SPRINGFIELD, Ill. 鈥� House Republicans are pushing for Gov. JB Pritzker to unfreeze the business tax incentives that could create more jobs for the middle class in Illinois. The became law in 2019. However, Pritzker froze implementation of the measure in January to save money for the state鈥檚 budget. His annual budget speech is scheduled for Wednesday.
Shortly after the proposal passed with bipartisan support, Pritzker was happy to help create incentives for businesses to come to Illinois. Yet, the Democrat explained the tax credits will have to wait until the state returns to 鈥渇irmer fiscal footing.鈥�
Caucus members say the best stimulus check the state could provide is a steady, good-paying job. The Blue Collar Jobs Act created four new tax credits to help attract businesses to Illinois or expand existing facilities.
Still, the administration announced last month that Illinois couldn鈥檛 afford to expand tax credits to those already receiving them. Rep. Keith Wheeler (R-Oswego) introduced the proposal two years ago and disagrees with Pritzker鈥檚 argument.
鈥淭hese credits create jobs and have no negative impact on the state budget, and realistically a very positive impact on our state budget,鈥� Wheeler said Friday.
Wheeler says the law still has strong support from labor and business groups. He argues it shows Illinois is open for business and gives construction workers more job opportunities. Wheeler also stressed the Blue Collar Jobs Act isn鈥檛 a corporate tax loophole, since the tax credits only become available once work is fully completed.
鈥淔irst steps in the budget process鈥�
Nonetheless, the administration said delaying the plan could save the state an additional $20 million.
鈥淭he recently announced budget cuts along with these new rollbacks of corporate tax breaks are just the first steps in this budget process. More will be necessary,鈥� Pritzker stated on January 12. 鈥淲e will need to scrutinize and potentially roll back other corporate tax breaks 鈥� including those that have been on the books for many years.鈥�
Major companies previously expressed interest in moving to Illinois, taking advantage of the new law. Rep. Jeff Keicher (R-Dekalb) is excited to see Facebook鈥檚 interest in building an $800 million data center in his district.
鈥淚t allows local areas like my own to rescue their own future by bringing in added revenues, added jobs, added residents. We cannot afford to see the state take that away,鈥� Keicher said.
The northern Illinois native says he鈥檚 worried Pritzker will continue taking the local distributive share of taxes through his budget. Keicher feels that could force local governments to raise taxes while taking away the tax credit tools.
鈥淭he state let them down,鈥� added Keicher.
Wheeler stressed all parties involved came to a firm agreement in 2019. That鈥檚 why he was shocked to see the governor鈥檚 announcement in a press release.
鈥淭he last thing I expected to happen this year was to have a freeze on a program he [Pritzker] agreed to as part of an economic package that would help Illinois,鈥� Wheeler explained.