Advocates making Research & Development Tax Credit Permanent
Springfield, IL ... State Representative Mike Unes (R-East Peoria) led the charge on Thursday to make the Illinois Research & Development Tax Credit permanent, ending the unnecessarily turbulent past of this important job creation credit.
HB 395, Unes’ bill to make the Research & Development Tax Credit permanent, was the subject matter of a hearing in the House Revenue & Finance Committee on Thursday morning. The R&D Tax Credit was created in Illinois in 1990 with the purpose of increasing research and development in the state. Since that time it has expired and been later renewed several times. The credit is set to expire again in 2015. Making the credit permanent will provide predictability for high tech businesses.
“Our state has many wonderful high-tech and specialized manufacturing businesses. What these companies need now is certainty. Caterpillar invested over $2 billion in 2014 in R&D, much of it done at the Mossville Tech Center. However, there is no certainty or predictability for this credit. Renewing this permanently will provide the predictability needed,” said Rep. Unes before the Committee. “An attractive and stable R&D tax credit will retain and create high-paid jobs in Illinois.”
Illinois Manufacturers’ Association Director Mark Denzler testified in support of the credit, saying, “R&D is the lifeblood of manufacturing. Average salaries in manufacturing are about $64,000/ year, but R&D jobs average a salary of around $94,000/year. This is vastly important to the manufacturing sector.”
“It is critical to Illinois businesses to provide permanence to the R&D Tax Credit,” testified Keith Staats on behalf of the Illinois Chamber of Commerce Tax Institute. He went on to say that the turbulent nature of this credit, “enters into the decisions of businesses. We have fallen to the back of the pack by not modernizing this credit.”
Rep. Unes has been a consistent advocate of making the Research & Development Tax Credit permanent. “It’s as simple as this- this credit is a job-creator and retainer for our state,” summarized Rep. Unes. If not renewed or made permanent, the R&D Tax Credit is scheduled to expire at the end of 2015.
For more information on this or any other state issues, contact Rep. Unes’ Pekin District Office at 309-620-8631.