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Transforming, Helping, and Reviving Illinois Versatile Economy (THRIVE) Job Creation Tax Credit Act

SB 3459
Illinois EDGE Credit: Economic Development for a Growing Economy Tax Credit Act was passed in 1999 and was
modeled off of Indianas EDGE program. The EDGE tax credit program promotes job creation in Illinois through the
award of tax credits to eligible businesses.

The EDGE Tax Credit Program is designed to encourage companies to locate or expand operations in Illinois
when there is active consideration of a competing location in another State
Companies do not receive any credits until the agreed upon job creation and capital investment requirements have
been fulfilled
Companies receive credit for 100% of the Illinois withholding attributable to created jobs
o Previous administrations allowed companies to receive tax credits worth 10% 100% (at the Directors
Discretion) of the Illinois withholding attributable to retained jobs
o While agreements always create a floor for minimum jobs that must be created, companies may obtain
credits on any jobs created above the minimum unless the Department, at the discretion of the Director,
places a cap on jobs (extraordinarily rare)
Credit offsets corporate income tax for that tax year (not to exceed 10 years, or 15 in certain cases based on
location efficiency)
If the company does not have a tax liability for a given year or the liability is less than the certificate issued, it is
allowed to carry forward the credit or remaining portion of the credit for a period of 5 years
It can only be used to offset corporate income taxes
The Tax credit cannot exceed the capital investment or the term of the lease
Eligibility:
o Must create 25 new full-time jobs and at least $5 million in capital investment; or
o Must create at least 50 new full-time jobs and at least $2.5 million in capital investment
o Companies with fewer than 100 employees (Small EDGE): Must create at least 5 new full time jobs
and at least $1 million in capital investment.
Companies may not receive an EDGE agreement unless they demonstrate a but-for clause explaining but for
the credit, the project would not occur.
Retail companies are not eligible
The amount of awarded tax credits will be clawed back to the State if the company closes within 5 years of the
agreement.
The tax credit agreement terminates if program eligibility thresholds are not met within 7 years.
The estimate of the value of an EDGE agreement at the time its signed is calculated as:
o # New jobs (e.g. 100) x Ave. annual salary of those jobs (e.g. $50,000) x State income tax rate (3.75%) =
$187,500 x 10 years = $1,875,000

P.A. 97-2 (SB 4) was signed into law in 2011 to, among other tax changes, make modifications to the EDGE program and
enact a sunset date for the program for December 31, 2016. This was the first time a sunset date had been placed on
EDGE since its creation in the 91st General Assembly. Rep. Bradley and Sen. Forby were the House and Senate Chief
Sponsors. The bill passed unanimously in the Senate 50-0-0, by a 90-20-1 vote in the House, and concurred upon by the
Senate again by a 53-0-2.
THRIVE Job Creation Tax Credit: The THRIVE job creation tax credit program promotes job creation in Illinois
through the award of tax credits to eligible businesses.
The THRIVE Job Creation Tax Credit Program is designed to encourage companies to locate or expand
operations in Illinois when there is active consideration of a competing location in another State
Companies do not receive any credits until the agreed upon job creation and capital investment requirements have
been fulfilled
Companies receive credit for 50% of the Illinois withholding attributable to created jobs
Credit offsets corporate income tax for that tax year (not to exceed 10 years, or 15 in certain cases based on
location efficiency)
If the company does not have a tax liability for a given year or the liability is less than the certificate
issued, it is allowed to carry forward the credit or remaining portion of the credit for a period of 5 years
It can only be used to offset corporate income taxes
Companies may sell their credit to another company, creating a more accurate value of the awarded credit

Eligibility:
Must create 10% of current global workforce; or 50 new jobs, whichever is lessor.
Must have a capital investment of $2,500,000 at the project location in the State, except that, if the
applicant employs fewer than 100 employees, than a capital investment of less than $500,000 to be
approved by the Department.
Retail companies are not eligible
The amount of awarded tax credits will be clawed back to the State if the company ceases operations within
duration of the incentive.
Clawed back funds are to be invested in targeting at-risk communities of higher unemployment rates, such as veterans,
women, minorities, and the long-term unemployed.

EDGE Policy

THRIVE Policy

Exchangeable

No

Yes

Formula

100%

50% for new jobs

Performance Based

All or nothing

Credit as jobs created

Special EDGE

Not offered under Rauner


Administration

No

But For Clause

Yes

No

Eligibility Threshold

25 jobs and $5M CAPEX if


greater than 100 employees
5 jobs and $1M CAPEX if less
than 100 employees (Small

10% of current global


workforce, or 50 jobs,
whichever is lesser
CAPEX at DCEO discretion

EDGE)

Benefit Cap

Yes value of tax credit cannot exceed


capital investment or term of lease

Yes
Facility ceases operations within
duration of incentive.

Claw Back

Facility closure within 5 years

Termination

If targets are not met within 7 years

Never during duration of agreement

10 Years

10 Years / 15 years for project located


in areas that is 150+% of the state
unemployment rate

Standard Duration

Funds are returned to local WIOA for


minority, women, and long-term
unemployment job opportunities.