Bureau/Putnam Enterprise Zone

On July 1, 1987, the Governor designated a ten (10) square mile area in Bureau and Putnam counties as an Enterprise Zone. The Bureau/Putnam Area Enterprise Zone was initially set to expire in 2007, however, the City of Princeton has received state approval to extend the Zone until 2017. Depending on the project, the Enterprise Zone can be expanded to include a site not within the current Zone.

The following are some of the key benefits of the Bureau/Putnam Area Enterprise Zone:

• Property Tax Abatement - A nearly 100% abatement for 10 years on industrial/commercial real property improvements for new construction as well as renovation and rehabilitation requiring a building permit.
  
  
  
  
  
• Sales Tax Exemption - a local sales tax deduction of 1.75% and a state sales tax deduction of 5.00% on building materials used for real property construction, rehabilitation, and renovation within the Zone.
• Investment Tax Credit - a state investment income tax credit of 0.5% is allowed for qualified property in a Zone. Qualified property includes machinery, equipment and buildings. This credit may be carried up to 5 years.
• Job Tax Credit - This allows a business a $500 credit on Illinois income taxes for each job created in the Zone for which a certified dislocated or economically disadvantaged individual is hired. The credit may be carried forward for up to 5 years. A minimum of 5 eligible employees must be hired to qualify for the credit.
• Utility Tax Exemption - a state utility tax exemption on gas, electricity and the Illinois Commerce Commission (ICC) administrative charge located in the Zone. Eligibility is contingent upon the business making a $5 million investment which causes the creation of 200 full-time equivalent jobs or a $20 million investment for the retention of 1,000 full-time jobs in Illinois. A business must make application to and be certified by DCEO for the state utility exemption. The exemption will be granted for a period of 5 years at 100% of state taxes on gas, electricity, and the ICC administrative charge.
• Tax Exemption Enterprise Zone Machinery and Equipment/Pollution Control Facilities Sales - a 6.25% sales tax exemption is available on purchases of tangible personal property to be used or consumed in the manufacturing or assembly process or in the operation of a pollution control facility. Eligibility is contingent upon business making a $5 million investment causing the creation of 200 full-time equivalent jobs in an Illinois Enterprise Zone, or a $40 million investment causing the retention of 2,000 full-time equivalent jobs in an Illinois enterprise zone or an investment of $40 million causing the retention of 90% of the existing jobs. Application must be made through DCCA documenting investment and that the criteria of job creation or retention have been met.
  

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Property Tax Rebate Program

Eligible Properties:  Real property within the City of Princeton containing commercial buildings, which have been renovated, rehabilitated, or expanded. The rebate shall pertain only to those parcels upon which a commercial business operation is operated which results in the payment of Retailer's Occupation Tax as a result of activities conducted on the property.

Property Tax Rebate Conditions:  The property tax rebate will only apply to the City portion of the tax bill. Recipients must receive formal written approval from the City before being eligible for the rebate. If the business owner is not the property/building owner, then a joint application is required.

In order for rebates to be issued, property owners must pay the tax bill in full and present a copy of their property tax statement, a receipt demonstrating the tax bill has been paid, a summary of invoices for the project being presented, and proof that invoices have been paid. The City reserves the right to inspect any project upon final completion.

Term:  Only projects started after January 1, 2004 are eligible for the rebate program. The property owner has up to 10 years to realize the full rebate amount.

Maximum Rebate:  25% of the actual amount expended, up to a maximum of $2,500.

City of Princeton Tax Rebate Conditions: : The cumulative annual rebates distributed under the program shall not exceed one percent (1%) of the total ad valorem taxes received by the City in any given year.

Eligible Costs:  Costs related directly to the renovation, rehabilitation, or expansion of commercial buildings within the City of Princeton.

Download Property Tax Rebate Application Form

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City of Princeton Revolving Loan Fund

The City of Princeton has direct, low interest loans available through its Revolving Loan Fund. This pool of money has been set aside by the City in order to provide a source of gap financing for expansion efforts of local industry and new industries wishing to locate within the community.

Interest Rate:  3%
Term:  10 year maximum
Maximum Loan:  $200,000
Job to Loan Ratio:  1 : $15,000.00
Leverage Ratio:  3 : 1 ($3 private money to $1 RLF money)
Eligible Costs:  Land, Buildings, equipment, inventory, working capital
Job Creation/Retention:  51% of jobs created/retained must be low-moderate family income employees.
Eligible Area:  Business located within the City of Princeton corporate boundaries.



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State of Illinois - Grants and Low-interest Loans

Targeted financial assistance is also offered through the State of Illinois with grants and competitive financing to qualifying firms.

   Teresa Kurtenbach
   Illinois Department of Commerce and Economic Opportunity, Northwest
   1830 Second Avenue, Suite 200
   Rock Island, IL 61201-8038
   Phone: (309) 794-1769


Upper Illinois River Valley Development Authority (UIRVDA)

UIRVDA was created by action of the Illinois General Assembly and the Governor�s Office. UIRVDA is a general development agency for the counties of Bureau, Grundy, Kendall, LaSalle, Marshall and Putnam whose mission is to promote and enhance development within these counties in Illinois by means of unique financial and supportive powers. These financial and supportive powers enable it to issue taxable, tax-exempt bonds and moral obligation bonds for the purpose of developing, constructing, acquiring or improving properties or facilities for business entities locating in or expanding within the territorial jurisdiction of the Authority.

The Upper Illinois River Valley Development Authority has two general program categories: Economic Development Revenue Bonds and local Government Assistance Bonds. The Economic Development Revenue Bond Program was established to offer taxable or tax-exempt bond financing for manufacturing or commercial enterprises. Bond proceeds are loaned to borrowers to finance projects in the Authority�s jurisdiction, which facilitates the economic development of the region or works toward the retention of existing business and industry. The maturity of both types of bonds is flexible and can range from ten (10) to thirty (30) years. The bond interest rate may be fixed or variable and depends on current market rates. Idea projects for consideration should be related to job creation, retention or expanded economic activity.

Examples Include:

• New Construction
• Machinery or Equipment
• Industrial Development
• Solid Waste Pretreatment
• Housing or Residential Facilities
• Acquisition of Land/Buildings
• Renovation of Existing Facility
• Pollution Control
• Waterfront Improvement
  

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Electric Demand Rate Discount

All newly established commercial and industrial located within the City of Princeton corporate boundary may be eligible for a temporary reduction in their demand rate if the business requires a 200 amp service and draws 75 kW in the first six months. For every 5 full time employees there will be a discount on demand charges of 6.25% up to a 50% discount for 40 full time employees. The discounted rate will be held for one year and will phase out uniformly over 5 years. For more information, please refer to Chapter 13, Article II, Section 13-27, Paragraph 6 of the City Code Book.