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Incentive Opportunities
Oak Forest is more than just a place to do business — it’s a place to thrive. With a growing population of over 28,000 residents, a diverse and educated workforce, and an active local economy, the city offers a high quality of life, making it an ideal location for businesses to attract top talent and families. The city’s exceptional schools, safe neighborhoods, and proximity to parks, recreational facilities, and cultural events make it a great place for both employers and employees to call home.
The City of Oak Forest is eager to partner with developers and businesses that share its vision for creating a vibrant, sustainable, and prosperous future. We invite you to explore the many opportunities available in Oak Forest, where your next project can thrive in an environment that encourages growth, fosters innovation, and delivers long-term success.
We are committed to supporting your commercial development from concept to completion, offering tailored incentives, expedited processes, and collaborative partnerships that ensure your project’s success. The City of Oak Forest stands ready to help you navigate the development process and turn your vision into reality.
Incentives
Cal-Sag Enterprise Zone
An Enterprise Zone is a designated geographic area that offers a range of incentives and benefits to encourage economic development, business investment, and job creation. These zones are typically established in areas that have faced economic challenges, such as high unemployment, low-income neighborhoods, or regions in need of revitalization. The purpose of enterprise zones is to stimulate private-sector investment by offering financial incentives that reduce business operating costs and encourage the growth of new and existing businesses.
An Enterprise Zone offers:
- Sales tax abatement on building materials for projects.
- 50 percent abatement of the municipal portion of real estate taxes for five years, on the added tax value created by the project.
- 50 percent discount on local building permits.
This incentive is administered by Cal-Sag Enterprise Zone.
Business Improvement Grant
The Business Improvement Grant is a 50% grant of up $50,000 to support the renovation or expansion of businesses in Oak Forest. To learn more about eligible projects and apply see the links below
What are eligible projects for funding?
- Installation, repair and replacement of exterior exit doors to provide public access, meet current building and fire codes, and/or improve the overall appearance of the building;
- Painting of the exterior of the building;
- Repair, replacement or addition of exterior shutters and awnings, except for backlit and/or plastic awnings;
- Repair and replacement of signs;
- Repair, replacement and installation of exterior stairs, porches, railings and exit facilities;
- Repair and rebuilding of exterior walls, including cleaning, sealing, tuck-pointing, painting and the like;
- Repair of windows, frames, sills, glazing, replacement of glass, and installation of new windows;
- Repair or construction of cornices;
- Repair, installation, replacement or addition of any other improvement the City Administrator or their designee deems appropriate;
- Interior compliance to meet requirements such as building, accessibility, and fire codes;
- Interior additions within the intent of the Business Improvement Grant; and
- Landscaping and streetscape improvements including, but not limited to brick pavers, lighting and furnishings.
- Other projects could be supported, reach out today!
Cook County Property Tax Incentive
A property tax incentive offering reduced property tax rates for developers who rehabilitate or build commercial properties in specific locations, typically targeting properties in older or underdeveloped areas to stimulate revitalization and economic growth.
The Cook County Property Tax incentive provides a reduction in the property’s tax assessment level for up to 12 years. The reduction allows the property owner or developer to pay lower property taxes than the standard tax rate. Normally your assessed value is at 25% of the market value. With the incentive the assessed value is decreased to 10 percent for the first 10 years then increase by 5 percent two years before returning to 25 percent.
This incentive is processed by Cook County but requires local approval.
Southland Reactivation Incentive
A tax abatement incentive to property developers who purchase tax-exempt commercial and industrial property within Bloom, Bremen, Calumet, Rich, Thornton or Worth Townships in Cook County.
The Southland Reactivation designation reduces a parcel's property tax bill for 12 years. Qualifying parcels are assessed at 50 percent of the last known equalized assessed value. For the first year a parcel is certified as a Southland Reactivation property, the aggregate tax bill liability cannot exceed $100,000. Discounts on the liability would decrease gradually, but continue for a total of 12 years. The incentive is currently non-renewable.
This incentive is led by the municipality. The City of Oak Forest will handle the county notification and passing of ordinance as required by the incentive.
Tax Increment Financing
Tax Increment Financing (TIF) is a public financing method used to promote economic development in a specific area. It works by using future increases in property taxes generated by new development or improvements in a designated district to fund the costs of those improvements.
- Environmental Remediation and Site Preparation
- Redevelopment Costs
- Financing Costs
- Planning and Administrative Costs
Oak Forest staff and consultants handle the review of the request.
Opportunity Zone
A designated geographic area in the United States that offers tax incentives to encourage investment and economic development in underdeveloped or economically distressed communities.
- Deferral of capital gains: If an investor realizes a gain from selling an asset and reinvests it in an Opportunity Fund (which then invests in an Opportunity Zone), the investor can defer paying taxes on that gain for several years.
- Exclusion of gains from Opportunity Fund investments: If the investor holds their investment in the Opportunity Fund for at least 10 years, they can potentially exclude any new gains from the investment in the Opportunity Fund from federal taxes.
To apply, send an email.