SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
To subscribe to Capitol Fax, click here.
Today’s numbers

Tuesday, Feb 4, 2014

* From COGFA’s newly released study of business tax incentives

According to the latest information from the Comptroller’s Tax Expenditure Report, businesses in Illinois benefited from over $1.15 billion business related tax expenditures.

* The largest tax expenditures reported in the FY 2012 issue were:

    1. Sales Tax Expenditures:
    * Manufacturing and Assembling Machinery and Equipment Exemption ($183 M)
    * Retailer’s Discount ($121 M)
    * Rolling Stock Exemption ($74 M)
    2. Corporate Income Tax Expenditures:
    * Illinois Net Operating Loss Deduction ($219 M)
    3. Other Tax Expenditures:
    * Sales for Use Other than in Motor Vehicles Exemption ($116 M)

According to a Department of Revenue report, in 2012, Enterprise Zone, High Impact Business, and River Edge Redevelopment Zone tax incentives resulted in the State foregoing approximately $115 million in tax revenue.

In the aggregate, businesses receiving tax incentives reported creating 4,671 jobs and investing approximately $3.7 billion in 2012

- Posted by Rich Miller        

  1. - archimedes - Tuesday, Feb 4, 14 @ 9:18 am:

    Hmm. I know the tax incentives are over time, some credit for past and some intended to spur the future on. But, just dividing the incentive into the jobs is a cost of $246,000 per job….

  2. - Bill White - Tuesday, Feb 4, 14 @ 9:25 am:

    This paragraph jumped out at me as being rather candid:

    === This unfortunately leaves lawmakers, in a time of struggling budgetary conditions where additional jobs are needed, the unenviable task of deciding which tax incentive is important enough to keep, which new tax incentives should be offered, and which incentive can be sacrificed as a target of much-needed revenues for the State. And this all must be done with limited available information to make these decisions. ===

  3. - Commander Norton - Tuesday, Feb 4, 14 @ 9:28 am:

    It should go without saying but probably still needs to be said anyway - correlation does not imply causation.

    Just because businesses receiving tax incentives invested $3.7 billion in the state does not mean that they would not have invested so much or created so many jobs had they not received those incentives. The key question is, to what extent did incentives spur investment, hiring and growth that would not have occurred without them? Since businesses are always daring the state to call their bluff, I’m guessing there’s no real way to know.

  4. - Bill White - Tuesday, Feb 4, 14 @ 9:37 am:

    I’ve been skimming the entire report and I think there is a tremendous amount of useful information here.

    One point that should also be stressed is that economic development should also be measured by comparing metropolitan regions rather than states. From the perspective of economic geography state lines can be artificial constructs.

  5. - Liandro - Tuesday, Feb 4, 14 @ 9:44 am:

    My math also comes to about $246,200/job, although as said that should be spread out over multiple years assuming they are permanent or semi-permanent jobs.

    Commander Norton’s question is very pertinent, then: how much of that $3.17 billion re-investment was impacted by the tax breaks? Probably a good chunk, but I agree that it would probably be hard to tell. It would certainly vary from company to company. An aggressively growth-oriented company would put all of it towards re-investment, but most would probably split between de-leveraging and growth, with some possibly just hording. Some of those tax breaks, though, come in the middle of expanding.

  6. - Formerly Known As... - Tuesday, Feb 4, 14 @ 9:52 am:

    @archimedes - I will gladly contribute to Illinois’ economic recovery and help provide taxpayer relief by accepting a job at “only” half that price. Let’s say $123,000 plus benefits, of course.

    Anyone else want in on this? It’s for the good of the state.

  7. - Right Field - Tuesday, Feb 4, 14 @ 10:16 am:

    Hate to go down this road, but what jobs weren’t lost as a result of the expenditures? It’s not a one-sided equation.

  8. - Liandro - Tuesday, Feb 4, 14 @ 10:41 am:

    @Formerly Known As…

    Sure, for one year. If the job stays for seven years, you’re only making $35,171.43/year, and that doesn’t count anything that was spent on capitol improvements and other growth. I’m not defending all the credits, just pointing out that taking a one-year view is far too simplistic. When a business expands, they’re biting off a multi-year (multi-decade?) commitment.

  9. - Formerly Known As... - Tuesday, Feb 4, 14 @ 10:55 am:

    @Liandro - I would actually take things one step further and add in the costs of overhead, utilities, support staff and so on during those several years.

    It is a decidedly more complex equation than simply a one-year proposition - even those these numbers represent the cost of one year of these tax incentives.

    It is also decidedly apparent that my snark ain’t what it used to be.

  10. - Liandro - Tuesday, Feb 4, 14 @ 10:58 am:

    Lol, I agree that the $246,200 number hit me as large. One wonders how many of those are actually effective at promoting hiring/growth, and how many are just lining pockets? It’s a lot of cash, but it’s a big state, too.

  11. - DuPage - Tuesday, Feb 4, 14 @ 1:57 pm:

    These sort of numbers can be misleading. Exemptions for example, state and local governmental agencies are exempt from a lot of state taxes. Those state trucks plowing the snow, have state plates that are basically free. That comes up to millions of dollars, on paper. In reality, having the state pay the state for license plates every year would actually cost the state money for all the paperwork, for a zero gain on the bottom line.

  12. - 4 percent - Tuesday, Feb 4, 14 @ 2:46 pm:

    I’m seeing alot of confusing math. $115 million divided by 4671 jobs is $24,619 per job (not $246,000). Plus they invested $3.7 billion in capital infrastructure. So I’m sure there is sales tax, property taxes and employment taxes along with income taxes paid by the employees.

  13. - Smitty Irving - Tuesday, Feb 4, 14 @ 4:21 pm:

    When a Governor introduces a budget, it should include “tax expenditures” by category and recipient (above a certain amount - I don’t need to know each mortgage deduction, etc.). What is the difference between a direct subsidy that generates a payment from the State and a tax deduction / tax credit? Other than the deduction / credit is now hidden from public view.

Sorry, comments for this post are now closed.

* Question of the day
* Everybody wants to get into the act
* The opposite of slick
* The Trib's closing argument: It's all about Madigan
* The expectations game
* Did Rauner kick a big can?
* More unintended consequences?
* From 23 down to 0
* Hey, Cub fans!
* An amateur nails it
* It can always get worse
* Republicans dispute Trib numbers, say Madigan doing better than realized
* Trump not cooperating with Rauner's best laid plans
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* This just in... $12 million contribution to Leader Durkin, $2 million to Munger
* Yesterday's blog posts

Visit our advertisers...






Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

* Google Pixel subjected to torture tests
* Facebook Messenger now supports PayPal payments in bots, will track your PayPal receipts
* Apple Watch Nike+ prepares for launch as general sales numbers lead the pack
* Apple Releases watchOS 3.1 With Bug Fixes
* Galaxy Note 7 owners to get huge discounts on future Samsung phones
* Apple Releases tvOS 10.0.1 With Bug Fixes, Performance Improvements
* It’s alive: Android 7.1 Nougat (unofficially) comes to the Galaxy Nexus

* Podcast: 2016 White Sox Outfield Review
* mikecws91's Offseason Plan
* The ten best developments of the 2016 White Sox season
* KenWo4LiFe's off-season plan
* Getz to oversee White Sox Minor Leagues
* Getz to oversee White Sox Minor Leagues
* White Sox officially appoint Chris Getz as Director of Player Devel...


Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005


RSS Feed 2.0
Comments RSS 2.0


* Contested Legislative Races - Chicago Tribune..
* RAUNER in boss mode -- FEDS lag in gun prosecut.....
* Food stamp eligibility waiver sought - Jacksonv.....

* Obama's library materials to travel from capital to Illinois
* Visitor killed by a falling tree at national monument ID'd
* Indiana State freshman falls from boat in Illinois, dies
* 3 Chicago women killed in Milwaukee Uber traffic collision
* Chicago women killed in Milwaukee Uber car crash identified
* Authorities: Skydiver dies after hitting sign in Illinois
* In year of 3,000 shootings, a teen faces life beyond bullet
* In year of 3,000 shootings, a teen faces life beyond bullet
* Chicago woman accused of giving gun to niece goes on trial
* EXCHANGE: Students toss handmade 'drones' for science lesson

* Feds end lease with Illinois for state park, citing neglect
* Statehouse Insider: Tomorrow's a new day; in Illinois, that may not be good
* Cook County lawyer who posed as judge criminally charged
* 1,100 non-union state workers getting $3,016 bonuses
* Springfield veteran honored for volunteer work
* Central Illinois soldier killed in Afghanistan
* Rauner administration awarding more than $3 million in bonuses to non-union workers
* SIU injury-prevention program reinstated through stopgap budget
* Survey: 386 state jobs could relocate to Springfield
* SIU injury-prevention program reinstated through state's stopgap spending plan

* Longtime Silver Cross Hospital CEO to retire
* Like our roundup? Share it around.
* AT&T buying Time Warner in $86 billion deal
* It's official: AT&T buys Time Warner for $85 billion
* There's a new way to replace old gas mains—but not in Chicago

* Person found dead after house fire in unincorporated Glen Ellyn
* Lexus, Toyota and Buick top new auto reliability survey
* 23-year-old man shot to death in Waukegan
* Doubek: 10 big decisions to weigh when voting this year
* Five provocative new health books interesting reads
* Person on tracks briefly suspends CTA Pink Line service
* 1960s pop singer Bobby Vee has died at age 73
* Umpires set for World Series
* Cubs clinch most-viewed LCS game on TV since 2010
* 9.7 million saw Cubs’ clincher on TV, most for an LCS since 2010

* Cubs yank World Series ticket offer to Chicago aldermen
* NTSB to investigate California bus crash that left 13 dead, 31 injured
* Army officials: 10 soldiers asking to be recognized as transgender
* 'She wanted to kill her husband rather than divorce': Greco trial opens
* Don't believe the polls, Trump says, 'we are winning'
* Former Gary employee indicted in computer equipment theft scheme
* Fewer choices, higher prices in Illinois as 2017 Obamacare packages are unveiled
* 108 free hot dogs to celebrate Cubs trip to the World Series
* Mayor Emanuel unveils neighborhood arts project
* Indiana State freshman falls from boat in downstate Illinois, dies

The widget AQL4JYGHIY powered by Feed Informer does not exist.

* Our Opinion: Leslie Munger endorsed for Illinois comptroller
* Feds end lease with Illinois for state park, citing neglect
* Our Opinion: With poor choices, Clinton gets nod for president
* Statehouse Insider: Tomorrow's a new day; in Illinois, that may not be good
* Bernard Schoenburg: DelGiorno apologizes for backer's vulgar Facebook post
* Cooler temperatures lead to greater needs
* Women for Women tops half million mark
* Cook County lawyer who posed as judge criminally charged
* 1,100 non-union state workers getting $3,016 bonuses
* Springfield veteran honored for volunteer work

* Crash blocks I-57 northbound lanes
* Elkville man arrested for possession after he ran from police, hid for 3 hours
* Two men injured in early morning shooting in Murphysboro
* House fire part of training exercise
* NG Prep Football Top 10: Week 10
* Noon update: Cooler today, Baer ready to lead, and the Cubs
* PODCAST: Monday Morning Quarterbacks 10-24-16
* Carbondale Chamber speaks against proposed 1 percent tax for schools
* Sparta woman arrested for possession of meth
* Eldorado man gets 20 years for sexual assault of child

* Nordstrom Rack opens Thursday in Algonquin
* Man dies in house fire near Glen Ellyn
* University Center of Lake County hosts open house Thursday
* Fire causes roof collapse on home near Glen Ellyn
* Roselle umpire Tony Randazzo named to World Series crew

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Dick Durbin, Sheila Simon to talk budget i......
* Sen. Durbin, Rep. Davis Weigh In On Indepe......

* A summary of Daily Herald endorsements - C......
* US Senate race in Illinois loses some of i......

* Illinois' U.S. Senate, 13th Congressional District Candidates To Debate Next Week
* Injunction Decision Delayed In Chicago City Council Open Meetings Case
* Workers File Charges Against Jam Productions With Labor Board
* Protesters To Big Banks: Return Profits From 'Toxic' Interest Rate Swaps With Illinois
* Government Report Sparks Debate Over U.S. Fuel Economy Standards
* Report: Rauner Has Donated $46 Million In Political Funds To GOP Candidates
* Chicagoans Protest Republican 'Attacks On Women' Outside Trump Tower
* Cook County Minimum Wage Plan Slated For Committee Hearing
* Early Voting Begins Monday In Illinois
* Cartoon of the Day - 10/20/16

* Illinois EPA Sponsors Interactive Environmental Education Event with Riverton Elementary School - Riverton Third and Fourth Graders “Dive In!” to Celebrate the Environment
* Illinois Department of Veterans’ Affairs Honors Veteran Mr. George Pempek
* Illinois Partners with State of Telangana, India to Strengthen Smart State Initiatives - State to state agreement to accelerate opportunities and service to citizens
* Illinois EPA Announces Vehicle Emissions Testing Network Updates - New Contract to Offer More Efficient, Less Expensive Tests
* Annual Training Underway For Gas Station Owners, Service Technicans

      Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller