Urbana Enterprise Zone

An Enterprise Zone is a specially-designated area in which tax incentives and direct financial assistance are provided to firms locating or expanding there.

Purposes of the zone:

• Encourage economic development
• Increase employment opportunities for residents of the zone and the larger community.

Zone incentives are established by State legislation (primarily the Illinois Enterprise Zone Act) and by municipal ordinance. The City of Urbana received designation of its enterprise zone from the Illinois Department of Commerce and Community Affairs (DCCA), now known as the Illinois Department of Commerce and Economic Opportunity (DCEO), on July 1, 1985. Under current City ordinance, the Zone will remain in effect until December 31, 2015.

Eligible incentives for each project depend upon project location, type, size, and other criterion. Examples of possible incentives include:

• Property Tax Abatement
• Sales Tax Exemption on Building Materials
• Investment Tax Credits
• Jobs Tax Credit
• Income Tax Deductions for Financial Institutions
• Dividend Deduction
• Corporate Contribution Deduction
• EZ Machinery and Equipment Sales Tax Exemption
• Utility Tax Exemption
• Gas Use Tax Exemption

City of Urbana staff is available to discuss the Enterprise Zone program in further detail with interested businesses. The two most commonly used incentives are Property Tax Abatement and Sales Tax Exemption on Building Materials, which are processed and monitored by the City of Urbana. Property Tax abatements are available, depending on eligibility of the project, through the City and Champaign County for 5 years on commercial projects and 10 years on industrial projects.

Sales Tax Exemptions on Building Materials are available, depending on eligibility of the project, by obtaining a City of Urbana Sales Tax Exemption certificate for each retailer on the project.

The Urbana Enterprise Zone is located primarily in the north part of the City. The Zone boundaries outline the 1980 Census Tract areas that met the eligibility criteria for employment, income, and other demographics, with the exception of several areas added since the Zone was created in 1985.
A map of the boundaries is listed below.
You may contact the Economic Development office to arrange for receiving a copy of the map, but it is still a good idea to contact the Urbana Enterprise Zone Administrator to verify the location.