Illinois: New Era of Sunshine Pushes Clouds Aside -- Site Selection magazine, March 2000

Illinois: New Era
of Sunshine Pushes
Clouds Aside (cover)

New Tools to Help
Companies Compete

Chicago's
Robust Rebirth

Suburban Chicago's
High-Tech Flair

MCI WorldCom
Connects With Rockford

Quaker Oats Stays,
Expands in Danville

Southwestern Illinois:
Distribution Destination

Carbondale and the
Route 13 Corridor

Request Information

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New Tools to Help Companies Compete

Expanding firms talking turkey with Illinois officials about location opportunities will find that the state's toolbox of incentives and other forms of financial assistance isn't empty anymore.

"One of the most compelling things we've done in Illinois is create the EDGE (Economic Development for a Growing Economy) program, which gives a tax credit for job creation," McDonough says. "That kind of tax credit was something all of our surrounding states had, but the philosophical opinion in the previous administration was that such a credit was not a good idea. But Gov. Ryan said that it was one of the first things we needed to do."

The legislation, Gov. Ryan said upon signing it into law, "will help Illinois attract and keep good-paying jobs. By leveling the playing field, we are sending a strong message to the business community that Illinois is a great place to do business."

Above: Before and after: Sara Lee Branded Foods moved into its new $38 million Chicago research facility last year, remodeling a building that had been vacant for more than 20 years.

Having the program has been "a tremendous advantage," McDonough confirms. "We're in the process now of implementing the program, and we have over 70 applications. That indicates both our overall activity level and the interest in this incentive."

Under EDGE, companies that create 25 or more new jobs and invest US$5 million are eligible for a corporate tax abatement on the incremental amount of income tax paid by the new employees. EDGE credits are available to new or expanding manufacturing, interstate services and tourism firms throughout Illinois; only retail and professional services are excluded.

Dearborn Plaza Another major tool for business expansion is Illinois FIRST, Gov. Ryan's $12 billion, five-year infrastructure and transportation program.

"Illinois FIRST will help prepare this state for the future," Ryan said last spring, when the program became law. "It will keep this state in the forefront of the nation's transportation system, will make classrooms better for our children and help large and small communities attract new residents and new businesses."

The program includes $4.1 billion in new funds for road, rail and air infrastructure; $4.1 billion for mass-transit system improvements; $2.2 billion to construct and repair schools; and $1.6 billion to help bolster the state's economy, promote a clean environment and improve the overall quality of life in Illinois communities. "Right now my agency is administering about $600 million of that amount," McDonough reports.

Right: Dearborn Plaza, at 20 West Kinzie St. in Chicago, is a development of
The Alter Group.

The state's industrial training program came out a winner last year too, securing a budget hike of some 40 percent. The funds will enable an estimated 450 Illinois companies to train and provide job skills for nearly 12,000 more workers. And technology development funding was boosted to $7 million, up from $800,000 the previous year.

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