Urge Madigan and Democrats to pass provisions of HB3811
House Republican Leader Tom Cross and his caucus are demanding that lawmakers and the Governor take a broader based approach to job creation in Illinois—pass and sign into law the provisions of House Bill 3811 during the second week of Veto Session (Nov. 8-10).
“The ideas in this bill will create jobs in all areas of the state from large to small corporations, startup businesses to family farms,” said Cross. “Some of the ideas being tossed around in Springfield are too narrow and help just one or two businesses in the state. We need a broader based approach to job creation in Illinois to at least put us on par with our neighboring states.”
“We filed this bill at the beginning of this month and talked with businesses and family farmers around the state about the merits of the bill. From Peoria to Decatur to the Quad Cities, business owners favor the broader based approach,” said Rep. David Leitch (R-Peoria), House Republican Deputy Leader.
“The Democrats’ corporate tax hike passed in January is literally killing jobs in our state with our unemployment rate climbing to ten percent. We are in favor of rolling that back—however the Democrats have not shown a willingness to do so,” added Rep. Tim Schmitz, House Republican Deputy Leader. “The items contained in this package are things that both Democrat and Republican lawmakers have approved before—even including support from Governor Quinn.”
If signed into law, the House Republican Jobs Package would create tens of thousands of jobs in Illinois. For every percentage point drop in the unemployment rate, the state receives approximately $600 million in new revenue. Cross added that this package will more than pay for itself.
House Republican Jobs Package:
1. Re-enact the Illinois Research & Development tax credit.
Illinois businesses utilized this tax credit until it expired in December 2010. Its’ reinstatement would allow businesses that are doing legitimate research and development projects as defined in the law to qualify for a tax credit each year. Our proposal would also add ethanol and biodiesel research as qualified R & D activities.
2. Increase the estate tax exemption to $5 million.
Under the current law, when family farms are passed from generation to generation the heirs are hit with a huge estate tax if their assets are worth more than $2 million. Family farm assets are invested in land and equipment leaving limited available cash flow. Our proposal would raise the estate tax exemption to $5 million—which mirrors the federal tax code.
3. Re-instate the Net Operating Loss deduction.
Many businesses are losing money in this tough economy, this proposal allows them to use their net operating loss as a tax deduction extending the corporate carry forwards from 12 years to 20 years, and allowing a two year carry back.
4. Extend the life of existing Enterprise Zones by up to 20 years.
Most designated Enterprise Zones in Illinois are set to expire in the next ten years. Our proposal would allow current municipalities around the state to extend the enterprise zones in their communities to ensure tax incentives to businesses that have located or choose to locate in these underdeveloped areas.
5. Reduce the administrative costs and burdens involved with setting up and incorporating a Limited Liability Corporation in Illinois.
In Illinois even the cost to set up a business is much higher. We are proposing to reduce that fee from $750 to $100. The highest fee that any of our surrounding states currently charges is in Wisconsin at $130.
The package is supported by a broad range of businesses and groups including the National Federation of Independent Business and the Illinois Chamber of Commerce.