Tax Increment Financing (TIF) District
Tax Increment Financing is an economic development tool utilized by the City of Chicago to provide financial assistance to businesses that are investing in parts of the city designated as blighted or in danger of becoming blighted. Funds are usually provided in conjunction with private development projects to build and repair roads and infrastructure, clean polluted land and put vacant properties back into productive use. Funds are generated through the growth of Equalized Assessed Valuation (EAV) of the designated properties over a period of 23 years. Businesses utilize these new revenues, typically generated by their own properties for specific purposes that are identified in redevelopment agreements. Terms for each agreement are subject to approval by the Community Development Commission and Chicago City Council. Within the City of Chicago’s boundaries, the Calumet Area Industrial Corridor includes a number of TIF Districts, including the following:
- Lake Calumet
- 126th/Torrence Avenue
- North Pullman
- Stony Island/Burnside
- South Chicago
- Commercial Avenue
- South Works
- Calumet River
To determine if a certain property is located within a TIF District, click the link below which directs you to the Chicago Department of Planning & Development’s GIS Zoning Map.
The following TIF-funded grant programs are available for eligible companies operating within the
Qualified TIF Districts:
Streamlined TIF provides access to valuable grants for the improvements of industrial, commercial, retail or residential mixed use properties. Within the ranges of $25,000 to $1,000,000, grants fund up to 25% of the renovation, expansion or redevelopment costs, including:
- Land acquisition, clearance and site preparation
- Certain environmental remediation measures
- Building rehabilitation and repair
- Signs or Awnings that permanently affixed to the building
- Rehabilitation and remodeling of existing tenant improvements
- Streetscaping and other public infrastructure
- Professional fees related to redevelopment projects
- Up to 30% of the application’s construction costs
TIF Works is in operation to fund directed workforce-training costs, including instruction, training supplies and materials and developing curriculum, for small to mid-sized companies operating from specific Tax Increment Financing districts. With the support of TIF Works, eligible businesses will obtain the ability to upgrade the skills of their new and existing workers, in order to improve performance and productivity, expand product lines and essentially gain new customers.
Small Business Improvement Fund (SBIF)
This program offers eligible, small industrial business or properties with 100 or less Full-Time employees in designated TIF Districts a grant up to $150,000 maximum to reimburse 50% of costs for such qualified, permanent building improvements:
- Facade repairs
- Masonry repairs
- Roof improvements
- Building systems (HVAC, Electrical, Plumbing)
- Permanent Signage
- Environmental Remediation
- Land purchase (business expansion or parking)
- ADA compliance improvements
Enterprise Zone Program
An Enterprise Zone is a specific area designated by the City of Chicago and certified by the State of Illinois to receive tax incentives and other benefits that stimulate economic activity. Existing businesses or businesses relocating to one of Chicago’s six Enterprise Zones can lower operating expenses and increase profits by taking advantage of several incentives offered through the program, including a sales tax exemption on building supplies, a real estate transaction tax exemption and a jobs tax credit. Below is a link to a map to the boundaries of Enterprise Zone #3, which includes the Calumet Industrial Corridor in the City of Chicago.
Enterprise Zone #3
Click Here for Zone Map
Click Here for Zone Info
For more information, please call Beth Dybala, Director of Economic Development, at (773)
928-6000, ext. 224.
Other Economic Development Resources
Cook County Property Tax Incentives
The Cook County Property Tax Incentives encourage development of property by offering a 12-year reduction in real estate assessments from the standard Cook County rate of 25 percent. Qualifying properties are assessed at 10 percent for the first 10 years, 15 percent for the 11th year and 20 percent for the 12th year.
There are several incentives:
- Class 6(b): Industrial Projects
- Class 7(a) and 7(b) Classifications: Commercial Projects
- Class 8 Classification: Economically Depressed Areas
- Class C Classification: Environmental Contamination
- Class L Classification: Landmarks
New Markets Tax Credits
The New Markets Tax Credits program is a federal initiative that generates employment and other economic development benefits in low-income communities. The program works through the Chicago Development Fund to provide federal income tax credits to financial institutions in exchange for investment in businesses or real estate projects in qualifying areas.
Industrial Development Revenue Bonds
The City of Chicago issues tax-exempt Industrial Development Revenue Bonds (IDBs) and lends their proceeds to manufacturing companies to finance qualified projects that involve the acquisition of fixed assets such as land, buildings and equipment. IDB proceeds may also be used for either new construction or renovation. Tax-exempt bond financing offers long-term financing at rates lower than conventional financing.
Small Business Loan Program
The Small Business Loan Program is available through a partnership between the City of Chicago Treasurer’s office and community-based lenders. The program targets small and high-growth companies that can use the funds for short-term loans and lines of credit.
Negotiated Sale Program
The Negotiated Sale Program arranges the sale of City-owned properties for redevelopment. Properties in the department’s inventory consist of vacant residential, commercial, and industrial land and also improved properties. Cost write-downs may be available for projects that provide tangible public benefits, such as site remediation, new or retained jobs, or other features.