A press release from State Rep. David McSweeney:
Rep. David McSweeney Proposes Legislation to Help Create Illinois Manufacturing Jobs
Springfield, Illinois—State Representative David McSweeney (R-Barrington Hills) hopes to help create manufacturing jobs in Illinois by exempting manufacturers from the state’s income tax.
“We need to have a strong manufacturing base to have a strong Illinois economy,” McSweeney said.
“We continue to lag in job creation and manufacturing companies are generally not considering Illinois as a top tier choice for expanding.
“Eliminating the income tax on manufacturers will create a strong incentive for manufacturing companies to consider locating to Illinois and it will encourage existing Illinois manufacturers to stay in Illinois and even expand their operations here.”
House Bill 4381 would allow existing and new manufacturing operations (corporations as well as LLCs and LPs) to fully deduct their net income, which essentially would exempt them from the state’s income tax.
For a manufacturer with $10 million of Illinois net income, HB 4381 would reduce that manufacturer’s tax liability by $525,000 ($10 million x 5.25% corporate tax rate).
While manufacturing jobs have increased in other states, Illinois continues to shed manufacturing jobs. From 2001-2015, Illinois manufacturing jobs have decreased by 38.9%.
“We have to get the Illinois economy moving again and reviving the manufacturing sector is an important step we need to take,” McSweeney said.
“The current policies are not working.
“Raising taxes has only served to drive middle class jobs away from Illinois.
“Let’s lower taxes and create incentives for manufacturers to invest in Illinois.”
Representative McSweeney has asked the Commission on Government Forecasting and Accountability (COGFA) to review the full revenue impact of HB 4381.
McSweeney said, “The best way to create new revenues for the state is to create new jobs and thus new taxpayers. I’m confident that my proposal will create new jobs.”
HB 4381 has been filed and is awaiting assignment to a legislative committee.