Recently, our own Kurt Anderson testified before the joint Revenue Committee regarding the EDGE Tax Credit and proposed modifications to the legislation to grant greater access for small businesses to the EDGE Tax Credits. Read a short synopsis of the hearing below.
After an historic joint hearing among the State Government and Revenue and Finance Committees today on Representative Jack Franks’ legislation HB 1336 to modernize and reform the EDGE tax credit program, there were broad areas of agreement and several areas of concern expressed on Illinois’ economic development policy.
The Small Business Advocacy Council applauds Representative Jack Franks for his leadership at pushing to ensure state economic development policy benefits all businesses, not just those with special connections or clout to get the attention of public employees.
Broad areas of agreement from the testimony include:
- Allowing professional services firms to compete for EDGE tax credits (currently they are statutorily prohibited from doing so)
- Lowering the capital investment requirements for EDGE tax credit applicants as they have little to do with the cost per job created (which ought to be a key metric in determining the success of each application).
- Ensuring that small and mid-sized businesses have a fair opportunity to compete for EDGE tax credit.
“I was disturbed to confirm that there is no limit on how many tax credits the Department can give away without any oversight from the General Assembly. They could give away all the corporate income tax without anyone able to stop them and it is outside the budget process entirely. That’s not right.” said Representative Franks.
“Small businesses that are committed to Illinois are the engine of job growth, but the state’s economic development policy is built around those businesses who say they want to leave. We need to change that to help benefit the businesses who are building their businesses here.” said Elliot Richardson, President of the Small Business Advocacy Council.
Representative Franks intends to continue this discussion over the summer and fall to build more support for an economic development policy that benefits everyone, with hope to move legislation in the veto session or in early 2014.