Tax & Operating Incentives

TAX INCENTIVES

Tax Increment Financing (TIF)

The City utilizes Tax Increment Financing (TIF) incentives for a variety of projects.  This can be an extremely lucrative incentive program for the right project.  Tax incentives include rebating of property taxes for up to 23 years for eligible costs.

TIF Boundaries click link

EDGE Tax Credit

Tax incentives may be available through the Economic Development for a Growing Economy Program (EDGE), in the form of tax credits against Illinois income tax liability up to a maximum of ten years.  It is anticipated that tax incentives available under EDGE will represent a 100 percent tax credit to the company calculated from the personal income tax collected on salaries paid to the employees in the new jobs created by the project.  

Illinois Replacement Tax Investment Credit Program

Firms in Illinois can receive an investment tax credit against Illinois Personal Property Replacement Income Tax for the purchase of qualified property, (including buildings and equipment) used in manufacturing, mining or retail businesses. The tax credit is equal to one-half of one percent (0.5 percent) of the adjusted basis of tangible new or used property with a useful life of four years or more.  
An additional 0.5 percent tax credit is available for any year in which the firm's base employment increases by one percent or more over the preceding year. If the increased employment is less than one percent, the additional credit will be reduced proportionately.

Sales Tax Exemption Manufacturing Equipment

Illinois provides the following major exemptions from sales/use taxes: (1) manufacturing machinery, as well as replacement parts and computers used to control manufacturing machinery;  (2) farm machinery; and (3) pollution control facilities-- any system, devices or appliance sold to prevent or reduce air and water pollution or pre-treat a potential pollutant.  The purchaser must be able to establish through adequate records that the exempt machinery or equipment used at least 50% of the time in a manufacturing/assembling process. 

Illinois Manufacturer’s Purchase Credit

Beginning September 1, 2004, qualifying manufacturers may earn a Manufacturer's Purchase Credit (MPC). The MPC is earned when a manufacturer purchases manufacturing or graphic arts machinery and equipment that qualifies for the existing sales/use tax exemptions. MPC may be used to pay state sales or use tax on future purchases of qualifying production-related tangible personal property.

All unused MPC expires the last day of the second calendar year following the year in which the original tax-exempt purchase was made. MPC may not be transferred to another party.

The MPC is equal to half of the 6.25% state tax that would have been owed if the purchase was not otherwise exempt.

Personal Property Tax

The State of Illinois does not tax personal property.  As a result, a developer or company will not be required to pay any personal property tax to the State.

OPERATING INCENTIVES

Job Training 

Administered by DCEO, the Employee Training Investment Program (ETIP) is a streamlined, cost-effective program to help Illinois workers keep their skills consistent with changing technologies and business processes.  Businesses benefit through increased productivity, reduced costs, improved quality and competitiveness.

ETIP provides grants that can reimburse companies for up to 50 percent of the cost of training their employees.  Employers may select the workers that will participate in the training.  Instructors may be plant workers, public education employees, private consultants, or others who possess the required instructional expertise.

Recruitment Assistance Program

In addition to ETIP grant funds, DCEO and the City of Maroa can coordinate a company’s workforce development efforts through the County’s Employment and Training Department.  The Department is conveniently located in nearby Litchfield, IL.  Funded through the Federal Workforce Investment Act, Macoupin County Employment and Training provides free or low cost outreach, recruitment, assessment and additional job training assistance to new or existing employers.  They can conduct job fairs and post ads in local newspapers to assist in the recruitment of skilled employees.  Macoupin County works in cooperation with the DCEO to ensure that the company is provided a customized and coordinated action plan for filling its employment needs which maximizes all available state, local and federal job tax credits and training funds.