administration Form 9061 to be eligible for the tax credits. The forms must be completed, signed and dated on the day the job offer was made and submitted to the Illinois Department of Employment Security for verification before within 28 days of the employee starting work at the place of business. Employers elect to claim the tax credits by attaching IRS Form 5884 to their federal tax return.

For additional information on incentives available in Montgomery County, please contact County Coordinator Christine Daniels, 217-532-9577, or Montgomery County Economic Development Corporation Executive Director, Heather Hampton+Knodle, 217-851-4332.

Incentives Offered by Montgomery County Municipalities

The Village of Coalton
Enterprise Zone application in progress
Contact: MCEDC, (217) 851-4332

The City of Coffeen
Enterprise Zone
Contact: City Clerk Carolyn Cooper, (217) 534-2216

The Village of Farmersville
Tax Increment Financing District (TIF)
Contact: City Clerk, (217) 227-4164

The Village of Fillmore
For businesses, some breaks on water and sewer services
Contact: Linda Williams, Village Clerk, (217) 538-2041

The City of Hillsboro
Enterprise Zone, Municipal Revolving Loan Fund, 1-Year Free Water and Sewer for Retail Businesses Generating Local Retail Tax
Contact: David Booher, City Clerk, (217) 532-5566

The City of Litchfield
TIF District, Enterprise Zone, Municipal Revolving Loan Fund, Economic Incentive Program for car dealers, Other incentives being formulated.
Contact: Tonya Flannery, Economic Development Director, (217) 324-4212

The City of Nokomis
Enterprise Zone application in progress
Contact: Pam Burdzilauskas, City Clerk, (217) 563-2514

The Village of Raymond
Options for Free Water and Sewer Connection and Service Based on Number of New Jobs Created, Application for Enterprise Zone in Progress
Contact: Yvonne Martin, City Clerk, (217) 229-4516

The Village of Schram City
Enterprise Zone
Contact: Bernard Groves, Mayor, (217) 532-3449

The Village of Taylor Springs
Enterprise Zone
Contact: Cindy Laurent, Village Clerk, (217) 532-3354

The Village of Wenonah
Enterprise Zone application in progress
Contact: MCEDC, (217) 851-4332

State Resources and Information

The State of Illinois offers several incentives and services for businesses. Additional information on incentives and regulations governing business operations in the State of Illinois can be found at the following links: