The Department of Commerce and Economic Opportunity (DCEO) has recently launched another program, the Blue Collar Jobs Act (BCJA) Tax Credit, to promote economic growth by incentivizing construction projects in Illinois by providing corporate income tax credits to companies that make substantial capital investments in Illinois. The tax credits are based on the wages paid to construction workers employed on eligible projects. To be eligible, the project must be in an enterprise zone (EZ) or a River Edge Redevelopment Zone (RERZ), or the company making the investment is designated a High Impact Business (HIB) or have an agreement under the Economic Development for a Growing Economy (EDGE) Program.
Eligible companies can receive tax credits equal to 75 percent of the income tax attributable to construction workers on eligible projects located in an underserved area, or 50 percent for projects located in other areas. The BCJA is designed to further incentivize major capital investments in communities across Illinois and create good-paying construction jobs.
Project eligibility varies based on projects affiliation with the above-mentioned programs (EZ, RERZ, HIB, or EDGE) and more specific details can be found on DECO’s website. Companies that completed construction projects in 2021 (the effective date of the legislation) or later are eligible to apply for credits. Please note there are $20 million in tax credits available per year for eligible companies.
Please also note that a large area of Freeport is within the Northwest Illinois Enterprise Zone and is deemed an underserved area.
DCEO will host a technical assistance webinar to share details regarding the BCJA program application and processes on Monday, June 26, 2023, from 1 – 2 pm. Click here to sign up and RSVP; companies looking for information are encouraged to email firstname.lastname@example.org or visit the BCJA website.