Legislation would put Illinois workers back on the job and is supported by labor and business
Springfield, IL – State Rep. Tony Mccombie co-sponsored House Bill 5864, the Blue Collar Jobs Act, to incentivize construction projects in the state of Illinois and create jobs for the middle class.
The Blue Collar Jobs Act is supported by both labor and business groups and offers tax incentives to companies making significant capital improvements in Illinois based on the withholding tax paid to construction workers. It does this through the creation of four new tax credits, including:
- High Impact Business construction jobs credit
- Enterprise Zone construction jobs credit
- New Construction EDGE Credit
- River Edge construction jobs credit
“We support prioritizing Illinois construction workers in our state’s economic development toolset through incentives for new construction, expansion, and rehabilitation projects,” said Marc Poulos, Executive Director IN, IL, IA FFC, the labor-management group of the International Union of Operating Engineers, Local 150.
The program will work under the same structure as the current EDGE program:
- Tax credit value is 50% of Illinois income tax withheld of workers covered under the agreement;
- Tax credit value rises to 75% of Illinois income tax withheld of workers covered under the agreement in areas designated to be in an underserved area that meets certain poverty, unemployment, and federal assistance rates;
- Tax credit is issued to the organization that builds, renovates or expands the building just as the EDGE tax credit goes to the company hiring the workers. The tax credit is meant to incentivize the company to construct new buildings or improve existing buildings which can’t be built without the use of Illinois labor.
“The Blue Collar Jobs Act gives growing businesses another reason to make substantial capital investments in Illinois to bring more jobs and opportunities to our state,” said Todd Maisch, President and CEO of the Illinois Chamber of Commerce.
The tax credits only become available after the work has been fully completed. There is no risk to the state for a company not meeting its requirement as the state has already captured the withholding tax prior to the tax credit being issued.
HB 5864 has been introduced is currently in rules waiting to be assigned to committee.