As we’ve mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.
We were recently asked about credits and incentives in Illinois
, and their state economic development professionals gave us some details (Illinois incentives site click here
Illinois offers very few credits and incentives for new and existing businesses. CNBC ranked Illinois #24 in their 2016 America’s Top States for Business survey (Georgia was #8 in the same survey). Rating heavily skewed by availability of capital and education points. Most current surveys and assessments rank Illinois near the bottom in business friendliness.
Incentives and Credits include:
EDGE (Economic Development for a Growing Economy)
— Recent changes include eliminating agreements that favor large companies that already have adequate financing. Changes also eliminate credits for job retention, granting them only for new job creation. The new state plans also restrict the way jobs are counted and prohibit multiple credits for the same facility.
— Some local tax abatement and other financing programs, depending on the project.
Most Illinois incentives have been discontinued or have expired.
Compared to Georgia, Illinois has:
- Much higher corporate and personal income tax rates.
- Higher combined state and local tax burden
- A far smaller range of incentives.
- Pre-approval required for all incentives
To summarize, Illinois is below average for business tax incentives, but the weather is below average too!