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* More hopeful news via press release…
After reaching economically-responsible compromises on Unemployment Insurance Reform, the Child Care Assistance Program and DON Score legislation, the Rauner Administration announced today that it is taking some steps forward on EDGE Tax Credits as well as re-instituting the Film Tax Credit approvals. Both credits were suspended for new projects at the beginning of the fiscal year.
Since taking office, the Administration has been implementing policies to ensure a more fiscally-responsible approach to EDGE agreements in order to balance investment in Illinois with taxpayer benefits. Policy changes include:
1. No longer supporting “Special EDGE” agreements (see below for more information) that only benefit certain companies that can afford lobbyists;
2. No longer providing tax credits for job retention, only for capital investment and net new job creation;
3. Requiring that tax credits can only be obtained for jobs created above a baseline of all existing employees located within the state, rather than just the baseline of employees located at the specific project location;
a. In the past, a company that signed an EDGE agreement for an expansion project in a certain location only needed to maintain a requisite number of employees at that specific facility in order to meet its requirements. Laying off employees at a different facility in the state, or even closing it, would not have impacted its ability to continue receiving taxpayer funded benefits for the facility for which it was receiving the EDGE agreement;
4. Prohibiting more than one tax credit on the same facility. Previous administrations would allow multiple EDGE deals on jobs created at the same facility;
5. Focusing on marketing the assets of the State, rather than leading with our incentives.
With these policy changes now firmly established at Department of Commerce, signs of progress with the legislature and a number of job-creating projects in the pipeline, the Administration will now allow Department of Commerce to make an EDGE offer to companies, confirm eligibility and enable companies to demonstrate that they’ve met all the requirements necessary to receive credits. Actual EDGE and film tax credits for new projects will still not be certified or able to be claimed until an FY16 budget is enacted. These changes will allow the Administration to better recruit new investment to Illinois without impacting the budget.
…Adding… From comments…
Film tax credits. Dunkin’s pet project. Figures.
You gotta do what you gotta do.
posted by Rich Miller
Wednesday, Nov 11, 15 @ 8:35 am
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This will sound strange coming from me, but I kind of like the Governor’s EDGE Credit changes.
Comment by SAP Wednesday, Nov 11, 15 @ 8:52 am
Finally in the field fighting for ground, rather than sitting back and firing cannons.
Let’s give some credit to the goo-goos’ meeting deadline.
Comment by walker Wednesday, Nov 11, 15 @ 8:52 am
Me too. Seems like common sense changes.
Comment by Concerned Wednesday, Nov 11, 15 @ 8:59 am
The news in Crains today is that the tentative agreement between Ford and the UAW includes $1.1 billion in new investment at fhe Torrence Avenue and Chicago Heights plants.
I’m sure the governor is busy drawing up the proclamation now thanking the UAW for using its collective bargaining powers to leverage new investment, and to Ford, for recognizing what a wonderful state Illinois is for manufacturing.
Comment by Wordslinger Wednesday, Nov 11, 15 @ 9:02 am
Reasonable and doable. Right now, Rauner and Cullerton are the only ones moving the ball forward.
Comment by Anonymous Wednesday, Nov 11, 15 @ 9:08 am
Those changes to EDGE aren’t really different from how it was utilized under Quinn. They were moving away from retention projects starting in 2013. There will always be exceptions though - just wait and see. In fact, I wonder how the ConAgra deal complies with the state-wide baseline since they have made it clear they are laying off employees in Naperville.
Comment by Henry Francis Wednesday, Nov 11, 15 @ 9:16 am
This was a hostage?
Comment by ILPundit Wednesday, Nov 11, 15 @ 9:19 am
Anyone askin’ the SuperStars why they shut down the nearly completed UI talks last May? Then scrambled to start up when there were hints others were movin’
And the U turn on biz breaks very predictable. !%ers lookin’ for handouts don’t want to wait.
Comment by Anonin' Wednesday, Nov 11, 15 @ 9:24 am
The legal name of the state agency is the Department of Commerce and Economic Opportunity, commonly abbreviated as DCEO. But the Rauner people have shortened it to the Department of Commerce, as noted in the press release. DCEO staff have been told not to refer to their agency as DCEO and instead only use Commerce.
So the question is, what’s the problem with Economic Opportunity?
Comment by DuPage Dave Wednesday, Nov 11, 15 @ 9:49 am
@DuPage Dave, I would suggest that the name change away from DCCA made both the acronym and the name a mouthful. It’s just easier to shorten it.
Comment by ILPundit Wednesday, Nov 11, 15 @ 10:02 am
again these are all great…. if Rauner woumd just move awa from his blood vengence against unions we could work on more actual reforms like this and the unemployment stuff, which were all great ideas
Comment by Ghost Wednesday, Nov 11, 15 @ 10:16 am
Hostage wasn’t released, just a picture showing proof of life. The hostage won’t be released until there is a budget.
Comment by Huh? Wednesday, Nov 11, 15 @ 10:30 am
Film tax credits. Dunkin’s pet project. Figures.
Comment by low level Wednesday, Nov 11, 15 @ 10:56 am
This is good news and good changes. If they’re exactly what we had before, that’s fine, too. The point of the program is to create jobs not give gifts to corps and it sounds like that’s what they’re now going to try to do. And I really like how the agency now has to show off the state’s positives, not just show a bag of money. Hopefully the Gov will follow suit in his travels around the state.
Comment by Not quite a majority Wednesday, Nov 11, 15 @ 11:10 am
Just confirmation,not that I needed any, that the RAUN Man is not really the capitalist he claims to be. EDGE, tax abatements, and TIFs are a clear sign that govt picks winners and losers. Any time govt has that power, partisan politics,party favors and vote buying will prevail. Great to know we have a new regime but the same old politics as usual.
Comment by Blue dog dem Wednesday, Nov 11, 15 @ 12:53 pm
Follow up. My wife and I own and operate a small widget company in the Land O Lincoln. We employ anywhere from 17 to 23 people. All employees make anywhere from $43k to $67 k with decent bennies.our property tax bill is $57k for our small manufacturing facility and warehouse. This is fine because of the needs of our community and school district. Have been doing this for decades. Come to find out, our wonderful DCEO reaches out to a competing widget manufacture from Indiana, and wa-la, instant competition state sponsored just like China. Real job creation.
Comment by Blue dog dem Wednesday, Nov 11, 15 @ 1:06 pm
Word@9:02. Couldn’t have said it better myself.
Comment by Blue dog dem Wednesday, Nov 11, 15 @ 1:18 pm
What about the federal money for the universities and community colleges Rauner is holding up? Let’s go, Rauner! Release all the pass-through federal funds you are withholding! You were entrusted by the federal government to see these funds went where they were supposed to. That is part of the job of the Governor.
Comment by DuPage Wednesday, Nov 11, 15 @ 3:07 pm