***EDGE has been extended to April 30th, 2017. This is the final date the Department can execute new agreements. All EDGE applications need to be submitted to the Department no later than March 31st, 2017.
The EDGE program provides special tax incentives to encourage companies to locate or expand its operations in Illinois when there is active consideration of a competing location in another state. Tax credits are available to qualifying companies, equal to the amount of state income taxes withheld from the salaries of employees in newly created jobs. Non-refundable credits can be used against corporate income taxes to be paid.
Companies must provide documentation that competition among a competing state(s) exists, and agree to invest a minimum of $5 million in capital improvements and create at least 25 new full time jobs in Illinois. For a company with 100 or fewer employees, capital investments of $1 million and at least 5 new full time jobs created in Illinois is required.
The program allows companies to reduce the costs of doing business in Illinois when compared with similar costs in other states where operations could have been located. Tax credits amounts are calculated on a case-by-case basis.
Applicants must demonstrate that if not for the Credit, the Project would not occur in Illinois by demonstrating:
- Multiple state options are available and could reasonably and efficiently locate outside of the state; or
- At least one other state is being considered for the project; or
- Receipt of tax credits is a major factor in Applicant's decision and that, without incentive, Applicant likely would not create and/or retain jobs in Illinois; or
- Tax credit is essential to Applicant's decision to create and/or retain jobs in the state.
The cost differential is to be identified, using the best available data, in the projected costs for Applicant's project compared to the projected costs in the competing state(s), including the impact of the competing state's incentive programs.
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