Gov. Pritzker Signs Business Development Omnibus Package
Slate of bills focuses on growth incentives, promotes clean energy and tech expansion
June 26, 2024
Chicago—Today Governor JB Pritzker signed a package of bills to incentivize corporate development and increase Illinois’ competitive edge for attracting new businesses and capital investments. The omnibus bills, HB5005, include investments in tax credit programs for the film industry and research and development projects across the state, as well as for the Economic Development for a Growing Economy (EDGE) and Reimagining Energy and Vehicles (REV) programs. The bills also build on Illinois’ growing status as a tech hub and reduce red tape for the Blue Collar Job Act (BCJA).
“Since day one of my administration I have been laser-focused on ensuring businesses that uplift Illinoisans and our economy see the many benefits this state can offer—and that has paid off many times over,” said Governor JB Pritzker. “We’re continuing that essential work with this package of legislation, attracting new and expanded business opportunities that offer good paying jobs and build out industries of the future like EV and quantum.”
In 2023, Illinois tripled corporate investments incentivized by the Illinois Department of Commerce and Economic Opportunity (DCEO). New jobs created by the EDGE and REV programs jumped up more than 60 percent from the previous year - from 2,691 to 4,329 - with the number of retained jobs increasing exponentially, from 204 to 3,127. Updates to Illinois’ premier business development tools will make Illinois even more competitive for jobs and capital investment and could generate more than an estimated $21 billion in new state revenue into GRF over the next 30 years.
The bill also expands River’s Edge Redevelopment Zones (RERZ) to include 7 new downstate communities, which will enable them to leverage new incentives to attract investments, create jobs and invest in their communities. Based on community feedback, the bill adds zones in Moline, East Moline, Ottawa, LaSalle, Peru, Rock Island and Quincy.
The Illinois film tax credit, created by Governor Pritzker in 2022 and expanded through 2032, offers tax credits for local labor and production expenditures and has been a key factor in Illinois landing major productions. The State's tax credit has resulted in a $6.81 return on investment for every dollar spent on the incentive, resulting in $3.6 billion in economic activity between FY17 and FY22. 94 percent of Illinois’ current film industry economic impact is attributed to the impact of the tax credit enacted by Governor Pritzker.
The omnibus also includes:
- Recodification of eligibility for the Manufacturing Illinois Chips for Real Opportunity (MICRO) program: This law codifies quantum computing, semiconductor, and microchip companies in the R&D phase as eligible for the program while reducing initial investment requirements to allow smaller businesses to enter the market.
- Creation of a Quantum Enterprise Zone (QEZ): Designed to help position Illinois’ proposed quantum campus - funded through a $500 million bonded capital request introduced in the FY25 budget – to attract up to $11 billion in CHIPS and related federal funding and an estimated $20 billion in private investment.
- Reduction of Blue Collar Jobs Act (BCJA) Red Tape: Based on industry feedback, this change allows BCJA credits to be based on industry standard or 3rd party verified construction wages rather than the submission of monthly payroll data.
"Today's bill is a major step forward in recognizing the value of a diverse, adaptable economy that empowers workers at every stage in their careers," said Lt. Governor Juliana Stratton. "This package supports emerging industries and streamlines processes, strengthening Illinois' presence on the global stage. I'm excited to see how our communities will benefit from this growth!"
“There’s never been a better time to do business in Illinois due to Governor Pritzker’s focus on economic growth and support from the General Assembly,” said DCEO Director Kristin Richards. “This legislation demonstrates Illinois’ steadfast commitment to working with the business community and stakeholders to meet the needs of changing industries and continue to make record-breaking economic progress.”
“Today’s signing of HB5005 represents an investment in good, union jobs for Illinois workers,” remarked IL AFL-CIO President Tim Drea. “Thank you, Governor Pritzker, for committing to growing our economy, putting workers first and ensuring that Illinois remains a center of workforce innovation.”
“Illinois is on the precipice of becoming a premier global hub for quantum technologies and the quantum campus development and research and development tools included in this bill only strengthen this effort,” said Jack Lavin, CEO of the Chicagoland Chamber of Commerce. “By extending the R&D tax credit, strengthening the REV Act, and enhancing the Film Tax Credit, and thanks to the leadership of Governor Pritzker, Illinois will continue to grow in these groundbreaking industries and be a leader in innovation driving economic growth and job creation across our region and the state.”
“The State of Illinois has taken bold steps to strengthen the region’s quantum technology ecosystem, amplifying our existing leadership and enabling it to scale at a commercial level,” said Kate Timmerman, CEO of the Chicago Quantum Exchange. “Governor Pritzker’s commitment to quantum and emerging tech has advanced the efforts of our universities, national labs, and startups, enhancing their ability to develop quantum technology solutions to pressing global issues while also creating jobs and driving inclusive economic growth.”
"Since its inception, Illinois' production incentive program has created thousands of high-quality, high-paying jobs, supported local businesses, and generated strong economic growth," said Charles Rivkin, Chairman and CEO of the Motion Picture Association (MPA). " Governor Pritzker has been a champion of the film, television, and streaming industry. By signing HB 5005 today, Illinois will continue to be a global leader in motion picture production.”
“The passage of House Bill 5005 demonstrates how the General Assembly, along with Governor Pritzker and his team at DCEO, are committed to economic development in Illinois,” said Ken Springer, Chairman of the Illinois Economic Development Association (IEDA). “This legislation truly speaks to the needs and feedback of our members as well as the business community, and the Illinois Economic Development Association is proud to support the expansion tools available in this legislation, which will help our communities grow and thrive.”
“This legislation will add exciting momentum to Illinois’ impressive growth in emerging and new technologies,” said P33 CEO Brad Henderson.
“With this investment in our state’s economy, we can continue our leadership in emerging industries and show the country that Illinois is a great place to do business,” said Senate President Don Harmon. “I thank Senator Stadelman and Governor Pritzker for passing this legislation and continuing to champion Illinois.”
“Illinois continues to solidify its position as the leader of quantum development and technologies,” said House Speaker Emanuel “Chris” Welch. “This legislation allows us to provide strategic investment into a burgeoning field and 21st century jobs, while also funding critical research and development that puts Illinois on the fast track to becoming one of the nation’s largest quantum economies.”
“Illinois succeeds when we responsibly invest in emerging industries that spark economic development, support jobs and strengthen communities for years to come,” said Rep. Dave Vella (D-Rockford). “From quantum computing to clean energy, this measure positions Illinois to take advantage of new investments that will drive our country’s 21st century economy.”
“This law underscores our commitment to fostering innovation and sustainable growth in technology and clean energy manufacturing,” said Senator Steve Stadelman (D-Rockford). “This will not only stimulate economic development but also pave the way for a more prosperous and environmentally conscious future for our state.”
“Moline and the Illinois Quad Cities are thrilled to be able to utilize the RERZ to continue and enhance our efforts to reach our full potential as a thriving Metro area,” said Moline Mayor Sangeetha Rayapati. “As border communities, it is wonderful to now have this tool to attract new business and development.”
“As technology evolves, it’s important our policies do the same to maintain our state’s competitiveness and economic strength. The legislation signed today by Governor Pritzker will invest in manufacturing and supply chains, keeping Illinois at the forefront of electric vehicle development while also strengthening incentives for semiconductor and microchip manufacturers, allowing for important advances in quantum computing research that can help solve some our society’s most pressing challenges,” said Mark Denzler, President and CEO of the Illinois Manufacturers’ Association. “We are especially proud that an extension of the Research & Development tax credit is included in this measure. Research and development are central to the success of our state’s manufacturing sector, with manufacturers constantly creating new products and improving existing ones.
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