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Madigan: Reinstate EDGE credit that was already temporarily reinistated

Tuesday, Jan 31, 2017

* Press release…

Speaker Michael J. Madigan, D-Chicago, is directing the House Revenue committee to take up a Democratic Caucus proposal to reinstate a key tax credit for employers who create jobs in Illinois.

In a letter to state Rep. Michael Zalewski, chairman of the House Revenue and Finance Committee, Madigan requested the panel begin work to reinstate the Economic Development for a Growing Economy (EDGE) Tax Credit, a key component of the Democratic Caucus’ economic growth agenda.

“House Democrats know that Illinois must take serious steps to improve the business climate and create job opportunities, and we continue working on a reform agenda that promotes job growth without disadvantaging the people who work in those jobs every day,” Madigan said. “Businesses deserve the certainty of knowing that the state will stand with them as they work to create new jobs here in Illinois. By investing in businesses that invest in Illinois, the EDGE Tax Credit is essential to improving our business climate.”

The EDGE Tax Credit provides an incentive for employers who create a significant number of jobs in Illinois. The renewal of the tax credit was recently cited by the Illinois Chamber of Commerce as a key reform Illinois could undertake to help revitalize the economy.

“The House Democratic Caucus believes that it is possible to provide good jobs for working families while also passing policies that help businesses grow,” Madigan said. “These ideas are not mutually exclusive; in fact they’re both critical to the future of our state.”

The governor and the GA let the program expire at the end of last year and then reinstated it for a few months earlier this month. If this was the plan all along, they could’ve just made it permanent earlier.

Seems like make-work to me, but whatevs.

- Posted by Rich Miller        

35 Comments
  1. - blue dog dem - Tuesday, Jan 31, 17 @ 3:54 pm:

    Democrats and corporate welfare. Oh! I mean Republicans and corporate welfare. I am so confused!!


  2. - Anon - Tuesday, Jan 31, 17 @ 3:56 pm:

    So if lower taxes creates jobs, then higher taxes will ______?


  3. - Honeybear - Tuesday, Jan 31, 17 @ 3:58 pm:

    I HATE EDGE!!!!!

    It siphons off funds before it ever gets to our coffers.

    This reduced revenue is then used to justify cuts to programs and personnel.

    There is no accountability!

    THERE IS NO ACCOUNTABILITY!!!!!!!!

    NO ONE HAS EVER DONE AN AUDIT TO SEE IF WE ARE GETTING THE JOBS OR INVESTMENT THE COMPANY SAID THEY WOULD BRING!

    NO AUDIT

    NO ACCOUNTABILITY WHATSOEVER!

    215,000,000 IN 2015!

    EST. HALF BILLION THIS YEAR (We won’t know till July if that’s true)

    AND WE WANT TO TRUST THE DEMOCRATIC PATRONAGE BACK SCRATCHER REBRANDED FOR RAUNER USE?

    Wah?

    HAVE DCEO REACTIVATE AND FUND THE SMALL BUSINESS CENTERS!

    THEY ARE ALL CLOSED! THEY WERE AT PUBLIC UNIVERSITIES!

    INVEST IN MAINSTREET NOT WALLSTREET!


  4. - Ahoy! - Tuesday, Jan 31, 17 @ 4:08 pm:

    We would be much better off in just creating a positive business environment instead of relying on sweet-heart deals like EDGE. Real Workers Comp Reform and stable finances would do 100 times more for Illinois than EDGE.


  5. - Last Bull Moose - Tuesday, Jan 31, 17 @ 4:09 pm:

    Targeted subsidies increase government power. Not surprised that Madigan would support it.


  6. - Mama - Tuesday, Jan 31, 17 @ 4:10 pm:

    Only give companies a tax credit AFTER the jobs have been created, and IL citizens are already working for such company. This way taxpayers won’t get screwed by companies taking the money, and then move their company out of state.


  7. - Toothy - Tuesday, Jan 31, 17 @ 4:16 pm:

    How about some programs the help small and midsize businesses? EDGE breaks usually go to corporate behemoths.


  8. - wordslinger - Tuesday, Jan 31, 17 @ 4:20 pm:

    Any chance we can ever get a performance audit on EDGE credits? Who, how much, what was promised, what was delivered?

    Isn’t that that the minimum of accountability when you’re literally taxing workers and giving the money to their bosses?

    The annual reports from DCEO don’t cut it. Lots of promises, no follow-up, no documentation.

    https://www.illinois.gov/dceo/AboutDCEO/ReportsRequiredByStatute/Final%20Draft%20of%202015%20EDGE%20Annual%20Report.pdf


  9. - Honeybear - Tuesday, Jan 31, 17 @ 4:31 pm:

    Exactly Ahoy! STABLE BUSINESS ENVIRONMENT! What a concept right? As to Workers Comp. Why didn’t the insurance companies pass on the saving from the last reforms? I don’t know….was it maybe for more profit? Why should the public be concerned over private profits? Let’s debate the “race to the bottom” economic development!


  10. - Henry Francis - Tuesday, Jan 31, 17 @ 4:31 pm:

    LBL - EDGE gives power to executive branch, not legislative. DCEO (or Intersect, heh) pick the winners, not MJM.


  11. - Honeybear - Tuesday, Jan 31, 17 @ 4:42 pm:

    Henry Francis, with Jim Schultz gone from Intersect Illinois it’s just about dead. That leaves just 2 people (plus a secretary)

    It was never going to get it’s 501c3 status. Thus it could never become a Public Private Partnership. The previous administration DCEO folks told the incoming people that you couldn’t do it by executive order. They were right. So thank God we won’t have Int IL making non Foia deals and totally unaccountable. Not that the program is even accountable now. Egads just think if Int IL had gotten non-profit status! The corruption could have been tremendous. Illinois dodged a bullet that caught a lot of other states right between the running lights. Many states had to shut down their P3′S. Phewww!


  12. - blue dog dem - Tuesday, Jan 31, 17 @ 4:45 pm:

    Honey I’m home. Edge stinks. Totally un-American. Defies capitalism. Govt picking winners.

    Yes, insurance companies greedy, but Illinois causation standards deplorable( I got my feeling hurt yesterday when Word called me that).


  13. - WhoKnew - Tuesday, Jan 31, 17 @ 4:49 pm:

    “Never mistake activity for achievement.”
    John Wooden


  14. - Touré's Latte - Tuesday, Jan 31, 17 @ 5:00 pm:

    Seems to make things more complicated from a business POV. Here is a higher rate and here is behavior we will reward with credits against a higher rate?

    How does that help the mature company firing on all cylinders (big or small) already?


  15. - Chicagonk - Tuesday, Jan 31, 17 @ 5:12 pm:

    EDGE credits need reform not reinstatement. For one, the credits should be for jobs added and not simply jobs retained. And second, the credits should be higher for employers in high poverty areas.


  16. - Yellow Dog Democrat - Tuesday, Jan 31, 17 @ 5:40 pm:

    Kudos to Madigan and Democrats.

    Capfax posters have been urging Democrats to present an affirmative agenda to create jobs, Democrats have responded
    By taking a key plank from the Chamber of Commerce agenda and putting it into action.

    Happily, it is legislation that Republicans also support.

    More. Like. This. Please.


  17. - Last Bull Moose - Tuesday, Jan 31, 17 @ 6:06 pm:

    Henry Francis. Fair point. But I don’t think these decisions are made in a vacuum.

    The Governor also hires employees, but when I worked for the State, there were many employees with ties to legislators.


  18. - Anonymous - Tuesday, Jan 31, 17 @ 6:09 pm:

    @Honeybear….

    The “insurance company” line is a great red herring to deflect - hope you’re working on commission for the trial bar!!. Since you opened the can of worms, answer these questions:

    Why self-insured companies that don’t buy insurance from evil insurance companies didn’t see the recommended savings.

    Since there are 300+ insurance companies writing WC policies, please show us the collusion. The largest company has less than 5 percent of the market so there has to be a grand scheme.


  19. - blue dog dem - Tuesday, Jan 31, 17 @ 6:29 pm:

    Do these politicians know more than us simpletons?? Literally every person I have dialogue with is opposed to corporate give-aways.


  20. - wordslinger - Tuesday, Jan 31, 17 @ 7:02 pm:

    – but Illinois causation standards deplorable( I got my feeling hurt yesterday when Word called me that).–

    Show me where I wrote that you or anyone else is “deplorable.” Should be easy to do, if it was yesterday.

    Otherwise, you’re just making things up for some reason.


  21. - Yellow Dog Democrat - Tuesday, Jan 31, 17 @ 7:42 pm:

    Blue Dog:

    These tax credits are tied to actual job numbers. They have clawback provisions. Lots of strings attached, definitely not a “giveaway”.


  22. - wordslinger - Tuesday, Jan 31, 17 @ 7:47 pm:

    –These tax credits are tied to actual job numbers. They have clawback provisions. Lots of strings attached, definitely not a “giveaway”.–

    Where can we find the performance audit confirming those actual job numbers, as well as all those strings attached and clawback provision?

    Any examples of money being clawed back for failure to perform? How would a taxpayer find that out?

    And I think by any definition, EDGE definitely takes state taxes withheld from employees and gives it to their employers.


  23. - Whatever - Tuesday, Jan 31, 17 @ 7:48 pm:

    == Lots of strings attached, definitely not a “giveaway”.==

    It’s still a giveaway, just not as blatant as some other giveways. Most businesses don’t get these gifts and they still hire new employees.


  24. - Fudo Myoo - Tuesday, Jan 31, 17 @ 8:40 pm:

    Word, you are exactly correct. Yellow Dog is only technically correct. If there is no audit we won’t ever know. If there is no enforcement we’ll never get the money back. Either way it’s always been a nod and a wink.


  25. - blue dog dem - Tuesday, Jan 31, 17 @ 8:49 pm:

    Its a give away because not all companies get them. Let’s call it crony capitalism then. I don’t care, its not the American way. Realtors, real estate investors, maybe a few beneficiaries, the only people I know in favor. But these type are just hoping to be in on a piece of the pork pie.


  26. - Henry Francis - Tuesday, Jan 31, 17 @ 9:03 pm:

    HoneyBear - Intersect never got off the ground. Schultz saw that, and once word got out how much he was making and the accountability that would follow (i.e., any return on that investment?), he jumped off the sinking ship.

    Rauner’s DCEO Crew (wannabe Intersect) just don’t have a clue how to run a department. And once they got their Intersect, they couldn’t do jack with it.

    And this is from our “businessman’ governor.


  27. - swIFT taylor - Tuesday, Jan 31, 17 @ 10:12 pm:

    it’s because Dinosaur Mike moves at the pace of a prehistoric glacier. #DinoMike


  28. - Arock - Tuesday, Jan 31, 17 @ 10:25 pm:

    Madigan comes out in a flurry, businesses will be lining up to come to Illinois with his new pro-business agenda. Oh sorry we’ve done this in the past and still are near last in the recovery. Maybe Mike ought to try and chart a new course and really reform things so we can get Illinois back on track.


  29. - Lasalledemocrat - Wednesday, Feb 1, 17 @ 5:29 am:

    Edge credits didn’t keep the Mitsubishi plant from closing.


  30. - Tom K. - Wednesday, Feb 1, 17 @ 7:02 am:

    Does EDGE make payouts for new employees hired with H-1B visas? Nothing against these folks, most are talented Engineers - but either companies are abusing this program, or the U.S. has done a really lousy job of preparing our own young people for jobs in the tech industry.
    One problem I can imagine with EDGE, is that someone creating, say, a Janitorial business and is rewarded with EDGE, is instantly afforded an advantage over their established competition. Likely, the same company that will be chosen to replace AFSCME workers under the new outsourcing rules. So now we’re bidding against oursleves. Like Bluedog said, Gov. picking winners and losers.


  31. - The Real Just Me - Wednesday, Feb 1, 17 @ 7:39 am:

    Hey, Ahoy? Please give 3 specific things that constitute “real” workers comp reform. Then, please give by how much each of these 3 things will reduce workers compensation insurance premiums for IL employers. Thanks.


  32. - The Real Just Me - Wednesday, Feb 1, 17 @ 7:53 am:

    Regarding workers compensation insurance rates, you don’t have to call it “collusion’ to know that federal “anti-collusion” laws specifically exclude insurance companies. Whatever you call it, insurance companies are not only allowed to, but are encouraged to act in concert. In IL, ONE rating organization, NCCI, sets the SAME rates for nearly ALL of the WC insurance companies. And NCCI has set the rates about 30 lower since lower 2011, about 13% lower in 2017 alone. That means that all other things being equal (payroll, experience, etc.) the average IL employer should have seen a 30% reduction in its WC insurance premium since 2011. But has that happened? Reports from average IL employers seem to indicate that not only have premiums not gone down, they have actually gone up. If they have gone down, it has been no where near 30%. If I were a decision maker, I would want to know why a 30% reduction in rates has not resulted in a 30% reduction in premiums (again all other things being equal)before I slashed compensation to injured workers and doctors and hospitals again.


  33. - Downstate mayor - Wednesday, Feb 1, 17 @ 8:22 am:

    I live in a border county and our nearest state has similar but better programs and continually takes our businesses because they offer more than the EDGE credit. If the EDGE credit is bad, then how are we supposed to compete with border states? Even EDGE has its problems, the worker has to live in Illinois to receive it. Makes it harder for the border counties. I understand climate is key but DCEO requires new or expanding companies to get competing offers from other states before they get help and the offers were always better. So, DCEO was “encouraging” businesses to go to other states. So how do we get businesses to come here if EDGE is bad, DCEO doesn’t work, and our climate is worse? Did we all see the report that Illinois lost 37,000 people last year?


  34. - Anonymous - Wednesday, Feb 1, 17 @ 8:29 am:

    x


  35. - Delimma - Wednesday, Feb 1, 17 @ 9:21 am:

    Hey downstate mayor, isn’t that kind of your job? I mean, what are your ideas for improving the lives of your constituents? How will cutting taxes and reducing your budget make doing your job easier?


Sorry, comments for this post are now closed.


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