DALLAS, Oct. 3, 2017 /PRNewswire/ -- On September 18, 2017, the state of Illinois enacted into law H.B. 162, reinstating the expired Economic Development for a Growing Economy (EDGE) Tax Credit Program until June 30, 2022. The purpose of the EDGE Tax Credit Program is to provide tax incentives that inspire companies to either build a new location or expand existing operations in Illinois. To partake in this program, taxpayers must apply for designation and enter into a written agreement with the Illinois Department of Commerce and Economic Opportunity (DCEO).
The reinstated EDGE Tax Credit Program has several important changes, including the items summarized below:
The previous EDGE Tax Credit was offered as a percentage of up to 100% of personal income tax withheld of new employees in connection with a project. Credit awards are now capped at the lesser of 50% of the incremental personal income tax withheld attributable to new employees plus 10% of the training costs for new employees, or 100% of the incremental personal income tax withheld attributable to new employees at an EDGE applicant's project.
For projects in "underserved areas," the 50% option above is increased to 75%. Underserved areas are geographic areas that meet one or more of the following conditions:
poverty rate of at least 20%,
75% or more of the children in the area participate in the federal free lunch program,
at least 20% of households in the area receive assistance under the Supplemental Nutrition Assistance Program (SNAP), and/or
the area has an average unemployment rate that is more than 120% of the national unemployment rate for a period of at least two consecutive calendar years preceding the date of application.
In very unique circumstances, applicants may be eligible for up to 25% of the incremental personal income tax withheld attributed to retained employees for a project.
To be eligible for the EDGE Tax Credit, applicants must have a project that achieves one of the following criteria:
Companies with more than 100 employees must:
Employ a number of new employees in Illinois equal to the lesser of 50 new full-time jobs or 10% of their full-time world-wide employees at the date of application.
Make at least $2.5 million in capital investment in Illinois. This update reduces the amount of required investment of $5 million.
Companies with less than 100 employees must:
Employ a number of new employees in Illinois equal to the lesser of 50 new full-time jobs or 5% of their full-time worldwide employees at the date of application.
There is no minimum capital investment required.
In addition to the updates above, to qualify for the EDGE Tax Credit, applicants must demonstrate that the project would not occur in Illinois but for the EDGE credit.
The reinstatement of the EDGE Tax Credit will be used to enhance economic development opportunities throughout the state of Illinois.
About Ryan Ryan, an award-winning global tax services and software provider, is the largest firm in the world dedicated exclusively to business taxes. With global headquarters in Dallas, Texas, the Firm provides an integrated suite of federal, state, local, and international tax services on a multi-jurisdictional basis, including tax recovery, consulting, advocacy, compliance, and technology services. Ryan is a five-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 2,100 professionals and associates serves over 14,000 clients in more than 45 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at ryan.com.
New research from the global research and advisory firm explains the challenges federal departments and agencies face in serving vulnerable communities. In its recently published blueprint, Info-Tech highlights the potential for AI initiatives to...
Corporate sustainability is about more than simply putting a recycling bin by the copy machine or a water cooler in the breakroom. It is a company's conscious effort to make environmentally responsible choices at every possible opportunity. That is...
Variantyx, a leader in molecular diagnostics, announced today that it has secured an additional $36 million in funding from its portfolio of investors which includes Peregrine Ventures, Pitango HealthTech, New Era Capital Partners and Bosch Ventures....
Semiconductors power the world. From computers to medical equipment, to electric vehicles, semiconductors ? or microchips ? produce so much of what we depend on. They are also critical in the global race to scale up and adopt artificial intelligence,...
INSTANT®, a leading data automation and generative technology company specializing in real-time business intelligence for global enterprises and ?nancial institutions, is delighted to announce the appointment of Rob Melnyk as Executive Vice...
Digital onboarding provider Zenoo is ensuring refugee charity Care4Calais is using the right volunteers by carrying out 200 background checks a month.
The Cambridge-based tech company ? whose clients include London Stock Exchange, Experian,...