- Published: Tuesday, October 06, 2015 08:49 AM
“The General Assembly should immediately suspend the corporate tax break program until a balanced budget is passed. In addition to legitimate questions regarding the overall effectiveness of the program, it’s hard to justify giving corporations a break on their taxes while the state is shuttering facilities, threating to lay off workers and canceling services to the most needy,” Manar said.
The legislation would suspend the Economic Development for a Growing Economy Tax Credit Program until a compromise is reached and a budget is passed.
“Governor Rauner has consistently called for shared sacrifice since his inauguration speech in January. Right now under this budget stalemate the poorest and neediest in Illinois are sacrificing the most while corporations continue to benefit from tax breaks,” Manar said.
EDGE incentives are awarded to corporation to encourage them to relocate to Illinois or stay in Illinois. The state has issued over $1 billion in credits since 2001 that reduce and sometimes eliminate a company’s income tax bill.
The Illinois Department of Commerce and Economic Opportunity administers the EDGE program. Recent reports have detailed failures within the program since its inception.
Just last week, a report by the Chicago Tribune found that the majority of companies awarded EDGE incentives failed hire or keep the number of employees they agreed to as a condition of the incentive.
The legislation was filed Monday and will be recorded by the Senate when it next convenes.