Developing in Eau Claire means working with a city that believes in partnership. Whether you’re building new housing, reimagining a downtown block, or turning a vacant lot into a mixed-use hub, our goal is to help make your numbers work. Eau Claire offers a full range of local, state, and federal incentives designed to reduce upfront costs, unlock challenging sites, and reward investment that strengthens the community. Think of this as your toolkit for building here.
Eau Claire’s local incentives are designed to make good projects possible by helping to offset infrastructure costs, encourage redevelopment in key areas, and reduce financial risk on complex sites. Developers who partner with City staff early can align project goals with community priorities and unlock support that makes investment go further.
A financial tool that reinvests the new tax value created by a project back into project-related costs
May Be Available to: Developers of commercial, residential, or mixed-use projects in designated districts
Potential Uses: Site preparation, public infrastructure improvements, utility extensions, environmental remediation, gap financing
Partnership opportunities with the City of Eau Claire Redevelopment Authority (RDA) on select sites
May Be Available to: Developers working on projects that align with district redevelopment plans
Potential Tools: Land conveyance, site assembly, TIF participation, environmental cleanup support, and assistance through state and federal grant programs
Support for projects that require environmental cleanup, demolition, grading, or infrastructure work
May Be Available to: Developers or businesses investing in redevelopment of underutilized or City-owned sites
Potential Uses: Demolition of obsolete structures, grading or soil stabilization, environmental testing or remediation, and utility extensions
Funding and technical assistance for assessment and cleanup of contaminated or underutilized sites
May Be Available to: Developers planning to revitalize former industrial or commercial properties
Potential Sources: Wisconsin Department of Natural Resources (DNR), WEDC Brownfield Grants, and EPA programs accessed through the City of Eau Claire
Locally administered financing designed to bridge the gap between private funding and total project costs
May Be Available to: Developers or businesses investing in new construction or rehabilitation within city limits
Potential Uses: Building improvements, property acquisition, construction, working capital, and other eligible project expenses
Zero-interest financing designed to help property owners upgrade the exteriors of commercial buildings
May Be Available to: Property owners or tenants in designated redevelopment areas and corridors within city limits
Potential Uses: Storefront restorations, masonry repair, signage, lighting, and other exterior or code-related improvements
State incentives extend a project’s reach beyond local resources by strengthening a developer’s capital stack, encouraging adaptive reuse, and rewarding developments that add long-term value to Wisconsin communities. That’s why Eau Claire’s team works closely with state partners to help developers pair these tools with local approvals and move projects efficiently from planning to construction.
| Tax Rate | Wisconsin | Minnesota | Illinois |
|---|---|---|---|
|
Corporate |
7.9% |
9.8% |
9.5% |
|
Personal Income |
3.50%-7.65% |
5.35%-9.85% |
4.95% |
|
Sales & Use |
5% |
6.875% |
6.25% |
|
Unemployment |
Base: $14K |
Base: $40K |
Base: $13K |
|
Compensation |
0.27%-9.8% |
0.67%-10.816% |
0.85%-8.65% |
Wisconsin’s Manufacturing & Agriculture Credit gives entities in these industries an effective corporate tax rate of 0.4%.
Wisconsin businesses can claim tax credits against the corporate income and franchise tax. These credits generally fall into six categories:
Manufacturing Machinery & Equipment
Merchant & Manufacturing Inventory
Waste Treatment Facilities
Computer Equipment
Alternative Energy
Manufacturing & Biotech Research
A refundable Wisconsin state tax credit designed to support businesses undertaking major expansions or relocations into certified enterprise zones within the state
May Be Available to: Businesses expanding or relocating operations in designated Wisconsin enterprise zones (subject to certification by the Wisconsin Economic Development Corporation)
đź”— wedc.org
A performance-based, refundable state tax credit designed to help businesses expand, relocate, or invest in Wisconsin by linking tax benefits to job growth, capital investment, training, or headquarters retention/relocation
May Be Available to: Businesses expanding operations in Wisconsin, relocating to Wisconsin, or making significant capital investment by meeting the certification requirements via the Wisconsin Economic Development Corporation (WEDC)
đź”— wedc.org
A state tax credit that rewards manufacturing and agricultural production in Wisconsin by reducing income tax liability for qualifying businesses
May Be Available to: Businesses (corporations or pass-through entities) that own or rent and use real or personal property in Wisconsin that is assessed for manufacturing or agricultural use, and that derive eligible “qualified production activities income” from that property
đź”— revenue.wi.gov
A state tax credit designed to reward companies that perform qualifying research and development activities within Wisconsin
May Be Available to: Businesses (corporations, S-corporations, partnerships, LLCs, or individuals/shareholders) that incur Wisconsin-qualified research expenses (QREs) in the taxable year and meet the statutory calculation requirements
đź”— revenue.wi.gov
A state tax credit designed to encourage investment in early-stage Wisconsin businesses that show strong potential for innovation and job growth
May Be Available to: Angel investors, angel investment networks, and certified venture funds that make full-equity (cash) investments in businesses headquartered in Wisconsin and certified by the Wisconsin Economic Development Corporation (WEDC)
đź”— wedc.org
State tax credits designed to encourage private equity investment in early-stage Wisconsin businesses certified by Wisconsin Economic Development Corporation (WEDC)
May Be Available to: Accredited individual investors or angel investment networks (Angel Tax Credit) and certified fund managers (Early Stage Seed Credit) making cash equity investments in a Wisconsin-based “Qualified New Business Venture” (QNBV)
đź”— revenue.wi.gov
Note: Most grant funds are awarded to the City of Eau Claire or partner organizations and then aligned with eligible private development projects. Our team can help determine which tools best fit your project.
Funding for Phase I/II assessments and limited demo/cleanup where contamination fears block redevelopment
Developer Benefit: Pays for due diligence and early cleanup, de-risking sites before committing capital
đź”— dnr.wisconsin.gov
An EPA-funded grant program through the Wisconsin Department of Natural Resources (DNR) providing zero/low-interest loans and grants for brownfield cleanup
Developer Benefit: Could fund remediation and close environmental gaps on redevelopment sites
đź”— dnr.wisconsin.gov
Grants to remediate environmental contamination on commercial/industrial brownfield sites to position them for redevelopment
Developer Benefit: Could directly reduce cleanup costs and risk on tricky sites
đź”— wedc.org
Grants to help redevelop large, idle, or underutilized industrial/commercial sites (2+ years inactive), covering demo, remediation, infrastructure, site prep, etc.
Developer Benefit: Can help turn unattractive or expensive sites into “shovel-ready” opportunities that can be paired with TIF and private equity
đź”— wedc.org
Competitive grants for catalytic downtown and commercial corridor projects that redevelop, infill, or reuse key properties
Developer Benefit: Can be plugged directly into a capital stack for mixed-use, upper-floor housing, infill, and adaptive reuse if the project is visibly catalytic
đź”— wedc.org
Grants (typically up to 50% of eligible cost) for road, rail, or transportation improvements needed to secure job-creating projects
Developer Benefit: Can fund turn lanes, access roads, freight/rail upgrades, etc., tied to development projects
đź”— wisconsindot.gov
CBDG – Economic Development
Grants to help local governments assist with business expansions that create/retain jobs for low- to moderate-income (LMI) residents
CDBG – Public Facility Economic Development
Grants for public infrastructure that directly supports business expansion/retention (water, sewer, streets, etc.)
CDBG – Planning
Grants that can underwrite small area plans or redevelopment studies that set up future private projects
CDBG – Affordable Housing
Grants to help communities improve and expand the supply of affordable housing for low- to moderate-income families through no-interest, deferred loans
CDBG – Rural Economic & Area Development Initiative
Grants for local governments to grant funds to certified Community Development Organizations for economic, housing and job training projects that benefit low- and moderate income individuals
CDBG – Public Facility
Grants to help support infrastructure and facility projects for communities, including streets, drainage systems, water and sewer systems, sidewalks, and community centers
CDBG – Emergency Assistance Program
Grants to assist communities with recovery from a recent natural or manmade disaster
đź”— doa.wi.gov
Grants to municipalities to activate underused spaces into public gathering areas and placemaking projects
Developer Benefit: Can enhance adjacent private projects (downtown alleys, plazas, courtyards, trailheads) and make marginal sites more attractive
đź”— wedc.org
Federal programs offer another layer of opportunity for transformative projects by helping to close major funding gaps, reduce redevelopment costs, and encourage investment in areas that advance broader economic and community goals. When combined with local and state support, they can turn high-impact concepts into fully realized projects.
A federal program that encourages private investment in economically distressed communities by offering capital-gains tax benefits for qualified investments made through Opportunity Funds
May Be Available to: Investors or developers reinvesting capital gains into certified Qualified Opportunity Funds (QOFs) that, in turn, invest in real estate or operating businesses located within designated Opportunity Zones
đź”— irs.gov
A federal incentive that encourages the preservation and adaptive reuse of historic buildings by offering a tax credit for qualified rehabilitation expenses
May Be Available to: Developers rehabilitating income-producing buildings that are listed on, or eligible for, the National Register of Historic Places—or that contribute to a registered historic district
đź”— irs.gov
A federal program that incentivizes private investment in affordable rental housing by offering income tax credits to developers of qualifying projects
May Be Available to: Developers building or rehabilitating rental housing that sets aside a portion of units for low- to moderate-income households, with rent restrictions in place for at least 30 years
đź”— congress.gov
A federal program that attracts private investment to economically distressed communities by offering investors a tax credit for equity investments in qualified projects
May Be Available to: Developers or businesses undertaking commercial, mixed-use, or community-serving projects located in federally designated low-income census tracts
đź”— cdfifund.gov
A federal tax credit that encourages businesses to invest in renewable energy systems and energy-efficient technologies by offsetting a portion of installation costs
May Be Available to: Commercial property owners, developers, and businesses that install eligible renewable-energy systems on new or existing buildings
đź”— irs.gov
A federal tax credit that rewards employers for hiring individuals who face significant barriers to employment
May Be Available to: Employers (for-profit or tax-exempt) who hire someone from a certified “targeted group” (such as qualified veterans, ex-felons, recipients of certain public assistance programs, or long-term unemployed individuals) and who meet the required screening and certification process
đź”— irs.gov
Every development project is unique, but here’s what to expect when you partner with Eau Claire.
Schedule a Consultation
Reach out early, ideally while you’re still shaping your concept or running project pro formas. The City of Eau Claire Economic Development Division and our partners will walk through your site, timeline, and investment goals to identify potential incentives and approvals. Early discussions often save time later by ensuring your project aligns with district goals and funding requirements from the start.
Review the Project Fit
Once submitted, City staff will then review your proposal for compatibility with zoning, redevelopment plans, and community priorities. This stage helps confirm whether your project meets the criteria for incentive consideration and where adjustments might strengthen the application. You’ll get clear feedback and guidance to help refine your concept before formal submission.
Build the Incentive PackageÂ
If your project concept aligns with City plans and goals, the Economic Development Division will help structure an incentive package tailored to your needs. This may include modeling potential TIF participation, identifying supporting grants, or coordinating with partner agencies. Together, we’ll outline a realistic timeline for reviews and approvals so you can plan your financing and construction phases with confidence.
Secure Approvals
Depending on the type of incentive, formal approvals may be required from Eau Claire City Council, the Redevelopment Authority, the Loan Administration Board, or the Finance Department. We’ll help prepare the necessary materials, including development agreements, financial projections, and public benefit documentation, and guide you through the meeting schedule and process.
Implement the Agreement
After approvals are in place, agreements will be finalized  so you can move into project delivery. The City tracks performance milestones like construction start, investment levels, occupancy, or job creation, ensuring accountability and mutual success. Our goal isn’t just to approve projects; it’s to see them built, occupied, and contributing to Eau Claire’s continued growth.
Connect with the City of Eau Claire Economic Development Division early to explore incentive eligibility and timelines for your development project.