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Legislative Alert: Illinois governor signs bill to revive key job creation incentive

Key Job Creation Incentive Returns to Illinois

Following months of debate in Springfield, Illinois Gov. Bruce Rauner signed legislation to revive the Economic Development for a Growing Economy Tax Credit (EDGE) program. Expired since April 30th, the Land of Lincoln has been without a major job creation incentive in the state’s economic development toolbox. With this new law, the EDGE program is now back online through June 30, 2022.

The EDGE program still looks very similar to the tax credit that expired earlier this year. However, there are several key changes to the program to note, including the total potential value, priority for underserved areas, and a new clawback provision, among others.

Program Details

Under the new law, the EDGE program is back online in the Land of Lincoln. Below are key aspects of the revived program, including several new provisions:

  • Total credit value cannot exceed the lesser of one of the following: Sum of 50% of the of Incremental Income Tax attributable to New Employees and 10% of the training costs of New Employees; OR 100% of the Incremental Income Tax attributable to the New Employees.
  • If located in an underserved area, the total credit value cannot exceed the lesser of one of the following: 75% of the Incremental Income Tax attributable to New Employees and 10% of the training costs of New Employees; OR 100% of the Incremental Income Tax attributable to New Employees.
  • For certain projects, the credit value may be increased by 25% for Retained Employees.
  • If a company ceases principal operations in Illinois, the tax credit received up to that point may be clawed back by the state.
  • If a company has more than 100 employees, an investment of at least $2,500,000 in capital improvements is required. If the applicant has less than 100 employees, there is no investment requirement.
  • If a company has more than 100 employees, it must employ a number of New Employees in the state equal to the lesser of 10% of the number of Full-Time Employees employed by the applicant worldwide; OR 50 New Employees.
  • If a company has 100 or fewer employees, it must employ a number of new employees in the state equal to the lesser of 5% of the number of Full-Time Employees employed by the applicant worldwide; OR, 50 New Employees.
  • Extends the program through June 30, 2022.

For more information on the program, please contact our incentive experts in Chicago.

 

Hickey & Associates | Chicago Office

125 S Clark Street, 17th Floor

Chicago, IL 60603

P: (847) 960.5531

incentives@hickeyandassociates.com

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