Governor Proposes Improving Tax Cut
We are pleased to announce that this afternoon Governor Blagojevichwill be proposing significant improvements and a three year extension in Illinois' tax credit program. These improvements adopt many of the proposals recommended by the IPA and will basically double the value of the current incentive. The proposed improvements will need to be approved by the legislature and would take effect May 1, 2006.
The primary change in the tax credit would be to make it a 20 percent credit on total Illinois production spending, rather than 25 of only Illinois production wages. The salary cap on wages eligible for the credit will be raised to $100,000 per employee per production. Illinois production spending would be defined as all salary and expense costs associated with production activities taking place within the state. It would also continue encouraging the hiring of Illinois residents of economically disadvantaged areas by providing an additional 15 credit on the wages of individuals who reside in such areas.
Expenses tied to activities taking place outside Illinois, or related to travel into or out of the state (i.e. - airline tickets) would not be covered.
A copy of the governor's press release can be seen at:
http://www.illinois.gov/PressReleases/ShowPressRelease.cfm?SubjectID=3&RecNum=4664
Sincerely,
Eileen Willenborg
President IPA
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