After being negotiated as part of the 2019 budget package and then frozen by Governor Pritzker prior to its implementation in 2021, Illinois’ Blue Collar Jobs Act (BCJA) has been reinstated and is now accepting applications.
“The reinstatement of this Act is a definite step in the right direction for a state that has developed a reputation over time as being extremely business unfriendly,” said Wilcox. “Rather than placing additional burdens on our job creators, we are finally putting businesses first, and providing them with incentives to build, stay, grow, and thrive in Illinois.”
The Blue Collar Jobs Act program supports large-scale economic development activities by providing income tax credits to companies that make substantial capital investments in Illinois. The tax credits are based on the wages paid to construction workers employed on eligible projects, and are based on the withholding tax paid to construction workers. The Act includes:
- High Impact Business (HIB) Construction Jobs Credit: Equals 50% of the “incremental income tax” attributable to qualified construction jobs for a designated HIB taxpayer during the construction period with an investment of at least $12 million.
- Enterprise Zone (EZ) Construction Jobs Credit: Equals 50% of the incremental income tax attributable to qualified construction jobs for approved capital investments of at least $10 million located in an EZ during the construction period.
- River Edge (RE) Construction Jobs Credit: Equals 50% of the incremental income tax attributable to qualified construction jobs for approved rehabilitation plan of at least $ 1 million located in a RE during the construction period (applicable for tax years beginning on or after January 1, 2021).
- New Construction Economic Development for a Growing Economy (EDGE) Credit: Discretionary credit for up to 50% of the incremental income tax attributable to qualified construction jobs during the construction period for approved capital investment projects over $10 million.
To be eligible, a company must be located in an Enterprise Zone or a River Edge Redevelopment Zone, designated as a High Impact Business, or have an agreement under the Economic Development for a Growing Economy Program. Each pre-requisite program has differing job creation and capital investment minimums/requirements.
“I would encourage all entrepreneurs to look at Illinois when choosing where to take their capital investment,” added Wilcox. “Helping middle class families by providing good jobs with decent wages is incredibly important, and the Blue Collar Jobs Act will go far in accomplishing that goal.”
The Illinois Department of Commerce & Economic Opportunity (DCEO) will host a technical assistance webinar to share details regarding the BCJA program application and processes on Monday, June 26, 2023, from 1 p.m. – 2 p.m. Click here to sign up and RSVP.
Additional information about the program and a universal application can be found at https://dceo.illinois.gov/expandrelocate/incentives/bcja.html .