Enterprise Zone Board Approves Residential Incentives on Construction Projects

The Effingham/Effingham County Enterprise Zone Board has proposed enhancing the incentives offered to expansion projects in the Zone.

The amendment was proposed by Effingham Economic Development Administrator Sasha Althoff, who told Zone board members the changes would be helpful in this time of workforce and housing shortages. Althoff proposed adding incentives for residential projects that would include a five-year property tax abatement on new single family home construction and a three-year property tax abatement on new multi-family construction of two units or more. Those projects would also receive a sales tax exemption on permanently-affixed building materials. 

Residential rehabiitation projects with a total cost of $50,000 or more would qualify to receive the sales tax exemption on permanently-affixed building materials, but not a property tax abatement. Althoff explained that rehabilitation projects are eligible for a temporary property tax abatement through the Effingham County Supervisor of Assessments Office.

Previously, the incentives were available to commercial and industrial development projects, but not to residential projects.

The Enterprise Zone Board approved the changes, moving the proposal on to the City of Effingham, Effingham County, and the Village of Teutopolis for approval of the changes. All of the affected taxing bodies would also be required to adopt a resolution agreeing to a property tax abatement.