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We are serious about the development, growth, and revitalization of our business environment. That’s why we offer the following local incentive programs to assist businesses considering locating or expanding in Mendota.


To discuss which programs your business might be eligible for, please contact Mendota’s Department of Economic Development at 815-539-7459 or email


Incentive Options

Tax Increment Financing (TIF) is a mechanism for local governments to stimulate economic development or redevelopment. In a TIF district, taxes generated from new investment are captured and invested back into the area to promote development. TIF can be used as a tool to attract new businesses or help existing businesses expand without tapping into general revenue funds or raising taxes.

Mendota TIF map

Examples of TIF-Eligible Expenses

  • Land acquisition

  • Demolition

  • Rehabilitation or repair of existing buildings

  • Job training programs

  • Relocation costs

  • Studies, surveys and plans

  • Qualified interest costs

  • Professional services such as architectural, engineering, legal, marketing and financial planning

Enterprise Zone has ended in Mendota. However, UIRVDA Enterprise Zone May Be Available.

Certain areas within Mendota are within an Enterprise Zone that offers a number of benefits to companies locating within this designated area. Some of these benefits are summarized below.

  • Property Tax Abatement — 50% for 5 years

The local government and other taxing districts have agreed to provide an abatement of their portion of real estate taxes, which normally would have been assessed, for eligible industrial or commercial projects. This abatement is calculated on the "increased assessment" amount beginning with the tax year in which the new, increased assessment amount would be levied.

  • Sales Tax Exemption —

A combination of state and local sales tax exemptions for a total of 6.5% on all construction materials purchased for a project.

Investment Tax Credit. This allows a 0.5% credit against the state income tax for investments in machinery, equipment and real property located in the Zone.

  • Employment Tax Credit

This allows a business a $500 credit on Illinois Income Tax for the business for each eligible job created in the zone.

Building Permit Fee Waived. Sewer and Water Tap Fee Waived.

Revolving Loan Fund (RLF) program offers an attractive interest rate (currently 5%) with reasonable terms for eligible projects. This loan was established with Community Development Assistance Program (CDAP) funds to spur job creation and/or retention. One full-time equivalent job must be created or retained for every $15,000 provided. Up to 50% of a project’s total costs are eligible, provided other program requirements are met. Industrial and commercial projects of any size can apply.

Facade Grant is available to assist businesses improve the look of the front of their building. The grant is available up to $14000 and the City of Mendota will match up to half of that.    



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