ILLINOIS INCENTIVES SUMMARY
Economic Development for a Growing Economy (EDGE)
EDGE provides an incentive to companies to locate or expand operations in Illinois when there is a competing location in another state. The program provides tax credits equal to 50 percent of state income taxes withheld from the salaries of newly created jobs. Companies must create a minimum of 50 new full-time jobs and make a minimum capital investment of $2.5 million. For companies with 100 or fewer employees, the employment and investment requirements are a minimum of 50 new full-time jobs, and tax credits cannot exceed the project investment.
High Impact Business Program (HIB)
The HIB is available to large-scale projects that are creating 500 or more full-time jobs as well as making a capital investment of at least $12 million, or for at least a $30 million capital investment and a retention of 1,500 existing full-time Illinois jobs. Projects located in an Enterprise Zone are not eligible.
The HIB includes the following incentives:
- Investment tax credits
- State sales tax exemption on building materials and utilities
- State sales tax exemption on purchases of personal property used in the manufacturing process, pollution control facilities, and wind energy facilities.
Illinois Enterprise Zone Program
Companies locating or expanding in an Illinois Enterprise Zone may be eligible for various state and local tax incentives including the following:
- Exemption on retailer occupation tax paid on building materials
- State investment tax credit of 0.5% of qualified property
- Expanded state sales tax exemption on purchases of personal property used in the manufacturing process or in pollution control facilities
- Exemption on state utility tax for electricity and natural gas
- Exemption on ICC administrative charge and telecommunication excise tax
- Other local enterprise zone incentives
Employer Training Investment Program (ETIP)
The ETIP provides resources to upgrade skills of the Illinois workforce to remain competitive in new technologies and business practices. ETIP grants may reimburse Illinois companies for up to 50% of the cost of training their employees. Training grants are available to Illinois companies that are expanding or relocating operations, or whose operations are in jeopardy of closing. ETIP provides a dollar for dollar match of a company investment in its workforce.
Notice: This list of economic development incentive programs is intended to provide a high-level overview of commonly pursued state discretionary programs. A comprehensive analysis of project details will determine the full scope of state and local incentive programs that may be available to support a specific project.