After being agreed to in 2019 and then frozen prior to its implementation, Illinois’ Blue Collar Jobs Act (BCJA) has been reinstated.
According to State Senator Don DeWitte (R-St. Charles), a budget negotiator for Senate Republicans, reinstatement of the Act has been a key priority for Senate Republicans during budget negotiations this spring.
“This is an important tool that will spur economic development, create jobs, and above all, let the nation know that Illinois is open for business,” said DeWitte. “It provides corporate tax credits for employers and will really help middle class workers find and keep jobs that provide a good wage. It is supported by both labor groups and business groups.”
The Blue Collar Jobs Act program supports large-scale economic development activities by providing income tax credits to companies that make substantial capital investments in Illinois. The tax credits are based on the wages paid to construction workers employed on eligible projects, and are based on the withholding tax paid to construction workers. The Act includes:
- High Impact Business (HIB) Construction Jobs Credit: Equals 50% of the “incremental income tax” attributable to qualified construction jobs for a designated HIB taxpayer during the construction period with an investment of at least $12 million.
- Enterprise Zone (EZ) Construction Jobs Credit: Equals 50% of the incremental income tax attributable to qualified construction jobs for approved capital investments of at least $10 million located in an EZ during the construction period.
- River Edge (RE) Construction Jobs Credit: Equals 50% of the incremental income tax attributable to qualified construction jobs for approved rehabilitation plan of at least $ 1 million located in a RE during the construction period (applicable for tax years beginning on or after January 1, 2021).
- New Construction Economic Development for a Growing Economy (EDGE) Credit: Discretionary credit for up to 50% of the incremental income tax attributable to qualified construction jobs during the construction period for approved capital investment projects over $10 million.
To be eligible, a company must be located in an Enterprise Zone or a River Edge Redevelopment Zone, designated as a High Impact Business, or have an agreement under the Economic Development for a Growing Economy Program. Each pre-requisite program has differing job creation and capital investment minimums/requirements.
“I was a proud supporter of this program when it was approved in 2019, and am glad to see it finally coming to fruition now,” added DeWitte. “The entire 33rd Senate District is located in an Enterprise Zone, so this program will be a huge driver of future capital investment in Kane, McHenry, and DuPage Counties.”
The Illinois Department of Commerce & Economic Opportunity (DCEO) will host a technical assistance webinar to share details regarding the BCJA program application and processes on Monday, June 26, 2023, from 1 p.m. – 2 p.m. Click here to sign up and RSVP.
Additional information about the program and a universal application can be found at https://dceo.illinois.gov/expandrelocate/incentives/bcja.html.