Taxes & Incentives

Illinois EDGE and Advantage Illinois Participation Loan Program provide unbeatable incentives

State Incentive Programs

The State of Illinois Department of Commerce and Economic Opportunity EDGE Tax CreditE program provides annual corporate tax credits to qualifying businesses which support job creation, capital investment and improve the standard of living for all Illinois residents. The non-refundable income tax credit is 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. Learn More.
Greater Peoria area businesses also benefit from the Advantage Illinois Participation Loan Program. By working with the state’s banking community and venture capitalists the program helps entrepreneurs and small businesses start up, expand and create new jobs at a faster rate. Learn More.

Tailoring to Your Business Needs

Revenue Bonds and Vouchers

Businesses in the Greater Peoria Region are also supported by The Tri-County River Valley Development Authority (TRVDA) Industrial Revenue Bonds. This program offers qualifying companies with tax-free (state and federal) bond financing. Learn More

Greater Peoria offers the Illinois Manufacturing Innovation Voucher Program powered by the Illinois Manufacturing Excellence Center (IMEC). The program supports small and mid-sized manufacturers, with 5-500 employees, to embrace new technologies in their products and processes. The Illinois Manufacturing Innovation Voucher will award up to $25,000 in match funding to:

• Accelerate technology adoption
• Identify and implement productivity improvements
• Overcome organizational growth barriers

Learn More.

Greater Peoria is in Foreign Trade Zone 114, which provides over two million square feet of warehousing and distribution space available for general-purpose zone usage. Operating within these zones comes with numerous benefits such as lower duties, cost avoidance, staging and showcasing capabilities, and assembly cost savings.

Innovate and explore best practices

Research & Development Tax Credit

Boost productivity through research and development.
Greater Peoria businesses can take advantage of the R&D tax credit. Illinois’ program is modeled after the federal R&D tax credit, including the federal definition of qualifying research. It is a non-refundable tax credit equal to 6.5% of qualifying research expenditures that exceed the baseline amount:

• Three year average of R&D costs in Illinois
• If the taxpayer incurred no qualifying expenditures during a base period year, the qualifying expenditures for that year are zero, even if the taxpayer was not in existence or conducting any business in Illinois during that year
• If the taxpayer was doing business in this state for only part of a base period year, the qualifying expenditures for that year shall be equal to the qualifying expenditures actually incurred, multiplied by 365, and divided by the number of days in the portion of the taxable year during which the taxpayer was doing business in Illinois

Learn More.

Get more tax breaks in specific districts in our region

Tax Increment Financing Districts

Tax Increment Financing, or TIF, is a public financing method that is used as a subsidy for redevelopment, infrastructure, and other community-improvement projects. These districts dedicate property tax revenues generated within the TIF for improvements within the district to encourage new economic development and job creation. Funds may be used for costs associated with the development or redevelopment of property within the TIF, allowing blighted, declining and underperforming areas to become viable again, and allowing these areas to compete with vacant land at the edge of urban areas. Projects in TIF districts vary, but could include:

• Redevelopment of substandard, obsolete, or vacant buildings
• Financing public infrastructure improvements, including streets, sewer, water
• Cleaning up polluted areas
• Improving the viability of downtown business districts; rehabilitating historic properties
• Providing infrastructure needed to develop a site for new industrial or commercial use

Explore Greater Peoria’s 21 TIF Districts on our interactive map. Simply add the layer of the TIF District you want to see.

Explore incentives unique to some of our local communities and counties

Community Specific Programs

Peoria County Government Assistance Programs: Through its Government Assistance Program, Peoria County offers 3 levels of assistance through a MICROLOAN (up to $35K or 80% of the project), a GAP LOAN (up to $150K or 50% of the project), or a MACRO LOAN ( up to $600K or 33% of the project). The interest rate of the loans are generally fixed at 3% below the prime rate, with a minimum rate of 3%.
Learn More

• The City Of Peoria’s Industrial Revenue Bond (IRB): This program is a form of municipal bonding that is designated for use by private manufacturers. Projects within an Enterprise Zone are given preference for IRBs. By providing a reduced financing rate, an IRB gives small manufacturers access to capital (both locally and in national markets) that they ordinarily might not have. IRBs can be issued for amounts between $1.5M and $10M, and the interest rate is generally 2.5-3% below prime. These loans can be at fixed or variable rates and usually have terms of 20 years. Unlike many other state and locally-run programs, IRBs can fund 100% of costs. These costs can include the purchase of land, buildings, and new machinery. Applicants must secure the legal opinion of certified bond counsel
  Learn More.
• Morton Microgrant: This program provides small grants of up to $5,000 to for-profit business owners interested in starting, moving, or growing a business in Morton. Funds can be used for property improvement or acquisition, equipment purchases, inventory and working capital, and rent subsidies
  Learn More.

Explore incentives and business support resources unique to our state

Illinois Business Assistance Programs and Resources

Illinois offers businesses seeking to locate or expand their operations numerous financial and non-financial assistance such as business development and job creation incentives, capital grants, workforce assistance, and site selection assistance among others. To learn more about these programs and how to access them click here.