Illinois suspends EDGE tax credits and other incentives
Illinois Governor Bruce Rauner issued a press release to address actions being prepared in response to the Illinois budget deficitof nearly $4-billion. Effective immediately, there is a suspension of all future incentive offers to companies for business attraction and retention including: EDGE Tax Credits, Large Business Attraction Grants, Employer Training Investment Program Incentive Grants, and Prime Sites Grants. Additionally, the Department of Commerce and Economic Opportunity (DCEO) will defer approvals for film and tax credits applications, and High Impact Business designations.
The release notes that all commitments outstanding in these programs will be honored. The DCEO is also anticipating providing notice for the July 1 suspension of the State Low Income Home Energy Assistance Program; however, the federal portion of the program will continue. http://www3.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=2&RecNum=13115
Proponents of the credit programs say they’re necessary to make the state competitive — acknowledging that lower tax burdens boost growth. With both Wisconsin and Indiana competing with attractive credit offerings and other business incentives, it is unclear how this strategy will help Illinois in the long run.
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