Illinois manufacturers call for tax credits, scholarship plans to attract workers

SPRINGFIELD, Ill. (WAND) — The Illinois Manufacturers' Association hopes to fill tens of thousands of open jobs across the state with new tax credits and scholarship programs during the 2024 legislative session.

A bipartisan group of state lawmakers are supporting a plan to provide manufacturing companies a tax credit if they help pay student loan debt for their employees.

Sponsors said many companies already assist workers with education costs, but others are hesitant to help because they can't afford to pay off loans for every employee.

"What a great way to attract workers or keep your workforce by saying you have $25,000 of debt and I will pay it off for you as long as you work for me," said Mark Denzler, President and CEO of the Illinois Manufacturers' Association. "It's a great opportunity to help those individuals struggling with college debt while also making sure we have a great workforce."

Another plan could allow high school students to go to community college for free if they enroll in a manufacturing program. Students participating in apprenticeships or union manufacturing programs would also qualify for the assistance.

"We need folks to come into manufacturing," said Sen. Karina Villa (D-West Chicago). "We need students to know this field is not the manufacturing of 50 years ago. There's really fun and exciting things that are happening in manufacturing."

Separate legislation could allow high school students to take two years of career and technical education courses in place of the state's future foreign language class requirement for graduation. Rep. Amy Elik (R-Alton) said this change can help students have the flexibility to take courses that provide hands-on experience.

The two-year foreign language requirement for high school graduates will take effect for freshman during the 2028-29 school year.

"School districts within my district, and outside of my district as well, have told me that this requirement is a huge concern because of the lack of foreign language teachers already," Elik said. "Some are concerned that they may have to cut back in other areas such as CTE coursework to invest in those additional class sections in foreign language."

Elik has also introduced a bill to allow 10 Illinois manufacturers to open on-site, employee-only childcare centers at no cost to workers. The manufacturer childcare incentive pilot program would require employers to following necessary staffing, medication, liability insurance and background check requirements.

"We know that the lack of available childcare is a hindrance to getting and keeping people, especially women, in the workforce," Elik said. "It will be a way for employers to provide a key benefit to their employees and to bring more people to the workforce."

Senate and House Republicans would also like to pass legislation to modernize the state's research and development tax credit to attract new companies to the state. Sen. Don DeWitte (R-St. Charles) told reporters Wednesday that the current R&D tax credit has not been modified since 1986, and the tax credit has expired four times.

"Manufacturers and other innovators are planning, if they're worth their salt, well beyond five years out," DeWitte said. "Illinois' history of turning the credit on and off is harmful if we want to attract quantum advanced manufacturing, bio-pharmaceuticals and technology companies here to our state."

DeWitte stressed that lawmakers should approve a permanent or long-term extension of the tax credit to match the federal research and development credit.

Denzler also noted that manufacturers will continue to advocate for proposals to establish new regulations for permitting, liability, land issues and fees surrounding carbon capture and sequestration. IMA members believe other states are taking advantage of CCS and winning competitive federal funding. Denzler said Illinois is primed to be a leader in CCS and reach clean energy goals easier.