The Illinois Regional Development Authorities (IL-RDAs) are instrumental in advancing and supporting economic development across the state. They are nimble and flexible, able to provide financing for projects quickly – in as little as two to four months. This is a significant improvement over the traditional six-month timeline.
In addition to offering development incentives, IL-RDAs specialize in bond financing and can provide lower rates than banks or other lenders. This makes them a valuable partner for businesses and organizations seeking to expand or improve their facilities.
The bonds issued by an RDA are “double tax-exempt”, meaning the savings are passed on to the borrower in the form of a lower interest rate!
Bonds issued by an RDA offer better terms and lower rates than conventional financing.
Businesses located in Enterprise Zones have access to additional incentives.
Five of the ten RDAs have their own enterprise zone and can provide traditional enterprise zone benefits for project site locations within the RDA. The RDA enterprise zones seek to supplement the local enterprise zones in territories not covered by other enterprise zones.
A sales tax exemption is permitted on the purchase of building materials to be used on a project site in an Enterprise Zone.
A State investment tax credit of one half percent (0.5%). Qualified investment includes machinery, equipment, and buildings.
A state natural gas use tax exemption is permitted on the purchase of natural gas from a third party.
For certain large projects, a State utility tax exemption on the 5.1% natural gas, and telecommunication excise tax is available to businesses.
For certain large projects, a State sales tax exemption on all tangible personal property used or consumed within an enterprise zone.
with 20 years of issuance experience
Illinois Enterprise Zone Changes for 2022. Please take note of the following changes to take effect on January 1st, 2022. P.A. 102-0108 clarifies that the Illinois Enterprise Zone Act authorizes a total of 97 enterprise zones to be in existence at any given time under the Act, other than those authorized.
If you’re buying bonds, you know they’re an investment vehicle. But what’s the actual process behind purchasing one?
The RDAs are authorized to issue tax-exempt bonds for eligible projects such as small manufacturing, affordable housing, non-profit entities, educational facilities, local government infrastructure, and certain environmental projects.
Cannabis dispensaries and growing facilities can potentially qualify for state tax-exempt bond financing and enterprise zone benefits where available.
For more than three decades, the Illinois RDAs have driven significant investment, job creation, and economic growth within their regions and across the State.