Buffalo Grove renews sales tax agreement with tech firm planning to expand headquarters
Buffalo Grove has renewed its economic incentive agreement with a tech firm headquartered in the village's industrial district, a deal that will help with the company's plans to expand.
The village board Monday voted to extend its sales tax-sharing agreement with Business IT Source (BITS) until June 30, 2028. Founded in 2009, BITS provides mid-sized to large companies with information technology services from major manufacturers.
BITS is expanding its facility at 850 Asbury Drive from 39,000 square feet to more than 91,000 square feet and extending its lease there.
The original 2017 agreement, which had been set to expire in May 2024, led the firm to move to Buffalo Grove from its previous location in Vernon Hills.
"BITS is a wonderful company to have in our village," Village President Beverly Sussman said.
The terms of the agreement remain the same, with the village sharing 75% of its home rule sales tax with BITS for the first $40 million in annual taxable sales. BITS will receive 100% of the tax revenue collected after sales exceed $40 million. The village will continue to retain 100% of the Retailer's Occupation Tax it receives from the state.
Deputy Village Manager Chris Stilling said BITS is one of the village's largest sales tax generators.
"(Village) staff believes the amendment is beneficial as it ensures that BITS remains in the village for an extended period of time," he said.