Our coalition is in support of HB 5717:
- A Permanent R&D Tax Credit: Illinois is home to more than 450 corporate R&D facilities that innovate and improve on current products. This credit has been renewed and expired four times in the last 13 years posing as a hindrance to long-term planning for continued R&D spend. The absence of a permanent policy negatively impacts Illinois manufacturing as R&D dollars are being invested in neighboring states with a more secure tax environment. From an employee standpoint, R&D jobs are technical and highly skilled meaning higher salary jobs follow R&D investment. Illinois needs to keep these higher paying opportunities that are vital to our middle class sector.
- Reform the Manufacturers Purchase Credit (MPC): The Illinois Manufacturers Purchase Credit has expired on several occasions in the last decade including sun setting in July 2014. The state needs to reform and make the MPC permanent by merging it into the Manufacturing Machinery & Equipment exemption (MME). Until it expired, the MPC was a complicated and convoluted process that was difficult for both companies and the Department of Revenue to administer. AIM proposed to merge the MPC into the MME to allow manufacturing companies to be incented for the purchase of tangible personal property used or consumed in the manufacturing process.
- Modification to Graphic Arts Sales Tax Exemption: Following the lead of merging into the Manufacturing Machinery & Equipment exemption (MME), AIM recommends permanently including the graphic arts sales tax exemption. This credit expired in 2014 at a time when the industry employed 55,100 workers in more than 2,300 facilities across the state. AIM advocates for legislation that encourages Illinois businesses to invest in higher quality, more technologically advanced printing and graphic arts equipment.
- A Permanent Coal, Aggregate Exploration, Mining and Off-Highway Sales Tax Exemption: Illinois has robust mining, construction and quarry operations and key to maintaining those industries is to incentivize the purchases of equipment used in those applications.