Illinois veto session impacts for QC
The Illinois Legislature adjourned their veto session early Friday morning having taken action on a number of priorities for the Quad Cities Chamber.
Passenger Rail
First and foremost, the House, Senate and Governor’s office came to consensus on how to fund transit reform and downstate investment, including funding for Chicago – Quad Cities passenger rail.
Members are encouraged to reach out to both of their offices to thank them for their hard work on this decades-in-the-making project.
Representative Gregg Johnson: [email protected]
Senator Mike Halpin: [email protected]
Energy Omnibus
Energy has been a significant topic of discussion in recent years and the Illinois General Assembly pushed through changes that require new battery storage investment that will be paid by ratepayers. This legislation was strongly opposed by the state manufacturers' association and risks raising costs on small to mid-sized manufacturers across the state. The bill now heads to the Governor’s desk.
Federal Tax Decoupling
The Legislature moved to decouple the State’s tax code from federal revisions contained in HR1 – the federal reconciliation package that included bonus depreciation, R&D expensing and other pro-business tax policy. Ultimately, this will raise tax liabilities for Illinois companies and complicate Illinois tax code and compliance.
Prevailing Wage for Private TIF Projects
On a positive note, HB3266 which would have required prevailing wage rules to apply to private projects that receive TIF funding, failed to advance through the Legislature. This would have increased direct and indirect costs for development projects in the Illinois Quad Cities, discouraging private investment.
River Edge Redevelopment Zone – Historic Tax Credit
The House and Senate approved legislation extending the sunset for the River Edge Redevelopment Zone (RERZ) Historic Tax Credit (HTC) from 2027 to 2029. East Moline, Moline and Rock Island were all recently included in the RERZ program, which provides a host of development incentives including an uncapped historic tax credit, unlike the statewide HTC. The extension also aligns the RERZ-HTC with the State Historic Tax Credit sunset.