Development Incentives
The City of Canton is committed to fostering economic development and revitalization through incentive districts. Canton offers Tax Increment Financing (TIF), Business Development District (BDD), Enterprise Zone (EZ) and Opportunity Zone (OZ) programs that encourage private investment in designated areas within the city and close to the city limits.
The City of Canton and the Spoon River Partnership for Economic Development (SRPED) also offer opportunities for other loan and granting programs.
For more assistance and more information about Canton incentives districts you may reach out to Hometown Consulting at (309) 370-2865. For more information regarding the Revolving Loan programs, you may reach out to the Spoon River Partnership for Economic Development (SRPED) at (309) 647-2677.
Tax Increment Financing (TIF)
A Tax Increment Financing (TIF) district in Illinois is an area a city or village designates to encourage redevelopment. As property values rise, the additional property tax revenue is set aside to help pay for eligible improvements, such as roads, utilities, and redevelopment projects. Local taxing bodies continue receiving taxes based on the area’s original property value, while the growth helps fund reinvestment in the district.
There are three (3) TIF Districts located in Canton. Projects in these TIF Districts typically include the following:
- Redevelopment of substandard, obsolete, or vacant buildings
- Financing public infrastructure improvements, including streets, sewer and water in declining areas
- Cleaning up polluted areas
- Improving the viability of downtown business districts; rehabilitating historic properties
- Providing infrastructure needed to develop a site for new industrial or commercial use
Business Development District (BDD)
Canton’s Business Development District (BDD) program provides financial incentives to support business growth, redevelopment, and community investment using a 1% sales tax revenue generated within the district. To qualify for funding assistance, projects must be located within the designated BDD boundaries and may receive support for construction, renovations, site preparation, demolition, and related professional services.
Projects in Canton’s Business Development District typically assist businesses with:
- Vertical construction costs of new private buildings;
- Rehabilitation, repair, & renovations of existing structures;
- Site preparation and demolition;
- Engineering, architectural, legal & other professional costs:
Enterprise Zone (EZ) – Canton/Fulton County
The Illinois Enterprise Zone Program is designed to stimulate economic growth and neighborhood revitalization in economically depressed areas of the state through state and local tax incentives, regulatory relief and improved governmental services. Businesses located or expanding in an Illinois enterprise zone may be eligible for the following state and local tax incentives:
State Incentives and Exemptions
- Exemption on retailers’ occupation tax paid on building materials
- Expanded state sales tax exemptions on purchases of personal property used or consumed in the manufacturing process or in the operation of a pollution control facility
- An exemption on the state utility tax for electricity and natural gas
- An exemption on the Illinois Commerce Commission’s administrative charge and telecommunication excise tax
Exemptions are available for companies that make minimum statutory investments that either create or retain a certain number of jobs. These exemptions require a business to make application to, and be certified by, the Illinois Department of Commerce.
Local Incentives and Exemptions
In addition to state incentives, each zone offers local incentives to enhance business development projects. Each zone has a designated local zone administrator responsible for compliance and is available to answer questions. To receive a Certificate of Eligibility for Sales Tax Exemption, you must contact the local zone administrator of the zone into which purchased building materials will be incorporated.
Opportunity Zone (OZ) – Canton/Fulton County
An Opportunity Zone in Illinois is a designated lower-income community where a federal program encourages private investment to support job creation, redevelopment, and economic growth. Investors who reinvest capital gains through a Qualified Opportunity Fund into eligible businesses or real estate projects in these areas may receive federal tax benefits. These incentives are intended to attract long-term investment, expand economic opportunities, and help revitalize communities.
Revolving Loan Fund Programs
The City of Canton and the Spoon River Partnership for Economic Development (SRPED) offer Revolving Loan Programs. Revolving Loan Programs are generally provide low interest financing to eligible businesses to support startup, expansion, and other economic development projects. As businesses repay their loans, the funds become available to lend to other businesses, creating an ongoing source of support for local investment, job creation, and business growth.
City of Canton Revolving Loan Fund Program
Coming soon…
SRPED Revolving Loan Fund Program
SRPED’s revolving loan program funds are intended to be used for New Business Start-Ups and Existing Business Expansions in Fulton County. SRPED loan funds are normally structured with 1% interest rate and a five-year term.
SRPED Grant Programs – Coming Soon…
For more detailed mapping, and to verify if a property is within one of the incentive districts utilize the City of Canton’s Economic Development GIS Mapping Application via the link below.
Other State and Federal Programs
Your business start-up or expansion may qualify for state or federal assistance. Visit the following links to learn more about potential incentive programs through the Illinois Department of Commerce and Economic Opportunity (IDCEO), and through the U.S. Small Business Administration.