Incentives



The City has a variety of tools available to support new development and expansion such as: rebate of property & sales taxes, reimbursement of permit & tap-on fees, in addition to employment incentives.

Façade Improvement Program:
  • The Façade Program will provide a grant of up to 25% of the documented cost of improving the exterior of commercial buildings.  
  • Reimbursement will be limited to 25% of the documented cost of the façade improvements, not to exceed $10,000 on any one project.
  • Minimum façade project cost to be eligible for the City of Highland Program is $10,000. Receipts must be submitted in order for the expenses to be considered as project cost.
  • Funding is limited and applications will be received on a "first come, first serve" basis
  • This program applies to all commercial business in Business District A 
  • Façade Program Information
  • Façade Program Application
  • Map of Business District A

  • Applications are submitted to Mallord Hubbard, Director of Economic Development, at mhubbard@highlandil.gov at City Hall, 1115 Broadway.


Tax Increment Financing:
  • Tax Increment Financing (TIF) is a tool state lawmakers gave local governments in the 1980s to help communities restore areas most in need of investment or jumpstart economically sluggish parts of town. With this tool, financially strapped municipalities can make the improvements they need, like new roads or sewers, and provide incentives to attract businesses or to help existing businesses expand without tapping into general funds or raising taxes.
  • When a TIF district is established, the most recent total equalized assessed valuation (EAV) for the district is determined. This is known as the "base EAV." As the TIF district is developed, its total EAV will grow. That portion attributable to the increase in EAV, known as the "tax increment," is placed in a special fund and is spent for redevelopment purposes as outlined in the TIF Redevelopment Plan.
  • A TIF district's success depends on increasing the EAV over the base through redevelopment. Establishing a TIF district does not decrease tax revenues collected by any taxing district, nor does TIF impose special assessments or raise the overall tax rate in the district. Taxes collected on the base EAV continue to be distributed to the municipalities, schools, libraries, and other authorities in the same manner. Only taxes generated above the base EAV are available for TIF use.
  • Since the federal and state governments have significantly reduced their support for economic development, TIF allows municipalities to accept some of this responsibility without raising local property taxes.
  • TIFs help local governments attract private development and new businesses. New businesses mean more jobs, customers, and, in turn, more private investment. TIF designation also helps retain existing businesses that might otherwise find more attractive options elsewhere. The jobs and additional private and public investments mean more money for the community. TIF also helps to overcome the extraordinary costs that often prevent the development and private investment from occurring on environmentally contaminated and other properties. As a result, the TIF area improves, and property values go up.
  • Without TIF benefits, a deteriorating area will not improve. Businesses do not sink capital into decaying areas, and most communities cannot afford the needed costly improvements without raising taxes. But in a TIF district, dollars for improvements are generated by businesses — new and old — attracted by the TIF benefits. Specifically, money for infrastructure improvements and other incentives comes from the growth in property tax revenues — the tax increment.
  • TIF Map

Business District:


Economic Development Fund Includes:

  • Sales & Property Tax Rebates
  • Utility Billing Discounts
  • Waiver of Fees
  • Employment Incentives 


Madison County Discovery Enterprise Zone: