Blue Collar Jobs Act Construction Tax Credits for Illinois Businesses

Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) today announced the launch of the Blue Collar Jobs Act (BCJA) Tax Credit application for eligible companies. BCJA is a bipartisan legislative package designed to promote economic expansion and growth in Illinois by incentivizing construction projects. The legislation makes $20 million in tax credits available per year for eligible companies.

The BCJA amended legislation for Illinois’ premier incentive programs to provide tax credits attributable to the wages paid to construction workers on eligible projects. Eligible companies include those who are located in an Enterprise Zone (EZ) or a River Edge Redevelopment Zone (RERZ), companies designated a High Impact Business (HIB), or companies with an agreement under the Economic Development for a Growing Economy (EDGE) Program. Companies that completed construction projects in 2021 (the effective date of the legislation) or later are eligible to apply for credits.

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.

Providing tax incentives specifically for construction projects supports job creation and additional investments in communities. DCEO currently leverages this innovative tax credit structure for construction jobs as part of the Reimagining Energy and Vehicles (REV) and Manufacturing Illinois Chips for Real Opportunity Act (MICRO) tax credit programs.

DCEO will host a technical assistance webinar to share details regarding the BCJA program application and processes on Monday, June 26, 2023, from 1 p.m. – 2 p.m. Click here to sign up and RSVP; companies looking for information are encouraged to email ceo.bcja@illinois.gov or visit the BCJA website.

SSBCI Funding to Support Small Businesses

The U.S. Department of the Treasury announced that Illinois will receive up to $354.6 million to administer four programs as part of the State Small Business Credit Initiative (SSBCI). The expanded program offering through SSBCI will enable Illinois to support small businesses across the state - helping them attract more capital investment and expand or launch business operations, while supporting key sectors. All of the new programs will launch in the coming months.

• Advantage Illinois (AI) Loan Participation Program (Existing Program)
• Advantage Illinois' existing Loan Participation Program provides low-interest loans to small businesses by partnering with local lenders located across the state. In 2022 as of December, 71 percent of AI loans have gone to businesses owned by people of color, women, people with disabilities or veterans.

• Advantage Illinois (AI) Loan Guarantee Program (New Program)
• Advantage Illinois' new Loan Guarantee Program will support business applicants who are having difficulty gaining access to capital by using funds to guarantee a percentage of loans provided by partner lenders. By guaranteeing a percentage of the loan, it makes loans more attractive to lenders and has the potential to increase the funds received by the businesses.

• INVENT Venture Capital Program (VCP) (New Program)
• Innovation Venture Fund (INVENT) will operate as a direct equity program with a focus on investing in businesses in key industries such as agriculture, ag tech, information technology, life sciences, manufacturing, quantum, and more.

• Climate Bank Finance Loan Participation Program (New Program)
• This new program will be overseen by DCEO and administered by the Illinois Finance Authority (IFA), which will partner with local lenders to issue the loans. Climate Bank funds will be available to small businesses in the clean energy sector.

The programs will launch in the near future; interested businesses should fill out this form to receive additional information and updates when the programs are launched.