Springfield, IL… State Representative Margo McDermed (R-Mokena) has filed legislation to make the Research and Development tax credit permanent. The R&D tax credit expired in 2016 and has expired previously in 2004, 2009, and 2010.
“The unpredictability of the Research and Development Tax credit has negatively impacted its perception by businesses looking to expand in, or come to, Illinois” Rep. McDermed said. “The importance of this credit is evidenced by its renewal time and time again, but this is not an issue that can keep expiring and falling through the cracks. If utilized properly and made permanent it can be a real boon for the state’s economy.”
Business groups routinely acknowledge that the uncertainty of the tax credit limits its effectiveness. R&D decisions are often made with long term goals in mind. Business confidence in the political whims of the state to renew the credit undermine its strength in promoting the state as a place to do business.
“In an unstable political environment, businesses need all the stability and certainty they can get when making decisions about their future in Illinois,” McDermed said. “A permanent R&D credit would increase business confidence in the incentive and lead to greater investment in Illinois.”
House Bill 450 has been assigned to the Revenue and Finance committee.