New Construction Tax Incentive Program

There are two New Construction Property Tax Incentive Programs in the City of Rock Island. One incentive applies to the entire city, while the second applies to the New Old Chicago Neighborhood and the Downtown TIF area.

Entire City

The City of Rock Island, the Rock Island-Milan School District #41 and Rockridge School District #300 have joined together to offer a Property Tax Incentive Program for new homes in the City of Rock Island. Homeowner property tax incentives include a 3-year city tax savings and a 3-year school tax savings.

To qualify, you must be the first buyer of the home (not transferable), and your home must be: new construction located in the City of Rock Island on any undeveloped lot, an owner-occupied single family home or condominium, and issued a certificate of occupancy prior to July 1, 2010.

Following are the program guidelines:

• Property taxes must be paid in order to be eligible.
• The City of Rock Island will rebate its property taxes up to $1,500 per year.
• The Rock Island-Milan School District #41 will rebate 40% of the school property tax.
• The Rockridge School District #300 will abate 40% of the school property tax. (This differs from the Rock Island-Milan incentive.)
• The property tax incentive is available for three years following the issuance of a certificate of occupancy.
• Rebates will cover 36 total months of ownership to account for actual move-in and assessment dates. The Rockridge incentive covers three full tax years after moving into the home.
• Rebate checks will be processed within 30 days of the City receiving a copy of the property tax bill.
• One check will be issued to you by the City, covering the Rock Island-Milan School District and City portions of the rebate. The City is reimbursed by the School District for processing the entire rebate. $2,000 or more

New Old Chicago & Downtown TIF Area

The City of Rock Island and the Rock Island-Milan School District #41 have joined together to offer a special Property Tax Incentive Program for new homes in two specific neighborhoods. 

To qualify, you must be the first buyer of the home (not transferable), and your home must be: new construction located in the New Old Chicago Neighborhood or Downtown Tax Increment Finance District of the City of Rock Island on an undeveloped lot, an owner-occupies single-family home or condominium, and issued a certificate of occupancy prior to July 1, 2010.

Following are the program guidelines:

• Property taxes must be paid in order to be eligible.
• The City of Rock Island's rebate is for 10 years, with 100% rebated in the first year, 90% in the second year, 80% in the third year, etc.
• The City of Rock Island's maximum rebate is $1,500 per year. 
• The Rock Island-Milan School District #41 will rebate is also 10 years, with 40% rebated in the first year, 36% in the second year, 32% in the third year, etc. 
• The property tax incentive is available for ten years following the issuance of a certificate of occupancy.
• Rebates will cover 120 total months of ownership to account for actual move-in and assessment dates.
• Rebate checks will be processed within 30 days of the City receiving a copy of the property tax bill.
• One check will be issued to you by the City, covering the Rock Island-Milan School District and City portions of the rebate. The City is reimbursed by the School District for the school portion.

To apply for either New Construction Property Tax Incentive, simply send a copy of your property tax bill to: City of Rock Island, Attention: Alan Carmen, Planning and Redevelopment Division, Rock Island City Hall, 1528 Third Avenue, Rock Island, IL 61201.

If you have any questions, please call City of Rock Island Planning & Redevelopment Division at 309.732.2900.