SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
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        


13 Comments
  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.


* Deal outline begins to emerge
* Question of the day
* Rauner proposal funds abstinence education grants
* Social services implode as middle class shrinks
* Reporters are understandably freaking out about Chicago's violence
* IDPH director violated rules, judge declares, so med-mar coverage must include PTSD
* "It was as if a mini-Capitol had sprouted"
* Kirk slams Duckworth and "crooked Democratic machine in Springfield" which defended her
* A little late
* Group warns Rauner stopgap does "nothing" for human service provider contracts
* "The wasteland that is Illinois"
* SUBSCRIBERS ONLY - Supplement to today’s edition
* *** LIVE *** Leaders meeting and session Coverage
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Good morning!
* Stay tuned
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............


Search This Blog...

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

Search the 98th General Assembly By Keyword

  
* OnePlus 3 vs iPhone SE vs Nexus 5X – Budget battle!
* Geekbench shows that Xiaomi “markw” is a mid-ranger
* FCC 600MHz auction has a $86.4 billion clearing target
* HTC starts $10 billion venture capital consortium
* Apple Seeds Fourth Beta of tvOS 9.2.2 to Developers
* [TA Deals] Save big on the Virtual Reality Box Headset
* Huawei pulls a Samsung with pre-IFA event

* Everything keeps coming back to Avisail Garcia
* White Sox shut out by Twins in opener
* White Sox continue to struggle vs. Central rivals
* White Sox shut out by Twins in opener
* Less than 2 days left to cast your All-Star vote
* Hit in 57 games, win $5.6 million
* 2016 Draft: Signing and bonus tracker

...............


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
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

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress

Loading


* ‘Daily Show’ tackles state budget impasse, blam.....
* More Springfield 'progress,' but no budget deal.....
* Cook County Board votes to put recorder of deed.....
* Rauner, Top Lawmakers Continue Budget Negotiati.....
* Illinois governor, leaders negotiating stopgap .....
* Illinois governor, leaders negotiating stopgap .....
* Illinois governor, leaders negotiating stopgap .....
* Illinois governor, leaders negotiating stopgap .....
* Illinois governor, leaders negotiating stopgap .....
* Illinois governor, leaders negotiating stopgap .....


* Illinois owes $82,000 in utility bills for Peoria
* Lawsuit filed by ex-officer against police chief dismissed
* Pet owners urged to protect pets during July 4 celebrations
* Money donated in bid to make Illinois site national park
* GOP, Democrats say progress made in Illinois budget talks
* Illinois lawmakers say progress made on stopgap budget
* Human Services caseworker pleads guilty to theft charges
* Judge orders Illinois to add PTSD to medical marijuana list
* Illinois' share of multistate VW settlement nearly $29M
* Witness in Urbana murder trial shot while sitting in car

* Follow live: Budget negotiations at the Illinois Capitol
* 'Daily Show' makes fun of Illinois budget situation
* State owes $82,000 in utility bills for Corrections facility in Peoria
* Carlinville train station upgrade dependent on state budget
* Governor, leaders say progress made on budget deal
* Deadrick Wolfer suspends House race vs. Scherer
* Higher education coalition urges full funding for both 2016, 2017
* Judge orders Illinois to add PTSD to medical marijuana list
* Deadrick Wolfer suspends Illinois House race vs. Scherer
* Former state worker pleads guilty to theft charges

* Gannett's little digital deal has a takeaway for Tronc
* McDonald's names Ogilvy's Colin Mitchell as global brand VP
* Citadel quadruples currency trading as Brexit spurs volume surge
* Just one local family made Forbes' list of the richest U.S. families
* City lawyers are the weak link in police accountability, records show


* In ‘Tarzan,’ Skarsgard found instant chemistry with Margot Robbie
* Wolves hire former Flyers coach Craig Berube as head coach
* Prosecutors: Man sexually abused 9-year-old girl on South Side
* Police: Man shot to death in Auburn Gresham
* Aside from ‘Hamilton,’ Revolutionary era inspires little art
* Ahead of Amazon Prime Day, Wal-Mart tries to move in
* Dennis Quaid’s wife files for divorce after 12 years
* Wine: White, rose wines a good choice during warmer months
* Robert Reich: What kind of patriot are you?
* Thursday Letters: New city tax bills say we need a better way


* Hague court to rule in July on challenge to China's sea claims
* Animal rescuer sues University of Illinois over files on dogs, cats in research
* Chicago's PrivateBancorp to be sold to Toronto-based CIBC for $3.8 billion
* CIA director: Istanbul attack 'bears the hallmarks' of the Islamic State's 'depravity'
* Cubs surge to 8-2 lead in 7th
* The Onion staff plot River North poop emoji pool raid ... no joke!
* Niles police: Gas can-toting man threatened to burn house, girlfriend
* Cook County Board votes to put recorder of deeds elimination question on ballot
* Prompted by luxury treehouse, Schaumburg imposes tax on Airbnb rentals
* Ex-deputy fire chief being charged with misdemeanor DUI after prosecutors reject felony


* Follow live: Budget negotiations at the Illinois Capitol
* 'Daily Show' makes fun of Illinois budget situation
* State owes $82,000 in utility bills for Corrections facility in Peoria
* Enough: Illinois' budget standoff must be resolved
* The story behind our front page editorial
* Carlinville train station upgrade dependent on state budget
* Governor, leaders say progress made on budget deal
* Deadrick Wolfer suspends House race vs. Scherer
* Guest Column: Illinois legislators fail to fix broken biometrics law
* Our View: The story behind Wednesday's front page editorial


* The Health Reporter Is In: June 29, 2016
* PODCAST: Community Elements is now named Rosecrance
* Man faces rape, kidnapping charges
* Bertrand charged with misdemeanor
* 06-29-16 Penny for Your Thoughts
* Judge declares mistrial in murder trial after witness is shot
* 06-29-16 Jim Turpin with the Freedom Celebration Committee
* 06-29-16 Jim Turpin with Tom Kacich and an update on the budget talks in Springfield
* Near-ideal weather across the Corn Belt
* UPDATED: Teachers picket at Unit 4


* United flight-attendant top pay to rise as much as 31 percent
* Fairs & festivals: Where to celebrate July 4th in the suburbs
* 'Legendary' brother was global citizen, St. Viator's first president
* ABC 7: Two found dead in Bensenville home
* Trial delayed for employee accused of covering up death at Allendale

* 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

* Illinois to get $17 million for HIV assist......

* Kirk Slams VA for Ignoring Veterans Crisis......
* Kirk slams Duckworth and “crooked Democrat......

* Judge Robin D. Shoffner appointed to 8th Subcircuit vacancy
* Trump lags Clinton by 12 points in national poll; neck-in-neck in four swing states
* Romano: Did a tax-exempt gay rights group host a partisan parade attack?
* Six wealthy guys who lost billions yesterday.
* Abstinence education.
* Illinois Secretary of State harvests $10 million in fines from unsuspecting citizens
* Syverson points to Chicago politicians as the culprits blocking budget progress
* 19th District Officers Hold Week Of Public Events Beginning Now
* Kirk uses terrorist tragedy to crusade against citizen rights
* Trump issues TPP challenge to Clinton: will she answer?


* Emergency Management Officials, National Weather Service Encourage Winter Preparedness - November is Winter Weather Preparedness Month in Illinois
* Keep Your Family Safe This Winter - November through February are leading months for carbon monoxide related incidents
* Governor Takes Bill Action
* Illinois Department of Labor Director Hugo Chaviano Awards Governor’s Award for Contributions in Health and Safety to the Illinois Refining Division of Marathon Petroleum Company LP
* State Regulator Elected Treasurer of Interstate Medical Licensure Compact




Hosted by MCS -- CapitolFax.com Privacy Policy -- SUBSCRIBE to Capitol Fax -- Advertise Here -- Mobile Version -- Contact Rich Miller