This bill introduces a structured approach to property tax grants over a ten-year period, gradually reducing the percentage of the tax difference covered after the initial five years. During the first five years, businesses in qualified areas can receive grants that cover 100% of the tax increase over the base year due to real property improvements. In years six through ten, the support diminishes, moving from 90% to 50%. By implementing this sliding scale, the bill encourages ongoing investment while transitioning businesses toward full property tax responsibility over time.
House Bill 2790 establishes the Economic Development Property Tax Grant Program Act, which aims to support businesses located in underserved areas of Illinois by offering property tax grants. The bill mandates that the Department of Commerce and Economic Opportunity provides grants to businesses which are already authorized applicants under existing acts, such as the Invest in Illinois Act, as long as they own qualified property situated in specified underserved locales. The intention is to incentivize economic growth and development in areas that may need additional support to attract investment.
While supporters view this bill as a necessary tool for promoting business in underserved areas, there may be concerns about potential misuse or over-reliance on tax incentives leading to a dependency that may not yield the intended long-term benefits. Additionally, critics may argue that the focus on tax grants could divert attention from other forms of assistance or programs that could provide more comprehensive support to the communities involved. Nonetheless, the goal remains to stimulate economic activity in areas that have historically faced challenges in attracting and retaining businesses.