(The Center Square) – The Illinois Department of Commerce and Economic Opportunity will reinstate the Blue Collar Jobs Act, which provides an income tax credit to companies that invest in Illinois.
The program was started in 2019 but was put on hold by Gov. J.B. Pritzker in 2021. The act contains four different standards of eligibility.
Tax credits are based on the wages paid to construction workers on eligible projects. For a project to be eligible, a company must be located in an Enterprise Zone or a River Edge Redevelopment Zone. It must be designated as a High Impact Business or have an agreement under the Economic Development for a Growing Economy Program.
Those eligible companies may receive up to 75% income tax withholding credits for their workers.
Pritzker issued a statement after the initiative was reinstated Wednesday and said he believes this could help many Illinoisans.
“From my administration’s Rebuild Illinois Capital Plan to the Climate and Equitable Jobs Act, we’ve put economic opportunity at the forefront in legislation passed and policies implemented,” Pritzker said. “Today, I am proud to announce yet another investment in our communities, the Blue Collar Jobs Act Tax Credit to promote construction projects in underserved areas while creating more good-paying jobs up and down the state.”
State Rep. Ryan Spain, R-Peoria, told The Center Square that this would help the state remain competitive when competing with other states over future investments.
“We need more tools in Illinois to enhance our competitiveness,” Spain said. “We know that there are challenges facing the state of Illinois, and so the Blue Collar Jobs Act is a good way we can help more major projects move forward.”
Spain said he hopes the General Assembly can use this as a starting point for more impactful decisions in the future.
“We [Republicans] would advocate that we need to continue to make changes, wholesale, large-scale changes to improve the economic competitiveness of the state of Illinois,” Spain said. “So I hope this can be a starting point where Democrats are listening to Republicans and understanding what we need to do to make sure that we are growing our economy.”
The legislation makes $20 million in tax credits available annually for eligible companies.