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Reforming the EDGE

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Illinois

* The Tribune has an interesting story about efforts to reform the state’s EDGE tax credit for businesses…

A case in point is Motorola Mobility, which laid off more than 1,000 workers in 2012 and fell below its requirement to retain at least 2,500 jobs but was still eligible for a tax credit worth about $11 million, according the state’s corporate accountability website and data the newspaper obtained for 2012, the latest year available, under the state’s Freedom of Information Act.

William Moss, a spokesman for Motorola Mobility, said the EDGE credit is assessed and disbursed quarterly, allowing the company to draw a credit for the quarters it meets its job retention commitments; the company is the only one allowed to draw credits quarterly, according to a spokesman with the Department of Commerce and Economic Opportunity, which administers the program. And it doesn’t have to create a single job, according to its contract with the state.

“In August of 2012, we underwent a staff reduction that took us below 2,500 employees in the state, and, as a result, in (the third and fourth quarters), we did not request nor did we receive EDGE credits,” Moss wrote in an email.

Go read the whole thing.

posted by Rich Miller
Monday, Jan 13, 14 @ 11:07 am

Comments

–Incentives are “probably needed more politically than economically,” Giertz said.–

That’s it. Very expensive press releases for governors.

Comment by wordslinger Monday, Jan 13, 14 @ 11:32 am
An illuminating look at a complete disaster of a program. Maybe if these companies want these breaks they should have do something other than provide smoke and mirrors as evidence for their assertions. My suggestion is that they be forced to open their books to the public and connect specific dollars of tax breaks to specific employees.

Comment by Precinct Captain Monday, Jan 13, 14 @ 4:17 pm
Abbott Labs is another responsible citizen that got EDGE tax credits to the tune of $409,371. The company headed by CEO Miles White also was sentenced for Abbott Laboratories Sentenced for misbranding Depakote. Judge imposed $500 Million Fine and $198.5 Million Forfeiture for Illegal Marketing. Miles White of the Commercial Club of Chicago was a leader of the move to destroy public workers pensions.

Comment by jimbo26 Monday, Jan 13, 14 @ 6:06 pm