Urbana Tax Credits

Description: Here are some answers to common questions about tax credits for Urbana businesses.

Does "used" property qualify for the enterprise zone investment tax credit?
Used property does not qualify if it was previously used in Illinois in such a manner and by such a person as would qualify for either the statewide investment tax credit or the enterprise zone investment tax credit. A corporation purchases a used pick-up truck for use in its manufacturing business in an enterprise zone from an Illinois resident who used the truck for personal purposes in Illinois. If the truck meets the other requirements for the investment tax credit, it will not be disqualified because it was previously used in Illinois for a purpose which did not qualify for the credit. However, had the corporation purchased the truck from an Illinois taxpayer in whose hands the truck qualified for the credit, the truck would not be qualified for the investment tax credit, even though the party from whom the truck was acquired had never received an investment tax credit for it.

How much is the tax credit?
An employer who conducts a trade or business in the Urbana Enterprise Zone is allowed a credit of $500 per eligible employee hired to work in the Zone during the taxable year. The credit is available for eligible employees hired on or after January 1, 1986. Any unused portion of the credit may be carried forward five years. The credit must be applied to the earliest year for which there is a tax liability.

How does the employer find individuals eligible for the jobs tax credit?
The employer should list job openings with the local JTPA administrative agency, noting that the business is within the Zone and seeks to hire certified dislocated workers. In Champaign County JTPA is administered by the Champaign consortium, 605 North Neil Street, Champaign, 384–8640.

Source: City of Urbana
Date Last Revisited: 5/7/07