Economic Objectives

The City of Zion has an economic commitment to:

• Encourage existing businesses and industries to expand
• Assist new business start-ups
• Recruit new companies from out-of-state and internationally
• Encourage manufacturing and industrial-based businesses
• Encourage training and development of Zion-area employees
• Promote businesses that contribute to the quality of life in Zion through civic and philanthropic leadership

Need-Based Analysis Model

The City, when determining whether certain incentives should be granted, conducts a need-based analysis that considers factors including:

• Increase in appraised valuation of the property
• Projected sales and income tax revenue
• Number of new jobs created, along with earnings and benefits
• Secondary or “multiplier” job creation and related tax impacts

Additional factors that may also be considered:

• Diversification of the local economy
• Potential to bring “new money” from outside markets
• Future expansion and job creation potential
• Positive impacts on supporting industries and local businesses
• Compatibility with the City’s land use and infrastructure plans

Incentives

• Municipal Sales Tax Rebate
• Property Tax Abatement

Tax Increment Financing (TIF) Districts: The City has established multiple TIF districts to promote business growth throughout Zion. For a list of TIF Review Board members, visit the “Committees and Advisory Boards” page under the Community section.

• TIF Application (PDF)
• TIF 3 – Boundary Map
• TIF 4 – Boundary Map
• TIF 5 – Boundary Map
• TIF 6 – Boundary Map
• TIF 7 – Boundary Map

Lake County Partners

The City of Zion works closely with Lake County Partners—the county’s economic development arm—to help businesses navigate state and federal incentive programs. Examples include:

• Large Business Development Program: Low-interest loans and grants up to 25% of project cost.
• Business Development Public Infrastructure Program: Low-interest financing for public infrastructure improvements.
• Illinois Department of Transportation Assistance: Up to 100% financing on state highways; 50% on municipal streets.
• Job Recruitment & Training Assistance: Up to 50% reimbursement for employee training costs; free recruitment assistance.
• EDGE Tax Credit: Illinois income tax credits for job creation, up to 10 years.
• Training Expense Credit: 1.6% state income tax credit for employer training expenses.
• Work Opportunity Tax Credit: Credit for hiring employees previously receiving public aid.
• Manufacturer’s Purchase Credit: Credit applied to Illinois sales tax for manufacturing equipment purchases.
• Research & Development Tax Credit: 6.5% Illinois income tax credit for qualified R&D activities.
• Lake County Brownfield Grant Program: Funding to remediate contaminated properties for redevelopment.

Tourism Grants

Hotel Motel Tax Grant: The City of Zion’s Hotel/Motel Tourism Grant Program was established to enhance quality of life for residents and visitors. Funding comes from a local tax on hotel stays (per Section 86 of the Zion Municipal Code). These funds support local events, projects, and initiatives that encourage tourism and overnight visits. Download Application (PDF)