Façade Improvement Program

The Façade Improvement Program is a reimbursement / matching grant program budgeted and administered by the Village to encourage the exterior rehabilitation and restoration of buildings in the downtown area. Up to 75% of approved work may be reimbursable by the Village.

For those interested in applying for the Façade Improvement Program, please view the Façade Improvement Program Packet, which contains all necessary information and forms.

Also see the Resource Bank Façade Improvement Loan Program

Enterprise Zone

Businesses considering locations in Hampshire may work with the Village to utilize enterprise zone opportunities through the Upper Illinois River Valley Development Authority (UIRVDA), which can provide substantial financial incentives including:

  • Sales Tax Exemption on Building Materials
  • EZ Investment Tax Credit
  • EZ Natural Gas Use Tax Exemption
  • Utility Tax Exemption
  • Consumables Tax Exemption

Please contact Village Manager Jay Hedges for more information (contact info below).

Foreign Trade Zone

The Rockford Foreign Trade Zone #176 is one of Northern Illinois’ most valuable assets for companies that engage in international trade. As cargo arrives in the country for an FTZ operator, it receives preferential treatment with duties deferred, reduced, or eliminated. When product is not held at the port of entry for customs clearance, supply chain management becomes more predictable and streamlined. Accurate reporting improves inventory accuracy, reducing the need for costly emergency shipments. These are just some of the immediate impacts an FTZ can have on private companies.

Your company should consider becoming an activated FTZ site or subzone if you:

  • import a significant amount of products with a high value, and/or you expect your imports to grow,
  • re-export a substantial percentage of imports, and/or
  • hold significant value of imported inventory.

Please contact Village Manager Jay Hedges for more information (contact info below).

Prime Sites Grants

Illinois' Business Attraction Prime Sites Capital Grant Program assists companies with large-scale capital investment projects that commit to significant job creation for Illinois residents as they relocate or expand operations within Illinois. Prime Sites grants can encompass a wide range of economic development projects that will result in job creation in the state of Illinois.

Award amounts for eligible projects will be formula based, and an applicant may apply for a grant of up to $5,000 per new eligible job created. Grants will range from $250,000 to $6 million. This grant opportunity also includes a 4:1 match requirement, meaning grant funds can only cover 20% of the total eligible capital expenses for the proposed project.

Eligible projects may include new construction and renovation of industrial and commercial facilities, including associated infrastructure improvements and the purchase and installation of durable equipment. Construction or renovation of facilities to be used as warehouses are not eligible.

Illinois Tax Credits

EDGE Program

Illinois’ EDGE program provides annual corporate tax credits to qualifying businesses which support job creation, capital investment and improve the standard of living for all Illinois residents. Initial qualification criteria require certain job creation and project investment requirements.

Apprenticeship Education Expense Program

Illinois' Apprenticeship Education Expense Program allows employers a tax credit for qualified educational expenses associated with qualifying apprentices. Employers may receive a credit of up to $3,500 per apprentice against the taxes imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act, and an additional credit of up to $1,500 for each apprentice if (1) the apprentice resides in an underserved area or (2) the employer's principal place of business is located in an underserved area.

Tax Increment Financing

The Village of Hampshire currently has one Tax Increment Financing (TIF) district, named the Central Area Redevelopment Project, that covers approximately 107 acres in the downtown area primarily along State Street, Keyes Avenue, and Mill Street. For those interested in applying for TIF funds, please view the Hampshire TIF Policies and Application.

When a redevelopment project area (TIF district) is created, the value of the property in the area is established as the “base” amount. The property taxes paid on this base amount continue to go to the various taxing bodies as they always had, with the amount of this revenue declining only if the base declines (as was the case with the Great Recession) or if the tax rate goes down. It is the growth of the value of the property over the base that generates the tax increment. This increment is collected into a special fund administered by the Village to make additional investments in the TIF district. This reinvestment generates additional growth in property value, which results in even more revenue growth for reinvestment. In this way the TIF district creates a vital cycle, increasing development and redevelopment in the area, such that when the TIF district ends all of the taxing bodies benefit from the new growth. Read more about how TIF districts work in Illinois.

Contact Information

Mo Khan
Assistant Village Manager for Development
(224) 833-4916
mkhan@hampshireil.org