Illinois’ EDGE program provides annual corporate tax credits to qualifying businesses which support job creation, capital investment and improve the standard of living for all Illinois residents.
Initial qualification criteria require certain job creation and project investment requirements:
100 or Fewer World-Wide Employees; Job Creation: The lesser of 5% of world-wide employment, or 50 new full-time jobs; Investment: $0 (Applicants cannot receive more in credits than the project investment)
More than 100 World-Wide Employees; Job Creation: The lesser of 10% of world-wide employment, or 50 new full-time jobs; Investment: $2,500,000
The non-refundable income tax credit is equal to 50% of the income tax withholdings of new job created in the state. This percentage increases to 75% if the business expansion project is located in an “underserved area” census tract which meets one of the following four tests: (1) Poverty rate of at least 20%; (2) 75% or more of the children in the area are eligible to participate in the federal free lunch or reduced-price meals program for a period of at least two consecutive calendar years preceding the date of the application; (3) At least 20% of the households in the area receive assistance under the Supplemental Nutrition Assistance Program (SNAP) for a period of at least two consecutive calendar years preceding the date of the application; or (4) Average unemployment rate that is more than 120% of the national unemployment average, for a period of at least two consecutive calendar years preceding the date of the application.
Additional credits are also available as reimbursement for qualifying training costs. 10% of eligible training costs of newly hired full-time employees’ positions at the project may also be included as part of annual credits. Qualifying credits are identified as costs incurred to upgrade the technological skills of full-time employees in Illinois and include: curriculum development, training materials (including scrap product costs); trainee domestic travel expenses; instructor costs (including wages, fringe benefits, tuition and domestic travel expenses); and rent, purchase or lease of training equipment; and other usual and customary training costs.
Note: Training costs do not include costs associated with travel outside the United States (unless the Taxpayer receives prior written approval for the travel by the Director based on a showing of substantial need or other proof the training is not reasonably available within the United States), wages and fringe benefits of employees during periods of training, or administrative cost related to Full-Time Employees of the Taxpayer.
Tax credits amounts are calculated on a case-by-case basis. EDGE credits are processed on an annual basis, for up to 10 years, based upon employment ramp-up plans outlined by the business and agreed to by the Department.
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