Chicago-Cook Business Center

8.21.2008

Industrial Property Tax Incentive

Manufacturing, Warehousing & Distribution
Cook County’s Industrial Property Tax Incentive can give a company a 50 % reduction in its total property tax bill for a 10-year period, a substantial bottom line savings. More than 600 companies have received the incentive since 1980. In addition to manufacturing companies, warehousing and distribution companies were made eligible in 1995. This incentive applies to all Chicago and suburban Cook County areas.

The Class 6b incentive reduces the assessment rate from 36% to 16% for a period of 8 years. In the phase-out years 9 and 10, there are smaller assessment rate reductions to 23% and 30%. The incentive may apply in the following cases:

New Construction. The reduction applies to both land and facilities.
Expansion of existing facilities. The reduction applies only to the expansion and the land under the expansion. With vertical expansion, the reduction covers added square footage and a portion of the land.
Substantial rehabilitation of existing facilities. The reduction applies to the added value of the rehabilitation, but not the land.
Purchase and use of facilities that have been vacant for at least two years. The reduction applies to both land and facilities. This provision does not mean that a facility must be tax-delinquent to qualify, but only that the owner has not utilized it or has not leased it for 24 consecutive months.

For businesses that are expanding, relocating or moving into the region, this incentive should be part of the planning in considering costs of different locations. The local municipality must approve the incentive. The application process is simple and not lengthy. The company must apply for the tax break before starting construction or within 90 days of buying a vacant facility.

To speak with a business assistance representative call 312.603.1070, fax 312.603.9971

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