On Tuesday, State Representative Lindsay Parkhurst (R – Kankakee) sponsored legislation to stimulate construction projects in the State of Illinois and create jobs for the middle class. The legislation, HB 3373, is the Blue Collar Jobs Act.
“With this bill, we are sending a message to companies around the country Illinois is open for business,” Rep. Parkhurst said. “Nothing helps the middle class more than well-paying jobs which this bill is designed to create.”
Both labor and business groups support The Blue Collar Jobs Act and it offers tax incentives to companies making significant capital improvements in Illinois based on the withholding tax paid to construction workers through the creation of four new tax credits, including:
- High Impact Business construction jobs credit
- Enterprise Zone construction jobs credit
- New Construction EDGE Credit
- River Edge construction jobs credit
The tax credit is meant to incentivize the company to construct new buildings or improve existing buildings which cannot be built without the use of Illinois labor.
The tax credits only become available after the work is fully completed. There is no risk to the state for a company not meeting its requirement as the state has already captured the withholding tax prior to the tax credit being issued.
HB 3373 was introduced by Rep. Keith Wheeler (R – Oswego) on February 15th and is assigned to the House Revenue & Finance Committee.