The zone is composed of multiple parcels that have been inter-connected to make them a single contiguous zone. The following is a brief summary of Enterprise Zone Benefits. All building materials purchased for new construction or rehabilitation of a building located within the City's Enterprise Zone are exempt from sales taxes, providing that a building permit is required and the building materials are purchased from a retailer within the City's boundaries. Property Tax Abatement New construction or rehabilitation of property located in an Enterprise Zone may qualify for an abatement of City of Springfield property taxes on the increase in assessed value of the property due to the improvements. The abatement is for three years and is based on a sliding scale depending on the increase of assessed value.
Abatements are only available when increases are attributable to improvements.
There is no abatement where the Enterprise Zone overlaps a Tax Increment Financing District. The Office of Economic Development, annually, reviews the building permits issued for the year, computes the credit and notifies the Treasurer's Office before property tax notices are mailed. A state investment tax credit of 0.5 percent is allowed a taxpayer who invests in qualified property in an enterprise zone. This credit is in addition to the regular 0.5 percent investment tax credit which is available throughout the state. The investment tax credit for qualified property refers to property which is new or used, including buildings and structural components of buildings.