CHICAGO – In an aggressive move to stimulate business growth and job creation in McDonough County, Gov. Rod R. Blagojevich today announced the boundary expansion of the Macomb/McDonough County Enterprise Zone. The expansion of the enterprise zone, which lends critical income and job creation tax credits to companies located within its borders, will add nearly three and a half square miles to the zone and help trigger new development for businesses within its new boundaries.
“In order to fuel greater economic growth and job creation in Western Illinois, we must continue to find innovative ways to help spur business investment. Expanding the enterprise zone boundaries in McDonough County gives local business a key tool it can use to stay competitive, productive and profitable in an area where it is greatly needed. Economic growth follows opportunity, and creating opportunity is what we’re determined to continuing doing throughout our state,” Gov. Blagojevich said.
Chief benefits of an enterprise zone include sales tax exemptions and tax credits for job creation. A 6.25 percent state sales tax exemption is permitted on building materials to be used in an enterprise zone, while the Enterprise Zone Jobs Tax Credit allows a business a $500 credit on Illinois income taxes for each job created in the zone for which a certified eligible worker is hired. The credit may be carried forward for up to five years.
“Gov. Blagojevich and I strongly believe that in order to retain and create more good jobs, we must continue to look at innovative ways to spur business growth and investment. This enterprise zone boundary expansion will provide an important shot in the arm to the economic vitality of McDonough County and should help attract more investment and new jobs down the line,” State Senator John Sullivan (D-Rushville) said.
The Macomb/McDonough County Enterprise Zone has reported total project investments of more than $59 million since being certified in 1986, which have resulted in the creation of nearly 1,200 jobs and the retention of more than 4,500 jobs.
The expansion will add portions of the cities of Bushnell and Colchester, extending benefits to local businesses such as Vaughn & Bushnell, a producer of hand tools; Midwest Control Products, a producer of wire forms, forging rods and bearings; and Yetter Manufacturing, a producer of farm equipment. The expansion will also include additional portions of Macomb and unincorporated McDonough County.
The additional property near the Macomb Airport is needed to accommodate expected commercial and industrial expansion due to the recent location of the Pella Corporation manufacturing facility and the expansion of the current NTN Bower manufacturing facility in Macomb. The zone's size is being expanded by 3.39 square miles. Total size of the enterprise zone is now 4.7 square miles.
The new zone approval will also extend the enterprise zone’s termination date by ten years, making its important benefits available until the year 2016.
A local enterprise zone may apply to the Illinois Department of Commerce and Economic Opportunity (DCEO) for boundary expansion if the proposed area to be added meets at least one of the tests for poverty, low income, unemployment or population loss; or the proposed area will provide an immediate substantial benefit to the zone.
“The Macomb/McDonough County Enterprise Zone is a tremendous asset to businesses development, allowing companies to reduce their total expenses and improve their bottom lines. By expanding the boundaries of this enterprise zone, Gov. Blagojevich is helping catalyze a whole new wave of business investment and growth in the area,” DCEO Director Jack Lavin said.
Gov. Blagojevich’s Opportunity Returns regional economic development strategy is the most aggressive, comprehensive approach to creating jobs in Illinois’ history. Since a one-size-fits-all approach to economic development just doesn’t work, the Governor has divided the state into 10 regions – each with a regional team that is empowered and expected to rapidly respond to opportunities and challenges. Opportunity Returns is about tangible, specific actions to make each region more accessible, more marketable, more entrepreneurial and more attractive to businesses. It is about upgrading the skills of the local workforce, increasing the access to capital, opening new markets, improving infrastructure, and creating and retaining jobs. Opportunity Returns is about successfully partnering with companies and communities, both large and small, to help all of Illinois reach its economic potential.