ELGIN, IL – During the Illinois General Assembly’s Fall Veto session, the House and Senate passed legislation to extend the River Edge Redevelopment Zone historic tax credit for two years until Jan. 1, 2029. This extension will provide Elgin with continued opportunities to attract new development in the core of downtown, especially near the Fox River.
The State of Illinois’ River Edge Redevelopment Zone Act helps redevelop environmentally challenged areas adjacent to rivers in Illinois. The program includes 16 cities, and it encourages industrial and commercial growth through the use of tax incentives. The River Edge tax credit also provides a state income-tax credit equal to 25% of a project's qualified rehabilitation expenditures. The tax credit is scheduled to expire Jan. 1, 2027, which could have threatened some future redevelopment efforts downtown.
House Bill 1437, the legislation extending the credit, is expected to be signed soon by Governor J.B. Pritzker.
“Thanks to the support of our area legislators – especially the leadership of Sen. Cristina Castro and Rep. Anna Moeller – the General Assembly showed important vision to make sure the River Edge tax credit was extended,” said Elgin Mayor David Kaptain. “I also appreciate Governor Pritzker and Department of Commerce and Economic Opportunity for being a partner to help with these critical downtown rehabilitation projects, including the iconic Elgin Tower and the promenade.”
Sen. Cristina Castro, D-Elgin, said the credit “is an important economic development tool for the historic downtown in Elgin and in other communities such as Aurora, Rockford and Peoria. I am glad this legislation will provide certainty as the city continues to pursue investment opportunities.”
Rep. Anna Moeller, D-Elgin, said the River Edge credit helps “stimulate the safe and cost-effective reuse of environmentally challenged properties adjacent to or surrounding rivers. These properties are ideal for residential and retail development, and they can be returned to a safe and economically productive use.”
A 2025 report from the Illinois Department of Natural Resources, which oversees historic preservation for the state, found that the River Edge tax credit has resulted in more than 500 construction jobs and has created 676 new housing units, with 978 more in the pipeline. Between 2012 and 2023, the report found that historic districts in River Edge Zones saw a 44.3% increase in sales tax revenue and generated over $1 million in local tax revenue to their municipalities.
Downtown Elgin projects benefitting from the River Edge tax credit include the $16.6 million rehabilitation of the Elgin Tower at 100 E. Chicago St. in 2016. That 15-story structure now houses 45 one- and two-bedroom market rate apartments. This year, the $18 million rehabilitation of Courtyard 40 at South Spring and Fulton streets established 40 studio, one- and two-bedroom market rate apartments plus 4,500 square feet in commercial ground-floor space. ### |
