Ill. lawmakers pass new tax incentives plan
SPRINGFIELD, Ill. (KFVS) - Illinois lawmakers passed a new plan on Thursday night that would create new tax incentives for more electric vehicle manufacturers to come to the state.
The Reimagining Electric Vehicles, or REV, Act could create tax credits for manufacturers of EVs, parts, and even power supplies.
Sen. Steve Stadelman said this plan can boost economic opportunity across the state by bringing new jobs for residents and making a lasting impact on their communities.
“Automakers are making some huge transitions to electric vehicles over the next few years,” Stadelman said.
“But a lot of their decisions as far as where they’re gonna locate and whether to retool existing plants will be made over the next six months or so.”
Small and large manufacturers could benefit
Automakers and battery manufacturers could receive large income tax credits if they can guarantee a significant number of new jobs.
“There are certain thresholds that they’re going to have to make and come up with as far as employees, as far as investment dollars, before the state is going to be able to ante up with them,” said Rep. Dan Brady
Companies could also receive tax incentives for expanding their business in Illinois.
Sponsors hope small and large manufacturers can benefit from the new plan.
The proposal passed out of both chambers with bipartisan support and now heads to the governor’s desk.
Green auto parts made in Illinois
Deputy Governor Andy Manar told the Senate Executive Committee that the administration cares about where electric auto parts will be built.
“Where are cathodes going to be built? Where are anodes going to be built, where are compressors going to be built? We believe, and the governor believes, that these things can be built in Illinois,” Manar said.
Illinois Sierra Club Director Jack Darin noted new workers could come from clean energy workforce hubs.
The hubs were a critical part of the Clean Energy Jobs Act.
“Sites that are losing coal plants and coal mines are going to be prioritized for this kind of development as well,” Darin said.
“So, there’s a lot to build on what we’re already doing in the renewable energy sector in this particular climate solution sector.”
The Illinois Manufacturers’ Association also helped get the bill across the finish line.
Republicans hope Pritzker stays true to his word
Many Republicans supported the proposal, but they also had reservations about Pritzker’s dedication to the package.
Several members in both chambers noted the governor characterized several popular business tax incentives as “corporate tax loopholes.”
House Republican Leader Jim Durkin said Republicans made Pritzker look good when they helped craft and supported the capital spending bill in 2019.
The administration told Republicans they couldn’t afford those tax credits two years later.
Durkin felt that was a bite back at his party because of their campaign to kill Pritzker’s graduated income tax proposal.
“It’s good to see that the governor is actually pro-business. I haven’t seen this in quite a time,” Durkin said.
“I feel like I’m in the Twilight Zone and Rod Sterling is going to walk out of the door in the gallery. But I hope that this is a sign of things to come.”
The Illinois Chamber of Commerce also raised concerns over the plan’s inclusion of a labor neutrality provision.
Democrats wanted to ensure new autoworkers could have the ability to unionize without retaliation from groups receiving the tax credits.
Pritzker will likely sign the bill into law quickly to put Illinois on the radar for more auto manufacturers.
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