City Incentives
City Incentives
The City of Champaign prides itself on being business-friendly and proactive in attracting new developments that will grow our local economy. The City offers several programs in targeted districts and throughout the entire city. In addition, Planning and Development staff are always available to discuss opportunities to engage in public/private partnerships.
Enterprise Zone
The City of Champaign/Champaign County Enterprise Zone is a state-authorized tool to stimulate economic growth and neighborhood revitalization in economically depressed areas. Projects taking place within the Enterprise Zone (view an interactive map to determine eligibility) and that meet the requirements of one of the six programs below may become eligible to access these benefits. In addition, there are two benefits to the Enterprise Zone.
The first benefit offers an abatement of the City of Champaign, Champaign County, Champaign Park District, Champaign-Urbana Mass Transit District, Parkland College (on commercial projects), and City of Champaign Township property taxes on the increased value of the project over the determined number of years (based on the specific program used).
The second benefit offers Sale Tax Exemption Certificates for use in the purchase of all permanent building materials purchased in the state of Illinois for use on the project.
The projects must meet the criteria for one of the programs below to access these benefits.
- Targeted Neighborhood Improvement Program – Rehabilitation or new construction of owner and renter-occupied single-family housing
- Affordable Multifamily Housing Program – Rehabilitation and new construction of qualifying multi-family housing projects.
- Commercial District Enhancement Program – Commercial rehab and new construction projects
- Employment Expansion Program – Employment and office projects generating new or retained employees
- Historic Structure Rehabilitation Program – Additional benefits for properties on the Local and National Register of Historic Places
- Tourism Development Program – New and Rehab of properties generating significant tourism traffic
Each project must complete a master application from one of the programs above. In addition, as contractors and subcontractors are awarded on the project, the project applicant must submit this Contractor Form for Sale Tax Exemption Certificates to be issued to each contractor. NOTE: each entity purchasing building materials for the project must receive its own certificate.
* NOTE: All contractors who take advantage of the Sales Tax Abatement portion of the program are required to submit an Illinois EZ-1 form to the Illinois Department of Revenue. For more information on state reporting of incentives, visit the Department of Revenue website.
Tax Increment Financing (TIF)
Tax Increment Financing is a local tool that aids in redeveloping existing buildings and infrastructure within the TIF district. The City currently has five TIF Districts that collect property tax revenue from the increased value of new projects into a special fund that reallocates the money back to the districts through incentive programs. Below are programs available in any of the City’s TIF Districts (access interactive map to view TIF Districts). Learn more about TIF Districts
Applications
City of Champaign Diversity Advancement Program (CDAP)
The City of Champaign Diversity Advancement Program (CDAP) is a program designed to strengthen the use of businesses owned by women and racial/ethnic minorities. In addition, other identified socially disadvantaged groups as defined in City purchasing and contracting policies and to build capacity for these businesses through mentoring and training and to develop and sustain a diverse pool of qualified businesses used by the City of Champaign.
All successful applicants of City incentives will be required to fulfill the terms of the program by making a good faith effort to expand opportunities within their project. To help achieve these goals, the City now makes a Certified CDAP Vendor List available, which can aid a property owner in finding qualified minority or women-owned businesses. To learn more about this program, visit the CDAP website.
Visit the City’s Online Interactive Map to view Economic Development Districts.