Home Buying

Property Tax Rebate Program

To help spur new residential development in the City of Rockford, we have established a new three-year Tax Rebate Program for newly-built construction.

Who is eligible for this program?

Anyone who constructs a single family, townhome, two-family, three-family or multi-family structure in the City of Rockford and Rockford Public School district is eligible. Single family homes must be owner-occupied.

How does a participant receive the tax rebate?

The program will provide a three-year property tax rebate, issued at the end of the tax year in a single lump sum.

How long will this program run?

Construction must start before December 31, 2024, and be completed within 12 months.

Will I receive a rebate for my entire property tax bill?

The two taxing bodies that have approved this program - City of Rockford and Rockford Public Schools - represent more than 70% of the tax bill for City of Rockford residents.  If other taxing bodies sign on to the agreement, that percentage will increase.

Why was this program established?

This program will create an attractive market for homebuyers, investors, developers and renters, while stabilizing neighborhoods.  The City currently has record low housing inventory. Without new housing stock, the City will only see declining population. As our economy continues to grow and jobs are created, it is critical individuals have housing choices available. New construction also increases property values and reduces property taxed paid by all.

Are any other incentives being offered?

Yes. In conjunction with the property tax rebate program, Rockford City Council also approved that eligible new residential construction projects will have their building permit, plan review, inspection fees, water main connection and water meter connection fees waived provided that they obtain a permit prior to December 31, 2024, begin construction and diligently pursues construction to completion.

Property Tax Rebate Program Guidelines and Form 2023