Kane County Reporter

The Illinois General Assembly has passed legislation extending the River Edge Redevelopment Zone historic tax credit for two more years, now set to expire on January 1, 2029. The measure, which was approved during the legislature’s Fall Veto session, is expected to be signed into law by Governor J.B. Pritzker.

The River Edge Redevelopment Zone Act aims to revitalize environmentally challenged areas along rivers in Illinois through tax incentives. Sixteen cities participate in this program, which provides a state income-tax credit equal to 25% of qualified rehabilitation expenses for eligible projects. The extension is intended to support continued development efforts in downtown Elgin and similar communities.

Elgin Mayor David Kaptain thanked lawmakers for their efforts: “Thanks to the support of our area legislators – especially the leadership of Sen. Cristina Castro and Rep. Anna Moeller – the General Assembly showed important vision to make sure the River Edge tax credit was extended,” said Kaptain. “I also appreciate Governor Pritzker and Department of Commerce and Economic Opportunity for being a partner to help with these critical downtown rehabilitation projects, including the iconic Elgin Tower and the promenade.”

Senator Cristina Castro (D-Elgin) highlighted the significance of the extension: “The credit is an important economic development tool for the historic downtown in Elgin and in other communities such as Aurora, Rockford and Peoria. I am glad this legislation will provide certainty as the city continues to pursue investment opportunities.”

Representative Anna Moeller (D-Elgin) emphasized its impact on property reuse: “The River Edge credit helps stimulate the safe and cost-effective reuse of environmentally challenged properties adjacent to or surrounding rivers. These properties are ideal for residential and retail development, and they can be returned to a safe and economically productive use.”

A report from 2025 by the Illinois Department of Natural Resources states that since its inception, the tax credit has led to more than 500 construction jobs created and resulted in 676 new housing units with nearly a thousand more planned. Between 2012 and 2023, historic districts within River Edge Zones saw sales tax revenue increase by over 44%, generating over $1 million in local taxes for municipalities.

Projects in downtown Elgin that have used this tax credit include a $16.6 million renovation of Elgin Tower at 100 E. Chicago St., completed in 2016; it now contains 45 market-rate apartments. In addition, an $18 million redevelopment at Courtyard 40 created new residential units along with commercial space on South Spring and Fulton streets.