After being negotiated as part of the 2019 budget package and then frozen by Governor Pritzker prior to its implementation in 2021, Illinois’ Blue Collar Jobs Act (BCJA) has been reinstated and is now accepting applications.
“The provisions of this Act will encourage significant capital development in our state. It will create jobs, and put Illinois on a path of economic success,” said Lewis. “It is supported by both labor and business groups, and will go far in providing good, high-paying jobs for middle class construction workers.”
The Blue Collar Jobs Act program supports large-scale economic development activities by providing income tax credits to companies that make substantial capital investments in Illinois. The tax credits are based on the wages paid to construction workers employed on eligible projects, and are based on the withholding tax paid to construction workers. The Act includes:
- High Impact Business (HIB) Construction Jobs Credit: Equals 50% of the “incremental income tax” attributable to qualified construction jobs for a designated HIB taxpayer during the construction period with an investment of at least $12 million.
- Enterprise Zone (EZ) Construction Jobs Credit: Equals 50% of the incremental income tax attributable to qualified construction jobs for approved capital investments of at least $10 million located in an EZ during the construction period.
- River Edge (RE) Construction Jobs Credit: Equals 50% of the incremental income tax attributable to qualified construction jobs for approved rehabilitation plan of at least $ 1 million located in a RE during the construction period (applicable for tax years beginning on or after January 1, 2021).
- New Construction Economic Development for a Growing Economy (EDGE) Credit: Discretionary credit for up to 50% of the incremental income tax attributable to qualified construction jobs during the construction period for approved capital investment projects over $10 million.
To be eligible, a company must be located in an Enterprise Zone or a River Edge Redevelopment Zone, designated as a High Impact Business, or have an agreement under the Economic Development for a Growing Economy Program. Each pre-requisite program has differing job creation and capital investment minimums/requirements.
“I would encourage all entrepreneurs to look at Illinois when choosing where to take their capital investment,” added Lewis. “The Blue Collar Jobs Act will promote a business climate that encourages job creators to build, stay, expand, and grow in Illinois.”
The Illinois Department of Commerce & Economic Opportunity (DCEO) will host a technical assistance webinar to share details regarding the BCJA program application and processes on Monday, June 26, 2023, from 1 p.m. – 2 p.m. Click here to sign up and RSVP.
Additional information about the program and a universal application can be found at https://dceo.illinois.gov/expandrelocate/incentives/bcja.html.