Effingham County Incentives

 

 

Effingham Enterprise Zone

Type: Tax Abatement, Tax Exemption, Tax Credit, Interest Deduction

Administrator: City of Effingham

Program Description:

The Effingham Enterprise Zone was established in April, 1988, and has a life span of 30 years. Projects located within the zone boundaries are eligible for all zone benefits. Effingham's Enterprise Zone offers the following incentives.
Property Tax Abatement - 100% abatement on the increase to the base amount. (3 years for commercial projects and ten years for industrial projects)
Sales Tax Exemption on Building Materials - Full exemption (6.5%) on building materials incorporated into real property.
Building Permit Fees Waived - All building, electrical, and plumbing fees are waived for Enterprise Zone projects.
Investment Tax Credit - .5% credit is available for qualified property.
Jobs Tax Credit - $500 tax credit for each job created for which certified "economically disadvantaged" or "dislocated worker" is hired. A minimum of five workers must be hired to be eligible for credit.
Interest Deduction - Financial institutions are not taxed on the interest received on loans for Enterprise Zone projects.
Dividend Income Deduction - Individuals, corporations, trusts, and estates are not taxed on dividend income from companies doing substantially all their business within the Enterprise Zone.
Machinery and Equipment Sales Tax Exemption, Pollution Control Equipment Sales Tax Exemption, and Utility Tax Exemption - These are state incentives structured for large projects of $5 million and 200 jobs created or $40 million and 2,000 jobs retained.

 

City of Effingham Revolving Loan Fund

Type: Low Interest Loans

Administrator: City of Effingham

Program Description:

This is a City of Effingham program whereby low interest loans are available based on the project cost and the number of jobs being created. Typical terms have been a 3% fixed interest rate for five years based on $15,000 loaned per job created. These funds can also be used as a grant to assist a project with public infrastructure improvements based on $15,000 per job created.

 

SBA 504 Loan Program

Type: Fixed Rate Loan

Administrator: SCIRP&DC

Program Description:

This program is available through the South Central Illinois Regional Planning and Development Commission. The objective of the program is to assist small and medium-sized start-up and existing businesses in obtaining long-term, subordinated financing for fixed assets with a low down payment. Financing up to $1 million may be obtained at fixed rates for 10 - 20 years based on $15,000 per job created or retained.

 

 

Rural Business Initiative Loan Program

Type: Fixed Rate Loan

Administrator: SCIRP&DC

Program Description:

The South Central Illinois Regional Planning and Development Commission functions as an "intermediary lender" to provide local financial assistance to credit worthy businesses. The program is used in conjunction with a combination of business equity and conventional lending. A maximum of $250,000 can be loaned under the program with a fixed interest rate of 6.5% based on $25,000 loaned per job created or retained.

 

Title IX Loan Program

Type: Fixed Rate Loan

Administrator: SCIRP&DC

Program Description:

Similar to the Rural Business Initiative Loan Program except that the program can only be used in conjunction with industrial projects and the interest rate is fixed at 5.5%. Loan amounts are based on $15,000 per job created up to a maximum of $15,000 loaned.

 

 

 

 

 

Effingham County Economic Development Contact:

Todd Hull

Economic Development Director

City of Effingham

201 E. Jefferson

Effingham, IL 62401

(217) 342-5304

hulltodd@ci.effingham.il.us