11 Nov 2015

Administration Takes Step Forward on Job Creation Tax Credits

By Lyndsey Walters
- DCEO Signing EDGE Credit Agreements; Still Will Not Disburse -
-- Film Credits, Enterprise Zones Also Impacted --
SPRINGFIELD - After reaching economically-responsible compromises on Unemployment Insurance Reform, the Child Care Assistance Program and DON Score legislation, the Rauner Administration announced today that it is taking some steps forward on EDGE Tax Credits as well as re-instituting the Film Tax Credit approvals. Both credits were suspended for new projects at the beginning of the fiscal year.
Since taking office, the Administration has been implementing policies to ensure a more fiscally-responsible approach to EDGE agreements in order to balance investment in Illinois with taxpayer benefits. Policy changes include :
1.       No longer supporting "Special EDGE" agreements (see below for more information) that only benefit certain companies that can afford lobbyists;
2.      No longer providing tax credits for job retention, only for capital investment and net new job creation;
3.      Requiring that tax credits can only be obtained for jobs created above a baseline of all existing employees located within the state, rather than just the baseline of employees located at the specific project location;
a.       In the past, a company that signed an EDGE agreement for an expansion project in a certain location only needed to maintain a requisite number of employees at that specific facility in order to meet its requirements. Laying off employees at a different facility in the state, or even closing it, would not have impacted its ability to continue receiving taxpayer funded benefits for the facility for which it was receiving the EDGE agreement;
4.      Prohibiting more than one tax credit on the same facility. Previous administrations would allow multiple EDGE deals on jobs created at the same facility;
5.      Focusing on marketing the assets of the State, rather than leading with our incentives.
With these policy changes now firmly established at Department of Commerce, signs of progress with the legislature and a number of job-creating projects in the pipeline, the Administration will now allow Department of Commerce to make an EDGE offer to companies, confirm eligibility and enable companies to demonstrate that they've met all the requirements necessary to receive credits. Actual EDGE and film tax credits for new projects will still not be certified or able to be claimed until an FY16 budget is enacted. These changes will allow the Administration to better recruit new investment to Illinois without impacting the budget.
An overview of the EDGE Credit Process is below:
1.       Outreach & Negotiations: Department of Commerce engages with a company to determine financials, need, competing offers and benefit of the project to the State;
- This is where the process had been suspended.
2.      EDGE Offer: If the Department finds that providing an incentive is in the best interest of the State, it sends a letter to the company officially offering the incentive and outlining the requirements it must meet (i.e. specific job creation & investment); at that point, a company may begin creating jobs and investments that will count toward meeting its agreement requirements;
3.      Eligibility Approval via Signed Agreement: Once the company elects to move forward with the project, the Department and the Company sign a binding EDGE agreement which confirms EDGE eligibility;
4.      Company Reporting: Each year the company qualifies to earn the credit, it sends a report and third-party audit to the Department demonstrating it has met the requirements;
5.      Department of Commerce Credit Certification: The Department reviews the report and if sufficient, provides the company with a certification that it has met all the necessary requirements and earned the credits;
- This is where the suspension will continue until a budget is enacted to ensure no budget impact during this time
6.      Company Credits Claimed w/IL Dept of Revenue: The company provides the Department certification to the IL Department of Revenue in order to the claim the credit against its income taxes.
The Department will also commence certification of the 49 Enterprise Zones the Illinois Enterprise Zone Board approved in August. Enterprise Zones will become effective January 1, 2016.
Enterprise Zones To Be Certified by the Department:

1. Alexander/Pulaski
2. Bedford Park
3. Belleville
4. Bensenville
5. Boone County
6. Cal Sag
7. Canton Fulton County
8. Champaign City/County
9. Chicago I
10. Chicago II
11. Chicago III
12. Chicago IV
13. Chicago V
14. Cicero
15. Clinton County
16. Danville
17. Decatur/Macon County
18. DeKalb County
19. Des Plaines River Valley
20. Diamond
21. Edgar County/Paris
22. Fairmont City/Caseyville
23. Fairview Heights
24. Franklin Park
25. Galesburg
26. Harvard/Woodstock
27. Hodgkins/McCook
28. Kankakee County
29. Kankakee River Valley
30. Loves Park/Machesney Park
31. Macomb/Bushnell
32. Madison County Discovery
33. Monmouth Warren County
34. Mt. Carmel/Wabash County
35. Mt. Vernon/Waltonville
36. Nashville/Washington County
37. Northern Tazewell County
38. Ottawa Area
39. Peoria Urban
40. Quincy/Adams
41. Riverbend
42. Rockford EZ 1
43. Rockford I-90
44. Southern Tazewell
45. SW Madison County
46. Springfield/Sangamon County
47. Streator Area
48. Urbana/Champaign County
49. Will-Cook County
###
09 Nov 2015

Statement on Senate Bill 570

By Lyndsey Walters

SPRINGFIELD - Governor's office spokesman Lance Trover released the following statement regarding Senate Bill 570:

"As a result of bipartisan discussions with legislators concerning the future of the Child Care Assistance Program, the Rauner administration today plans to amend the emergency rule it filed at the beginning of the fiscal year.  Under the amended rule, income eligibility will rise to 162% of the federal poverty level while current co-pays will remain intact. Other eligibility and restrictions will also be lifted pending further review and legislative consultation. Additionally, the governor's office will establish a bipartisan, bicameral task force aimed at ensuring the long-term stability of the program.

The governor's office thanks the serious, good-faith negotiations by members of the legislature who made today's announcement a reality.  This bipartisan agreement will allow us to avoid the unintended consequences and costs that SB 570 would have brought.  By working together, we will be able to bring financial stability to an important program valued by members of both parties."

###

09 Oct 2015

Governor Announces Appointments 10/09/2015

By Lyndsey Walters

CHICAGO - Governor Bruce Rauner announced he has made the following appointments to the Board of Trustees for the Illinois Historic Preservation Agency.

 

 

Name: Jim Bruner

Position: Chair - Illinois Historic Preservation Agency

 

Governor Bruce Rauner has appointed Jim Bruner to the Board of Trustees for the Illinois Historic Preservation Agency. He brings nearly five decades of business experience to the board.

Bruner is the President of United Contractors Midwest, an asphalt paving company founded in 2001. Prior to that company's founding, Bruner was President of Illinois Valley Paving Company in Winchester, where he worked for over  30 years.

On top of his business, Bruner is an active member of the community. He serves as Trustee and Secretary of the Central Laborers Pension and Annuity Board and Chairman of Investments. He is a Life Director of Associated General Contractors of America and a past two-term President of the Associated General Contractors of Illinois.

Bruner earned his bachelor's degree in business from Illinois College. He lives in Jacksonville, Illinois.

 

 

Name: Gail Shiel

Position: Trustee - Illinois Historic Preservation Agency

Governor Bruce Rauner has appointed Gail Shiel to the Board of Trustees for the Illinois Historic Preservation Agency. She brings over three decades of experience in art, design and civic engagement.

Shiel is a self-employed interior designer and has been designing commercial spaces for over 30 years. She is also an adjunct professor at Indiana University-Purdue University-Indianapolis (IUPUI). She teaches architectural and interior technology. She previously held full-time faculty positions at IUPUI and Butler University.

Shiel is also a fellow of the International Interior Design Association, a member of the board of directors for the Institute of Business Designers and a member of the Illinois Humanities Council.

Shiel received a bachelor's degree in environmental design & interior design from Purdue University. She is currently working on her master's degree in arts administration and policy at the Art Institute of Chicago. She lives in Chicago.

 

Name: Andy Volpert

Position: Trustee - Illinois Historic Preservation Agency

 

Governor Bruce Rauner has appointed Andy Volpert to the Board of Trustees for the Illinois Historic Preservation Agency. He brings 15 years of experience as a history and social studies teacher.

Since 2003, Volpert has taught AP American Government, U.S. History and other classes at Springfield Southeast High School. He previously spent three years teaching at Morrisonville High School.

Volpert volunteers as a youth baseball and basketball coach in the community. He is also a dedicated member of the Laurel United Methodist Church and the Southern Illinois University Alumni Association.

Volpert received a bachelor's degree in history education and a master's degree in history from Southern Illinois University Carbondale. While earning his master's, Volpert won the Stanley A. Zucker Essay Prize for his outstanding research in the SIU History Department. He lives in Springfield.

 

 

Name: Jane A. Hay

Position: Trustee - Illinois Historic Preservation Agency

Governor Bruce Rauner has appointed Jane Ann Hay to the Board of Trustees for the Illinois Historic Preservation Agency. She has an extensive background in state government and real estate.

Hay is a real estate broker with The Real Estate Group, Inc., a company that provides residential and commercial real estate sales and leasing in Springfield and Sangamon County. Prior to obtaining her real estate license in 2009, Hay served as Project Manager for REAL ID in the Illinois Secretary of State's office. She was also Manager of Scheduling for the Office of the Illinois State Treasurer for eight years.

Hay is a member of the Capital Area Association of Realtors (CAAR) Board of Trustees, and was awarded the CAAR "Rising Star" Award in 2011.She is President of the Chatham Area Chamber of Commerce, Secretary of the Chatham Area Public Library Foundation Board, and a member of the Ball-Chatham Education Foundation Board.

Hay is a graduate of Taylorville High School and has a certificate from Patricia Stevens Business College. She lives in Chatham.

###
09 Oct 2015

Over 70 Democratic Lawmakers Voted to Limit Collective Bargaining Requirements

By Lyndsey Walters

-- House and Senate Democratic Leadership Repeatedly Supported Collective Bargaining Changes -- 

 

Governor Rauner yesterday delivered remarks explaining how reforming collective bargaining is a bi-partisan idea and would save taxpayers billions. In fact, many Democrats, including the House Speaker and House Majority Leader as well as the Senate President and Senate Majority Leader, have voted in recent years to limit and remove collective bargaining requirements in an effort to save taxpayers money.

"Twice in the last four years, Illinois Democrats voted to reform collective bargaining, but now they are hiding behind it to try to force spending higher and raise taxes on the people of Illinois," Rauner spokesman Lance Trover said.  "The notion that collective bargaining is sacrosanct to the Democratic Party is nothing more than political gamesmanship to protect the status quo and hurt taxpayers."

 

SB 1 (Pension Reform of 2013)

Senate Democrats voting aye:

Biss, Cunningham, Harmon, Hunter, Jones, Landek, Martinez, McGuire, Morrison, Mulroe, Munoz, Raoul, Sandoval, Silverstein, Stadelman, Steans, Van Pelt, Mr. President

http://www.ilga.gov/legislation/votehistory/98/senate/09800SB0001_12032013_005000R.pdf

House Democrats voting aye:

Acevedo, Andrade, Arroyo, Bradley, Burke, D., Burke, K., Cassidy, Chapa LaVia, Conroy, Crespo, Currie, D'Amico, Davis, M., Drury, Dunkin, Evans, Feigenholtz, Fine, Flowers, Gabel, Harris, G., Hernandez, Hurley, Jones, Kifowit, Lang, Manley, McAsey, Mitchell, Moylan, Mussman, Nekritz, Sente, Soto, Tabares, Thapedi, Turner, Verschoore, Walsh, Welch, Williams, Willis, Yingling, Zalewski, Mr. Speaker

http://www.ilga.gov/legislation/votehistory/98/house/09800SB0001_12032013_006000R.pdf

 

SB 7 (Labor Reform of 2011)

Senate Democrats voting aye:

Biss (House), Clayborne, Collins, Cunningham (House), Delgado, Forby, Haine, Harmon, Holmes, Hunter, Hutchinson, Jones, Koehler, Landek, Lightford, Martinez, Mulroe, Munoz, Noland, Raoul, Sandoval, Steans, Sullivan, Trotter, Mr. President

http://www.ilga.gov/legislation/votehistory/97/senate/09700SB0007_04152011_059000T.pdf

House Democrats voting aye:

Acevedo, Arroyo, Beiser, Bradley, Burke, D., Burke, K., Chapa LaVia, Crespo, Currie, D'Amico, Davis, W., DeLuca, Dunkin, Feigenholtz, Flowers, Ford, Franks, Gabel, Gordon, Harris, G., Hernandez, Jackson, Jones, Lang, Lilly, Mautino, Mayfield, McAsey, Mussman, Nekritz, Phelps, Rita, Sente, Soto, Thapedi, Turner, Verschoore, Williams, Zalewski, Mr. Speaker

http://www.ilga.gov/legislation/votehistory/97/house/09700SB0007_05122011_002000T.pdf

---

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