Budget package sent to Illinois’ governor contains various tax credits

[April 19, 2022]  By Greg Bishop | The Center Square

(The Center Square) – A series of tax credits are part of the budget package Illinois lawmakers approved earlier this month and sent to the governor Monday.

Before adjourning, state lawmakers passed the largest spending plan in state history, coming in at $46.5 billion. Gov. J.B. Pritzker signaled he’ll support the bill. With the appropriations, tax policy and budget implementation bill now on his desk, he’s expected to sign the package soon.

Aside from the temporary reduction of the grocery tax from 1 to zero percent, and a delay of the looming gas tax increase, there are tax rebates on income and property. There are also earned income credits and tax credits for teachers.

During discussion on the tax policy portion of the budget in the House, state Reps. Deanne Mazzochi, R-Elmhurst, and Mike Zalewski, D-Riverside, were debating why the package wasn’t parsed out further to get bipartisan support on various measures.

“I sat in [Executive Committee] for two hours and I heard from your caucus about things that were problematic with the bill,” Zalewski said. “We added microchip [manufacturers tax credit], we put coal [equipment tax credit] back in.”

The coal equipment tax credit was pushed for by Republicans, saying coal worker safety depended on credits for new equipment. State Rep. Tim Butler, R-Springfield, also pushed for adding the microchip manufacturers credit.

“To have somebody come in and set up shop for 100, 200, 500 jobs is really what we’re looking at here, and that would really drive change not only in the semiconductor production, but also in our economy in the state of Illinois,” Butler told WMAY.

Illinois state Rep. Mike Zalewski, D-Riverside
Greg Bishop | Watchdog.org

The credit would apply to the number of jobs such manufacturers bring in. Butler said it’s similar to the credit lawmakers had previously approved for electric vehicle and battery manufacturers.

Butler acknowledged carve outs for one sector over others rather than lowering taxes for all businesses is the way Illinois operates.

“What can we do as a state to bring you into the state to make sure that you’re locating jobs here, how can we make it easier for you,” Butler said. “That’s a mindset shift that for far too long hasn’t changed here in Illinois.”

Not included is a credit for setting up endowments. Zalewski promised to work on that in the future.

“We have a limited amount of excess revenue to be able to afford these things this year but it’s a worthwhile project and I’ll continue to work with you on that,” Zalewski told state Rep. Norine Hammond, R-Macomb.

The 4,000 page budget package including the appropriation plan, tax policy and budget implementation was sent to the governor Monday. He’s expected to sign it.

Greg Bishop reports on Illinois government and other issues for The Center Square. Bishop has years of award-winning broadcast experience and hosts the WMAY Morning Newsfeed out of Springfield.