Posted by Bruce Kletsky on 06.03.19
Just last week, the General Assembly approved and sent to Gov. J.B. Pritzker a measure to extend the life of the state's tax credit for research and development. For Illinois innovators, manufacturing and technology companies that employ them, it was an important step in the right direction. The bill also would establish a new credit for apprenticeship educational expenses.
This program provides a 6.5 percent credit on increases in in-state Research and Development(R&D) spending. In other words, if a company invests an average of $1 million a year on testing and creating new products, and then boosts that spending to $1.5 million, it would receive a 6.5 percent break on that additional $500,000 investment, or $32,500.
Companies across every industry throughout Illinois are continually investing in new and improved products to compete in the global economy. Extending the R&D state tax credits encourages them to invest those dollars right there in Illinois.
Under the new bill, the R&D credit will be extended only another five years, to 2027, and the apprenticeship credit of up to $5,000 a worker will have a statewide cap of $5 million a year.