Springfield- With the EDGE tax credit extension set to expire at the end of April, lawmakers are busy trying to formulate a new plan.Â
A House committee heard from the Department of Commerce and Economic Opportunity on their support for the Transforming, Helping and Reviving Illinois' Versatile Economy program, or THRIVE. According to Sean McCarthy, Director of the Department of Commerce and Economic Opportunity, This program is an update to the Economic Development for a Growing Economy, or EDGE program.
Under THRIVE businesses would still be given a tax credit incentive for job creation. THRIVE would also change the Illinois tax withholding for jobs creation from 100 percent under EDGE to half that, at 50 percent.Â
THRIVE would also allow for businesses of all sizes to be eligible for this tax credit. "The eligibility threshold is modified so small businesses have a greater access to the program.THRIVE provides that any company regardless of the size has easier access to the incentive" said McCarthy. "So for example the current EDGE program you have a requirement of 25 jobs and a capitol investment of $5 million. In THRIVE the eligibility is 10 percent of the global workforce or 50 jobs, whatever is lesser."
THRIVE would also redefine the "But, for" clause that is current in EDGE. This would end the practice of companies seeking incentive offers from other states, while still requiring businesses to submit a case for why the incentive is needed.
There are Senate and House versions of the THRIVE program, both are waiting hearing in a committee.
The Illinois Chamber of Commerce has a competing tax incentive package as well.Â
