AURORA – State Senator Linda Holmes (D-Aurora) has passed a bill to extend the sunset of the River Edge Redevelopment tax credit from Jan. 1, 2022 to Jan. 1, 2027. The River Edge Historic Tax Credit Program (RE_HTC) provides a state tax credit for a project’s qualified rehabilitation of certified historic structures in the designated zones. It was designed to help older river cities redevelop older properties.

“This has been so successful in Aurora since it began in 2006, I can’t wait to see what’s next in renovating historic structures to further revive our local economy,” Holmes said. “The timing is just right as we need the stimulus of more jobs, more production and sales of materials and services right now as we emerge from the pandemic economy.”

The tax breaks for those structures inside the River Edge Zone have made possible dozens of development projects including the old Copley Hospital campus, the Keystone Building, the Terminal Building, the former West Aurora Administration Building, Waubonsee Community College, River Street Plaza, the Green Mile Bike Lane and the Hobbs Building, along with several residential, office and mixed use sites.

Developers inside the River Edge Redevelopment Zone get a 20% break on federal taxes, and a 25% break on state taxes from historic tax credits. They also are exempted from paying state sales tax on materials for non-residential redevelopment.

State legislation allows five Illinois cities to establish River Edge Zones: Aurora, Elgin, Rockford, East St. Louis and Peoria.

Senate Bill 157 has passed the Senate, and now will head to the House for their consideration.