Reis: Legislation Would Help Create Jobs

February 3, 2006

Springfield.….As State Representative David Reis (R-Ste. Marie) continues his push for a better business climate in Southeastern Illinois, he has introduced a piece of legislation he believes can make a difference for new businesses in his 108th District.

HB4836 amends the Economic Development for a Growing Economy Tax Credit Act. “Right now when companies locate in Illinois or expand existing facilities they might qualify for EDGE tax credits” said Reis. “However, they don’t get those tax credits until the end of their first fiscal year. And everyone knows how critical that first year can be when it comes to having available operating cash.”

Reis’ bill is modeled after a new Missouri law and provides that any applicant who qualifies for these EDGE Tax Credits may, at their sold discretion, opt to retain up to 50 percent of employees’ withholdings in lieu of an income tax credit at the end of the year. “The employee still gets credit for 100% of their withholdings but for the employer it’s like having a cash infusion every payroll. That is money that can be used to help run business operations during the first critical year of startup” Reis said.

The bill has received the support of the Illinois Chamber of Commerce, the Illinois Manufacturers Association, the NFIB, and the Illinois Retail Merchants Association.

“These groups were all instrumental in helping me draft this important legislation. We are excited about moving the bill forward” said Reis. “Illinois must remain competitive with our neighboring states if we wish to continue creating good paying jobs.”