Aurora is proud to foster a finance-friendly business environment. This is achieved in part through the close relationships our team maintains with local businesses and property owners and area financing agencies. We do our best from the start, and throughout, to help you identify incentive programs that will maximize your return on investment.
From federal assistance to local tax incentives, we will work with you and all respective agencies to ensure your project receives the necessary financial assistance it needs to thrive in Aurora.
City of Aurora Incentives
The City of Aurora utilizes many strategies and funding sources to support economic development programs and initiatives throughout the City. The following are some of the many available project funding strategies managed by the City of Aurora’s Mayor’s Office of Economic Development.
River Edge Redevelopment Zone
The River Edge Redevelopment Zone has three main functions: to create new jobs; stimulate the local economy; and to revitalize significant buildings, sites, and neighborhoods. It was designed by the State of Illinois to help redevelop properties facing environmental challenges adjacent to rivers in Illinois, like the Fox Valley River. This program provides tax credits for developments located in these redevelopment zones.
Stolp Island Historic District
This is a nationally designated district that allows property owners to qualify for the historic preservation tax credit program, providing that the building is income producing and adheres to the Secretary of the Interior’s Standards for Rehabilitation. The federal tax credit can be worth up to 20% of the cost of rehabilitation.
Industrial Revenue Bonds
The City of Aurora has the ability to issue tax-exempt industrial revenue bonds (IRBs) on behalf of manufacturing companies to finance the acquisition of fixed assets including land, buildings, equipment, and also new construction and renovation. IRBs provide financing rates that are lower than conventional financing.
Tax Increment Financing
The Tax Increment Financing (TIF) districts are created to assist in the redevelopment of distressed areas. As improvements are made to an area and the value of that area increases, the incremental property tax can be used for public improvements or given to developers for additional development.
Aurora has 16 active TIF districts:
- TIF #4 “Bell-Gale Industrial Park” – Created in 2005; will expire in 2028.
- TIF #5 “West River TIF” – Encompasses Lake Street retail corridor. Created in 2007; will expire in 2030.
- TIF #6 “East River TIF” – Encompasses the Route 25 corridor. Created in 2007; will expire in 2030.
- TIF #7 “West Farnsworth TIF” – Created in 2011; will expire in 2034.
- TIF #8 “East Farnsworth TIF” – Created in 2011; will expire in 2034.
- TIF #9 “Stolp Island Area TIF” – Created in 2019; will expire in 2042.
- TIF #10 “Galena and Broadway TIF” – Created in 2020; will expire in 2043.
- TIF #11 “Benton/River TIF” – Created in 2020; will expire in 2043.
- TIF #12 “Ogden and 75th TIF” – Created in 2020; will expire in 2035.
- TIF #13 “River and Galena Area TIF” – Created in 2020; will expire in 2043.
- TIF #14 “Lincoln/Westin TIF” – Created in 2020; will expire in 2043.
- TIF #15 “Commons/New York TIF” – Created in 2020; will expire in 2035.
- TIF #17 “Farnsworth/Bilter TIF” – Created in 2024; will expire in 2047.
- TIF #18 “East River Bend TIF” – Created in 2022; will expire in 2045.
- TIF #19 “110 Cross TIF” – Created in 2023; will expire in 2046.
- TIF #20 “River Vine TIF” – Created in 2023;will expire in 2043.
Learn More About CITY INCENTIVE PROGRAMS
State of Illinois Programs
Economic Development for a Growing Economy
This program is provided by the Illinois Department of Commerce and Economic Opportunity. The Illinois Economic Development for a Growing Economy Program (EDGE) offers special tax incentives for companies to locate or expand their operations in Illinois. EDGE allows companies to reduce their costs of doing business compared to related costs in other states.
Employer Training and Investment Program
This program is offered by the Illinois Department of Commerce and Economic Opportunity. The Employer Training Investment Program (ETIP) assists Illinois companies in training their workforce to increase the productivity and competitiveness for Illinois businesses in the global economy. ETIP enhances job opportunities for employees in Illinois and keeps workers’ skills on pace with the latest technologies and business practices.
Learn More About ILLINOIS STATE INCENTIVE PROGRAMS
Federal Programs
Community Development Block Grant
The Aurora Alliance’s Business Expansion Forgivable Loan Program is a program aimed at assisting low to moderate-income business owners in Aurora’s Neighborhood Revitalization Strategy Area. The Forgivable Loan Program is funded by the United States Department of Housing and Urban Development’s Community Development Block Grants (CDBGs), administered by the City of Aurora. The Forgivable Loan Program is intended to assist entrepreneurs and small businesses attain access to capital.
Historically Underutilized Business Zones
Historically Underutilized Business (HUB) Zones were established in 1997 by the federal government as part of the Small Business Reauthorization Act. Specific contracts from the federal government can be designated for HUB Zone qualifying companies. Government-wide goals aim for 3% of prime and subcontracting opportunities to go to HUB Zone companies.
Federal Opportunity Zones
Federal Opportunity Zones offer monetary incentives to investors in communities like Aurora so they can come in and build, all while cultivating economic growth and adding to the job market. This incentive was made possible by the Investing in Opportunities Act, which amended the Internal Revenue Code to authorize and assign opportunity zones to sections of a community that are of lower income.
Federal Opportunity Zones offer three tax incentives to investors:
- Temporary Deferral: Investors can defer capital gains taxes until 2026 by keeping unrealized gains (profit from investments that exist on paper, but have yet to be claimed) in an Opportunity Fund.
- Reduction: If the Opportunity Fund investment is held for 5 years, the original amount of capital gains that an investor has to pay deferred taxes for is reduced by 10%. If this fund is held for a total of 7 years, it is reduced by another 5%, for a total reduction of 15%.
- Exemption: Any capital gains on investments made through an Opportunity Fund accrue tax-free if they are held for at least 10 years by the investor.
