Think Urbana is a part of the City of Urbana’s Enterprise Zone incentive program. The program provides sales tax exemptions and property tax abatements to qualifying projects.
Prior to receiving Think Urbana Sales Tax exemptions and Property Tax abatements projects must have a building permit and complete the application process. Our staff is ready and available to assist you in this process, simply contact us!
New construction, single or two-family projects located in the Enterprise Zone with a minimum project cost of $80,000 qualify for Think Urbana. Urbana’s subdivisions are all located within the Enterprise Zone, providing you with a variety of housing choices. Use the Enterprise Zone layer on the County webpage to determine if a property is located within the Urbana Enterprise Zone.
Sales tax exemptions occur at the point of sale. New building materials, purchased in Illinois, and permanently affixed to the property are eligible.
In the first year after full assessment, Think Urbana participants will receive a 100% discount on property taxes, 80% the second year, 60% the third year, 40% the fourth year, and 20% the fifth year on the increased value of their new home from participating taxing partners. This all equals out to around 50% off taxes over five years.
Property tax abatements can be layered with additional programs such as the Homestead Exemption. Homes do not have to be owner occupied to receive Think Urbana benefits, and property tax abatements will transfer to new owners when sold. For example, if a property is sold after three years, the new owner will receive the remaining two years of abatements.
Property tax abatements are provided by the City of Urbana, the Urbana School District, Champaign County, the Urbana Park District, the Champaign-Urbana Mass Transit District, and Cunningham Township.
Additional information and applications can be found on the City of Urbana’s website or by contacting the Economic Development Division. A small fee is required for participation.