Deadline Extension Announced for Illinois EDGE Tax Credit

Posted in Accounting, Audit and Tax | Tax | State & Local Tax on February 15, 2017

The Economic Development for a Growing Economy (EDGE) Tax Credit program has been extended until April 30, 2017.

The state of Illinois created the EDGE incentive program with the intention of encouraging companies to locate or expand operations in Illinois through the offer of a tax credit for capital investment and job creation.  The EDGE program, originally set to expire in December 2016, encourages companies of all sizes to secure benefits as a result of job creation in Illinois.

The Illinois Department of Commerce and Economic Opportunity (DCEO) is advising companies with pending EDGE Tax Credit projects to submit their applications by the end of February 2017 for the best results (to allow for processing and negotiations). 

The non-refundable credit, a percentage of income tax held from newly created jobs, is determined on a case-by-case basis and can be used to offset corporate income taxes (or flows through to be used to offset regular Illinois individual income tax liabilities of partnership and S Corporation owners) for up to 10 years per project.  Any excess credits can be carried forward for five years.

To qualify, EDGE participants need to submit a written application demonstrating the following:

  • The applicant is in the manufacturing, processing, assembling, warehousing, distribution, research and development or tourism service business.
  • Commitment to a capital investment in Illinois of at least $5 million
  • Provide evidence that if not for the credit, the project would not occur in Illinois

It is important to note that while no new EDGE agreements can be made after April 30th, existing agreements will remain in effect.

Please contact a Sikich tax advisor for more details and assistance in regard to EDGE eligibility requirements, qualifications and the tax credit application.

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Disclaimer: This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.