Economic Development for a Growing Economy Tax Credit Program (EDGE)
As a tax credit, the EDGE program allows a firm to reduce the costs of doing business in Illinois when compared with similar costs in other states where it could have located its operation.
The credits would be available to a company for up to a total of 10 years for each project.
The amount of the Tax Credit is calculated on a case-by-case basis. The tax credits could be as high as the amount of tax receipts collected from the Illinois income taxes paid by newly hired and/or retained employees of the firm as pertaining to the project.
While each annual tax credit amount cannot be larger than the company’s state income tax liability (the income tax credits would not be refundable), the credit can be carried forward for up to five years.
Each company receiving competitive credits would have to maintain the jobs created and/or retained along with the capital investment concurrent with the period in which it claims the credits.
To qualify a company must provide documentation that attests to the fact of competition among a competing state, and agree to make an investment of at least $5 million in capital improvements and create a minimum of 25 new full time jobs in Illinois. For a company with 100 or fewer employees, the company must agree to make a capital investment of $1million and create at least 5 new full time jobs in Illinois. Additionally:
- The development project must add to the export potential of Illinois
- The project must be an expansion of an existing operation or a new location
- Company relocations within Illinois are eligible for consideration only if there is a documented and substantiated business reason why their current location is inadequate.
- Each project must commit to make a capital investment in the state of at least $5 million and must create a minimum of 25 new jobs (excluding recalls, transfers, etc.); or companies with less than 100 employees must make a capital investment of at least $1 million and must create a minimum of 5 new jobs, or the project must meet the investment and job creation, and/or retention requirements as set forth by DCEO.
- The Applicant must demonstrate that if not for the Credit, the Project would not occur in Illinois by providing documentation evidencing that:
- the Applicant has multi-state location options and could reasonably and efficiently locate outside of the state; or at least one other state is being considered for the project; or
- receipt of the Credit is a major factor in the Applicant’s decision and that, without the Credit, the Applicant likely would not create and/or retain jobs in Illinois; or
- the Credit is essential to the Applicant’s decision to create and/or retain jobs in the state.
- The cost differential should be identified, using the best available data, in the projected costs for the Applicant’s project compared to the projected costs in the competing state, including the impact of the competing state’s incentive programs. The cost differential should, for example, demonstrate the following:
- specific costs of labor, utilities, taxes and other costs of an out-of-state site or the industry’s cost structure in the competing region; or
- specific cost differential due to the impact of a competing state’s incentive programs.
Historic Tax Credits
A 20% tax credit is available for the substantial rehabilitation of commercial, agricultural, industrial, or rental residential buildings that are certified as historic.
Local Property Tax Abatements
Municipalities throughout Winnebago county have the ability to consider local property tax abatement on a project-by-project basis. Abatements are generally based on the creation and/or retention of jobs
Other Tax Incentives
Tax abatements and credits are also associated with the following incentive zones: