Illinois House passes bill establishing, extending various business tax credits

SPRINGFIELD (WGEM) – The Illinois state House of Representatives passed a bill Wednesday creating and extending tax incentives lawmakers hope will attract businesses and create jobs.

The bill would extend the state’s research and development tax credit until Jan. 1, 2032. It was set to expire Jan. 1, 2027.

It would also create a tax credit for quantum computing campuses with the goal of attracting more quantum jobs to the state.

It also extends the Economic Development for a Growing Economy (EDGE) tax credit from 10 to 15 years. It incentivizes large projects with more than $50 million and 100 employees.

“This bill puts us in the best possible position to bring Illinois into a leadership role to attract new economy jobs and new investment,” said state Rep. Dave Vella, D-Rockford, the bill’s sponsor.

Though the bill passed with broad bipartisan support with a 98-14 vote, several House Republicans did oppose the bill. State Rep. C.D. Davidsmeyer, R-Jacksonville, said he thinks the incentives are unfair to most taxpayers.

“The reality is all of these things only go to big business, large corporations, and the small businesses and the individuals in the State of Illinois are left to foot the bill,” he said.

The bill also adds green steel manufacturers and hybrid and fully electric aircraft manufacturers to the Reimagining Energy and Vehicles (REV) tax credit program.

It also extends the film industry tax credit.

The bill now heads to the state Senate.

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