Tax Incentives

DPD coordinates an array of tax incentives as outlined below in cooperation with the Cook County Assessor. These incentives encourage private business investment, employment, the revitalization of properties, and rehabilitation of landmark buildings. These initiatives assist businesses by reducing the assessment level over a period of time. All tax incentive applications must have the support and consent of the municipality in order to be considered. A summary of available tax incentives and related requirements is below and also included in this Fact Sheet. 

Class 6b  
  • Properties must be used for industrial purposes and the project must involve new construction, substantial rehabilitation, or the re-occupancy of abandoned industrial property
  • Qualifying properties can apply to receive a 12 year reduction in real estate assessments from the standard commercial assessment rate of 25%

Class 7a and b 

  • Properties must be used for commercial purposes and the project must involve new construction, substantial rehabilitation, or the re-occupancy of abandoned industrial property.
  • 7a = projects less than $2 million
  • 7b = projects more than $2 million
  • Qualifying properties can apply to receive a 12 year reduction in real estate assessments from the standard commercial assessment rate of 25%.

Sustainable Emergency Relief (SER) Program – Class 6b and 8

  • Approved by the Cook County Board in July 2013
  • Applicable to long-term industrial tenants in Cook County for 10 years
  • Demonstrate evidence of economic hardship
  • Age of facility documented
  • Area that demonstrates higher than normal industrial vacancy
  • Qualified properties will be assessed at 10% for 10yrs, 15% for the 11th year, and 20% for the 12th year
  • Applicants need approval from the municipality prior to submittal

Class 6b and 8 – TEERM – Temporary Emergency Economic Recovery Modification (TEERM)

  • Approved by the Cook County Board in July 2013
  • Reduces vacancy period from 24 months to 12 months for properties that have been 100% vacant with the same ownership
  • Qualified properties will be assessed at 10% for 10 years, 15% for the 11th year, and 20% for the 12th year
  • Applicants need approval from the municipality prior to submittal