Henry would like to build a new machining building for metal working and expand his existing shop.
Henry has operated and owned this local family business for many years; he knows the value of long term connections to our community as an employer. His current facility is located in one of the zone cities or villages.
He contacts the zone administrator and verifies the site is in the Lee-Ogle Enterprise Zone. The site is not in a municipal TIF redevelopment area so it would be qualified for real estate tax abatement on improvements. He finds that the zone incentives have the potential to help him get his dreamed-of expansion moving forward years ahead of schedule.
The real estate improvements necessary to expand this facility total $1 million dollars. Additional non-real estate machining manufacturing equipment and technology, etc. total $200,000. Estimated use of natural gas per year is $5,000.
A one-time fee of ½ of 1% of the estimated building materials cost (a typical project is about 50% labor and 50% building materials) is paid to the enterprise zone, which would be $500,000 times .5% or $2,500.
Savings accruing from a Lee-Ogle Enterprise Zone project are as follows:
In summary, the Henry Machining Business Expansion Project, when undertaken in the Lee-Ogle Enterprise Zone after applying and paying a $2,500 fee to the enterprise zone, would benefit from $99,000 in local property tax abatement, $40,000 in savings from the Building Materials Sales Tax Exemption, $6,000 in Illinois income tax credits, and an on-going $250 per year savings on natural gas purchases.