FOR IMMEDIATE RELEASE
August 11, 1999
GOVERNOR APPROVES ECONOMIC DEVELOPMENT
PACKAGE; FOLLOWS THROUGH ON CAMPAIGN PLEDGE
GREENVILLE -- Governor George H. Ryan today signed legislation
designed to level the economic development playing field with other states
and attract new, high-paying jobs to Illinois.
In signing Senate Bill 40, the "Jobs Through Economic Competitiveness
Act," Ryan also announced the creation of the Governor's Economic
Policy Council and the restructuring of the Illinois Economic Development
Board.
The main component of Senate Bill 40 is the Economic Development for a
Growing Economy (EDGE) Tax Credit Act. Ryan pledged during his
gubernatorial campaign to create a new tax incentive program that would
help Illinois better compete with neighboring states and capture a larger
number of businesses looking to expand or relocate.
"This legislation will help Illinois attract and keep good, high-paying jobs,"
Ryan said. "By leveling the economic development playing field, we are
sending a strong message to the business community that Illinois is a great
place to do business."
The EDGE program is a new targeted tax incentive program that would
provide tax credits for businesses that create new jobs and make capital
investments in Illinois. The EDGE program is designed to help areas of
Illinois that are in direct competition with other states for jobs and
development.
Businesses creating new jobs would be able to claim a state income tax
credit equal to a portion of the incremental income tax generated from new
jobs created in Illinois. Provisions of the legislation assure that a company
creates and/or retains new jobs prior to receiving any benefit from the tax
inducement. Similar programs are currently available in Indiana, Kentucky,
Michigan, Missouri and Ohio.
Senate Bill 40 also contains provisions to bolster Illinois' high-tech business
community. The legislation calls for the creation of the Illinois Technology
Enterprise Corporation (ITEC), a regional network of centers, designed to
stimulate the formation, growth and retention of technology-based
businesses in Illinois.
Recognizing the emergence of the "new economy" based on technological
advances, and the increasing use of electronic commerce, Ryan has
appointed a "Governor's Economic Policy Council" to help prepare Illinois
for the realities of our changing economy.
The legislation also directs the Illinois Department of Commerce and
Community Affairs (DCCA) to prepare a five-year economic development
strategy for Illinois. To help implement that plan, Ryan will chair the
reconstituted Illinois Economic Development Board. This CEO-level
advisory board will help the Administration devise and implement the
State's economic development strategic plan.
"For too long Illinois has been without a clear, long-term strategy for
economic growth," said DCCA Director Pam McDonough. "This bill sets
the criteria for the development of a blueprint for lasting prosperity."
"This legislation gives us the economic development tools we need to
sustain a healthy business climate," Ryan added. "It will bring good jobs to
Illinois that probably would have gone to other states, and it will ensure
that Illinois enters the 21st century on sound economic footing."
Senate Bill 40 is sponsored by Senators Frank Watson, R-Greenville and
James Clayborne, D-East St. Louis; and Representatives Thomas
Holbrook, D-Belleville; Mike Bost, R-Murphysboro; John O. Jones,
R-Mt. Vernon; Jay Hoffman, D-Collinsville; and Steve Davis, D-Bethalto.