Local senator shares concerns over missing Illinois tax incentiv - WREX.com – Rockford’s News Leader

Local senator shares concerns over missing Illinois tax incentive

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From Woodward to the Chrysler Plant, Senator Dave Syverson says the Edge Tax Credits played a role in landing the area's biggest employers. 

"It's normally used in like manufacturing and it's a way to help make Illinois a little more competitive with our neighboring states," says Syverson. 

Edge Tax Credits are tax incentives used to encourage companies to locate or expand in Illinois.  When a company is considering setting up shop in a competing state, the credit offers big savings to get it to stay in Illinois. 

"The more employees, the higher the wages,  the more the credit they get," says Syverson. 

But these credits expired in April, and lawmakers failed to extend them. 

"It's frustrating because Illinois is struggling as we know, losing more jobs than any other state," says Syverson.  "Pretty much they've left the Governor with no tools to attract or keep high paying jobs in Illinois."

13 News spoke with House Speaker Michael Madigan's press secretary, Steve Brown.  He says lawmakers want to overhaul the rules.  Saying companies got the credit to stay in Illinois if they threatened to leave.  Brown says that made it hard to judge if companies were taking advantage of the system.  

But Syverson says now without any Edge Tax Credit in place, the state risks losing more businesses. 

"They can chose where they want to do that expansion and why be in Illinois if the cost of manufacturing is higher in Illinois than in other states? Then they're going to go to those other states where they can manufacture something for cheaper."

A measure to re-instate Edge Tax Credits passed the house.  Senator Syverson says the senate could have the chance to take a vote on this in the next few weeks. 13 News will continue to monitor these developments.  

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