For Businesses

TIF – Tax Increment Financing Tax Increment Financing

TIF is a tool used by municipalities to encourage development in areas where replacement or rehabilitation is desired. It effectively utilizes a portion of the future property tax value to finance or execute phases of a project, thereby decreasing costs for the developer. The City of Arcola currently maintains 2 active TIF Districts. Within these districts, the City offers various programs, including grants and tax rebates, funded through TIF, designed to assist new and existing businesses with capital improvement projects. For more specific information, please contact Bill Wagoner at 217-268-4966.

Local TIF Incentives:

  • New Construction – 60% Rebate of TIF Increment for Eligible Expenses
  • 20% Grant up to $25,000 for Existing Building Improvements
  • Energy Efficiency Improvements (Electric, HVAC, Lighting)
  • Property Acquisition
  • Rehabilitation or Renovation of Existing Public or Private Buildings
  • Infrastructure Improvements
  • Financing Costs
  • Studies, Surveys, and Plans
  • Marketing Sites within the TIF District
  • Professional Services (Such as Architectural, Engineering, Legal, and Financial Planning)
  • Demolition and Site Preparation
  • Construction of Affordable Housing


Storefront Façade Program – 1:1 Match up to $20,000

  • Repairs to Exterior Façades
  • Restoration of Storefronts and Architectural Elements
  • Masonry Repair
  • Cleaning of Building Exterior
  • Exterior Painting
  • Repairing, Replacing, Reconfiguring, or Installing Cornices, Entrances, Doors, Windows, Trim, Decorative Details, and Awnings
  • Sign Repair and Replacement of Non-Conforming Signs
  • Architectural Lighting
  • Landscaping and Streetscaping, and Other Repairs that Improve the Aesthetic Quality of the Building


Business District

A Business District ("BD" or "District") is a special financing area created by a municipality to encourage redevelopment within targeted areas of the community. This program enables municipalities to attract development on vacant properties and redevelop existing properties within a designated area. New business development will increase local services and amenities, expand employment opportunities, and boost sales and property tax revenues for the municipality and other taxing bodies. This economic development tool is highly flexible and allows municipalities to collect up to an additional 1.0% retail sales tax to fund any project that benefits the District. Business Districts enable municipalities to make and enter into all contracts necessary or incidental to the furtherance of a BD Plan, including payments to private developers for eligible business district project costs.


Douglas County Enterprise Zone 

The Illinois Enterprise Zone Program aims to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state through state and local tax incentives, regulatory relief, and improved governmental services. Businesses located or expanding in an Illinois enterprise zone may be eligible for the following state and local tax incentives:

  • State Incentives and Exemptions
  • Exemption on Retailers' Occupation Tax Paid on Building Materials
  • Investment Tax Credit of 0.5% on Qualified Property
  • Expanded State Sales Tax Exemptions on Purchases of Personal Property Used or Consumed in the Manufacturing Process or in the Operation of a Pollution Control Facility
  • Exemption on the State Utility Tax for Electricity and Natural Gas
  • Exemption on the Illinois Commerce Commission's Administrative Charge and Telecommunication Excise Tax Exemptions are available for companies that make minimum statutory investments that either create or retain a certain number of jobs.
To be eligible for these exemptions, businesses must apply to, and be certified by, the Illinois Department of Commerce. Local Incentives and Exemptions, in addition to state incentives, are also available. Each zone has a designated local zone administrator responsible for compliance and available to answer questions. To receive a Certificate of Eligibility for Sales Tax Exemption, contact the local zone administrator of the zone where purchased building materials will be incorporated. For more information on the Douglas County Enterprise Zone, please contact Brian Moody at 217-253-2552.