Economic Development Programs

Enterprise Zone Programs

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.

• Building Materials Sales Tax Exemption Contractor Form

* 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.

View an interactive map of special districts. 

Tax Increment Finance (TIF) Programs

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

• Redevelopment Incentive Program
• Storefront Improvement Program

Downtown Refresh (Proposed Program)

The City of Champaign is developing Downtown Refresh, a new reimbursement grant program to support storefront and customer-facing interior improvements in downtown Champaign. A draft program will be presented to City Council on April 14, 2026 at 7 p.m. in City Council Chambers at 102 N. Neil Street, Champaign IL.

New & Growing Business Programs (Rounds 1-2 Complete)

The City of Champaign offers competitive reimbursement programs to help start and grow local businesses, with a focus on supporting minority- and women-owned businesses. Across the first two rounds, businesses received $10,000 – $20,000 in reimbursement awards that supported start-up costs, expansion, and job creation. Awardees worked with the Small Business Development Center (SBDC) to strengthen their business plans and operations. An online session for Round 2 was held on September 25 (recording).

A third round of this program may be considered in Fall 2026. Interested applicants are encouraged to begin preparing early. Strong applications include a clear business plan with emphasis on market and financial analysis, recent Small Business Development Center advising, and defined use of funds for startup or expansion. Applicants are encouraged to meet with the SBDC, use Champaign Public Library business resources, and download a sample business plan outline.

These program consist of a competitive application process (applications do not guarantee funding), reimbursement-based funds (no upfront funding is provided), a one-year period to complete eligible purchases, and SBDC advising. Startups or businesses that have operated for less than two years, employ fewer than three full-time equivalent employees, and which generated less than $250,000 in annual revenue should apply for the New Business Program. Businesses that have operated for more than two years, employ fewer than 25 full-time equivalent employees, and which generate less than $2 million in annual revenue should apply for the Growing Business Program.

All applicants must be a registered client of the Small Business Development Center; be in good standing with the City, State, and Federal government; applicants cannot receive more than $20,000 or multiple awards within five years; certain business types are not eligible (e.g., franchises, liquor stores, cannabis dispensaries, tobacco/vape shops).