INCENTIVES

Illinois Capital Access Program

The Illinois Capital Access Program (CAP) is designed to encourage financial institutions to make loans to small and new businesses that do not qualify under conventional lending policies. CAP is a form of loan portfolio insurance, which provides additional reserve coverage to the lender on loan defaults. By participating in CAP, lenders have available to them a proven financing mechanism to meet the needs of financial institutions and Illinois small businesses.


Business Development Public Infrastructure Program

Provides low-interest financing to units of local government for public improvements on behalf of businesses undertaking expansion or relocation projects that meet the program criteria and demonstrate great potential for creating and retaining jobs. The infrastructure improvements must be made on public property and must directly result in the creation or retention of private sector jobs.


Enterprise Zone Program

Enterprise Zones offer a number of state and local tax incentives to businesses that make investments to create or retain jobs in any of the 92 certified zones located in communities throughout the state. Eligibility varies according to specific incentive requirements.


Enterprise Zone Financing Program

This financing mechanism is a derivative of the Participation Loan Program and is designed to encourage growth and neighborhood revitalization in Illinois Enterprise Zones. DECO can provide below-market subordinated debt to companies located in or expanding in an Illinois Enterprise Zone.


High Impact Business Program

Provides investment tax credits, a state sales tax exemption on building materials, an exemption from state tax on utilities and an expanded state sales tax exemption on purchases of personal property used or consumed in the manufacturing or assembly process or in the operation of a pollution control facility. Businesses located within Enterprise Zones are not eligible for this program.


Tax Increment Financing Program

A municipal financing technique that may be used to renovate declining areas or redevelop blighted areas while improving the tax base of such areas. The program allows a municipality to acquire and prepare property for redevelopment and make needed public (and some private) improvements.


Illinois EDGE (Economic Development for a Growing Economy)

EDGE provides tax credits to qualifying businesses that create new jobs and make capital investments in Illinois. Credits are calculated from the personal income tax collected on salaries paid to employees in the new jobs created, which may be taken as a non-refundable tax credit against corporate income taxes over a period not to exceed 10 taxable years. To qualify, firms must make an investment of at least $5 million in capital improvements and create a minimum of 25 new jobs, although demonstrated public benefit may result in waiver of these requirements.


Illinois Technology Enterprise Development and Investment Program

Provides investments, loans, or qualified security investments to or on behalf of young or growing businesses, in cooperation with private investment companies, private investors or conventional lending institutions. Investors also assume a portion of the investment loan or financing for a business project. New or emerging businesses are also eligible through financial intermediaries as they commercialize advanced technology projects.


Illinois Technology Enterprise Centers Program (ITECs)

A statewide network of centers to assist entrepreneurs, innovators, and start-up firms in high-growth, high-technology sectors in furthering the technical or managerial skills of owners; aid ventures in locating financing, and help new companies with product development and marketing in support of new venture formation within the state.