Illinois offers a wide variety of incentives aimed at fostering economic development, job creation, and business growth.  The state’s incentive programs are designed to attract new businesses, support expanding companies, and encourage innovation across sectors such as manufacturing, technology, agriculture, and renewable energy.  Below are some of the key incentive programs available to businesses in Illinois.

Illinois Economic Development for a Growing Economy (EDGE) Tax Credit

Overview

The EDGE Tax Credit is a performance-based program aimed at encouraging businesses to create jobs and make capital investments in Illinois.  This incentive is particularly beneficial to companies that are relocating to Illinois or expanding their operations.

Eligibility

• Businesses must create a minimum number of new jobs and make a qualifying capital investment.

• The business must demonstrate that the incentive is critical to its decision to expand or relocate to Illinois.

Incentive Value

• A tax credit of up to 100% of the state’s income tax liability on new employees' wages for up to 10 years.

• The amount of the credit depends on the number of jobs created, the wages offered, and the location of the business.

Application Process

Businesses must apply through the Illinois Department of Commerce and Economic Opportunity (DCEO) and submit an application that includes a detailed business plan and job creation projections.

Illinois Research and Development (R&D) Tax Credit

Overview

The Illinois R&D Tax Credit encourages businesses to invest in innovative research activities within the state.  This credit is designed to help offset the cost of R&D and stimulate technological advancements.

Eligibility

• Businesses must conduct qualified R&D activities in Illinois.

• Eligible activities include the development or improvement of products, processes, or software.

Incentive Value

• A credit equal to 6.5% of qualified R&D expenditures for businesses performing R&D in Illinois.

• The credit can be applied against the company’s state income tax liability.

Application Process

Businesses must submit an R&D credit application with the Illinois Department of Revenue (IDR), detailing their R&D activities and qualifying expenditures.

Illinois High Impact Business Program (HIB)

Overview

The HIB Program provides tax incentives and other support to businesses that are investing significantly in the state.  The program is designed to encourage job creation and capital investment in economically distressed areas.

Eligibility

• Businesses must be located in an economically distressed area or an opportunity zone.

• Businesses must create at least 500 new full-time jobs or make a capital investment of at least $12 million.

Incentive Value

• Eligible businesses can receive sales tax exemptions on equipment purchases, property tax exemptions, and investment tax credits.

• The program also offers utility rate reductions for eligible businesses.

Application Process

Applications are submitted through DCEO, which reviews the business’s proposed investment, job creation, and community impact.

Illinois Film Tax Credit

Overview

The Illinois Film Tax Credit is designed to attract film, television, and digital media productions to Illinois.  This program offers tax credits to offset production costs and encourage investment in the local economy.

Eligibility

• Productions must spend at least $100,000 in Illinois on qualified expenses, including wages, set construction, and equipment rentals.

• The production must be primarily filmed in Illinois.

Incentive Value

• A tax credit of 30% of the production's qualifying expenditures in Illinois, with an additional 15% for expenses incurred in economically disadvantaged areas.

• The credit can be applied against the production’s Illinois income tax liability.

Application Process

Producers must apply to the Illinois Film Office and submit a detailed budget and spending plan to ensure compliance with the program’s guidelines.

Illinois Enterprise Zone Program

Overview

The Illinois Enterprise Zone Program is aimed at encouraging businesses to invest in designated economically distressed areas of the state.  The program offers a variety of tax incentives and other benefits to businesses that create jobs and make capital investments in these zones.

Eligibility

• Businesses must operate in one of Illinois' designated enterprise zones.

• The business must create jobs and meet certain investment criteria.

Incentive Value

• Sales tax exemptions on building materials and equipment purchases.

• Property tax abatements and income tax credits for job creation.

• The amount of the tax benefits varies depending on the business's investment and the location within the zone.

Application Process

Businesses must apply through the local enterprise zone administrator, who reviews the application and determines eligibility.

Illinois Property Tax Assessment Freeze for New or Expanding Businesses

Overview

The Illinois Property Tax Assessment Freeze program provides property tax relief to businesses that invest in new facilities or expand existing operations.  This incentive is designed to reduce the financial burden on companies and encourage investment in real estate.

Eligibility

• Businesses must make a significant capital investment in a new or existing facility.

• The property must be used for business purposes and must create new jobs.

Incentive Value

• Businesses can receive a freeze on property tax assessments for up to 12 years.

• The freeze applies to the increased property value due to new investments.

Application Process

Businesses must submit an application to IDR or the local taxing authority, providing details about the property and the investment.

Illinois Clean Energy Tax Credit

Overview

The Illinois Clean Energy Tax Credit incentivizes businesses to invest in renewable energy and energy-efficient technologies. This program helps reduce energy costs and environmental impact while promoting sustainable business practices.

Eligibility

• Businesses must install or operate renewable energy systems, such as solar panels, wind turbines, or energy-efficient technologies.

• The system must be located and operational within Illinois.

Incentive Value

• The credit is up to 25% of the cost of qualifying renewable energy systems, with a maximum credit of $250,000 for each project.

• The credit is applied against the business's Illinois income tax liability.

Application Process

Businesses apply through IDR and must submit documentation proving the installation of renewable energy systems and related expenses.

Advantage Illinois Program

Overview

Advantage Illinois is a financial assistance program designed to help small businesses obtain funding through loans and grants.  The program is aimed at encouraging business expansion, job creation, and the development of underserved communities.

Eligibility

• Businesses must be located in Illinois and operate in industries such as manufacturing, technology, and retail.

• The business must demonstrate the need for financial assistance to support growth or job creation.

Incentive Value

• The program provides access to low-interest loans and grants for business expansion and development.

• Financial assistance amounts vary depending on the project and business need.

Application Process

Businesses must apply to DCEO and submit documentation of their financial needs, business plans, and job creation projections.