Capitol Fax.com - Your Illinois News Radar » State gives suburban company $2.4 million to move 15 miles to Chicago
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
State gives suburban company $2.4 million to move 15 miles to Chicago

Thursday, Sep 26, 2013

* Power Construction is moving from Schaumburg to Chicago (15 miles, according to Google) and is getting $2.4 million in state assistance over ten years. That naturally prompted questions

Dan Seals, the former congressional candidate now serving as assistant director of the Ill. Department of Commerce and Economic Opportunity, was asked how he justifies giving a tax break to an Illinois company to move a short distance from suburb to city.

“We didn’t give a company a tax credit to move a few miles. What we did is saw a company that we thought was a good company that was looking to leave the state entirely that was receiving several million dollars to come to another state. We wanted to compete. We thought it was a good company to retain. And that’s what we did. And we won,” Seals said.

“You only get [the state aid] if you create the jobs. If you don’t create the jobs, you don’t get `em. And they’re based on the tax revenue that comes off the job. So, the state comes out ahead.”

Power got an EDGE tax credit. About the EDGE credit

The EDGE program is designed to offer a special tax incentive to encourage companies to locate or expand operations in Illinois when there is active consideration of a competing location in another State.

The program can provide tax credits to qualifying companies, equal to the amount of state income taxes withheld from the salaries of employees in the newly created jobs. The non- refundable credits can be used against corporate income taxes to be paid over a period not to exceed 10 years.

To qualify a company must provide documentation that attests to the fact of competition among a competing state, and agree to make an investment of at least $5 million in capital improvements and create a minimum of 25 new full time jobs in Illinois.

In other words, if a company is being lured by another state and they’re willing to create some new jobs, the state can let them use their employees’ state withholding taxes to lower their corporate income tax bill. Power says it will create 30 new jobs.

Still, it would be nice to know what state was competing with us and how much they were offering.

- Posted by Rich Miller        

18 Comments
  1. - John Bambenek - Thursday, Sep 26, 13 @ 10:41 am:

    So, 2.4 Million for 30 jobs, that’s roughly 800k/job, or over 10 years, 80k per head per year.

    That return on investment kinda sucks.


  2. - OneMan - Thursday, Sep 26, 13 @ 10:44 am:

    Looking forward to the Quinn press release in 3 months about the ‘jobs’ created.


  3. - wordslinger - Thursday, Sep 26, 13 @ 10:46 am:

    From the Power website:

    –Founded in 1926, Power is the largest construction firm focused exclusively on serving greater Chicago.–

    That would seem to limit other states in the running.

    And even if they were looking at, say, Hammond, what benefit would that be to Indiana, or loss to Illinois? The lion’s share of their business appears to be in greater Chicago.


  4. - Just Observing - Thursday, Sep 26, 13 @ 10:49 am:

    It seems relatively easy to create documentation that they are considering another state. All a company has to do is reach out to another state and play that state against Illinois.

    Illinois would be far better off focusing on creating a universal business friendly environment instead of trying to pick winners and losers. As it, such programs are ripe for unfair treatment, abuse, and creates a more complex business climate.


  5. - PoolGuy - Thursday, Sep 26, 13 @ 10:51 am:

    John, I think you mean $80k/job over 10 years which would be $8K per head peer year


  6. - John Bambenek - Thursday, Sep 26, 13 @ 10:56 am:

    Nevermind, I put the crackpipe down.

    All better now.


  7. - Wumpus - Thursday, Sep 26, 13 @ 10:59 am:

    Great, they are starting a war with Schaumburg. Jerks. Dan Seals is part of the orphanage of failed congressional opponents working for Quinn as stated by the WLSAM radio morning newsguy.

    Rich, you should threaten to move out of state to Florida or Louisiana.

    That way, you and Barton could set up in the Trump Tower with your EDGE credit. Wumpus would be head of security for the added job. Plus, you could pay Barton in more than Twinkies and Ferrara Pan Candy, so that would be 2 jobs.


  8. - PoolGuy - Thursday, Sep 26, 13 @ 11:00 am:

    no worries, it’s a heck of a drug, to paraphrase Rick James


  9. - bk - Thursday, Sep 26, 13 @ 11:07 am:

    Keep picking and choosing who gets breaks. That is the IL way. Seems to chase the rest away. NOBODY likes the game played that way. So they take there ball and go.


  10. - Todd - Thursday, Sep 26, 13 @ 11:08 am:

    yea to bad the Governor is bent on driving other business’ out of the state. . .

    http://www.guns.com/2013/09/20/lewis-machine-tool-relocate-illinois/

    say bye bye to 100 plus jobs and a company that does by my guess $60 million a year


  11. - Sir Reel - Thursday, Sep 26, 13 @ 11:13 am:

    This state against state poaching is so common now’s I bet there’s consultants who specialize in advising companies on how to work the system.


  12. - bk - Thursday, Sep 26, 13 @ 11:15 am:

    My entire family has left IL and it makes me sad. We are now selling and moving away from this socialist experiment based on the politics of this State. Keep an eye on your Republican neighbor States. What a contrast!!!!!


  13. - Rufus - Thursday, Sep 26, 13 @ 11:21 am:

    Corporate welfare is overtaking people welfare.


  14. - Old and In The Way - Thursday, Sep 26, 13 @ 11:41 am:

    bk
    So into what state bastion of liberty and poverty are you relocating the family fortune? Just so we know where to forward the mail…


  15. - thechampaignlife - Thursday, Sep 26, 13 @ 11:43 am:

    They need to make these pay-to-stay tax credits recoverable. If the company ever leaves the state in the future, they should have to refund the credit with interest. That’d make a lot of companies more carefully consider using them and, for those that take them, be a disincentive for them to leave. Another state would have to offer them enough money to pay for their move and to pay off their IL credit for the company to find it worth moving.


  16. - Old and In The Way - Thursday, Sep 26, 13 @ 11:53 am:

    Rufus
    Corporate welfare far exceeded people welfare a long time ago. Between the states and the federal government it’s not even close. That is just the obvious welfare and doesn’t even consider the defense budget, talk about corporate welfare! Wanna buy a $600 hammer?


  17. - Demoralized - Thursday, Sep 26, 13 @ 3:16 pm:

    @bk:

    Your normal trolling website down today?


  18. - bk - Thursday, Sep 26, 13 @ 4:28 pm:

    Calling me a troll. Way to go you must be a liberal because they usually either call you a racist or use some form of personal attack in place of a logical point. I hope your not the last one out of this Detroit buisness model of a State. But, it sounds like you will be. And yes my family fortune will not be transfered to the teachers unions and public pensions as will whatever you have left after paying your FAIR share to the corupt machine you are so comfortable with. I really do pity you all. I will be paying ZERO State taxes and propery taxes that are not criminaly high. As a matter of fact warmer weather will be a plus.


Sorry, comments for this post are now closed.


* Is the governor's race hurting congressional Republicans here?
* Rauner gets his facts wrong on Minnesota
* Panel: Parties must recruit more women, hire "Director of Diversity," expand on the "Rooney Rule"
* Dating and alcohol rules proposed for campaigns
* Panel recommends not using non-disclosure agreements and mandatory arbitration
* Training, reporting and investigations
* "Campaigns have unique characteristics that can be obstacles to changing culture"
* Panel releases model anti-harassment policy for campaigns
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* *** LIVE COVERAGE ***
* Harold and Raoul battle it out at the Tribune
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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

...............
<


Loading


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

Archives
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
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

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress




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