2024 Legislative Agenda
Make Permanent & Modernize the R&D Tax Credit
Research and Development (R&D) is the lifeblood of manufacturers who are constantly creating and improving products. However, Illinois’ R&D credit is outdated and expires without state intervention. This IMA initiative increases the R&D credit by providing that the increase in research and development activities shall be based on an increase over 50% of the average of the qualifying expenditures for each year in the base period. Currently, the credit is based on an increase of over 100 percent of the average of the qualifying expenditures for each year in the base period. This change modernizes the bill to match changes to the R&D credit at the federal level. Additionally, the bill makes the R&D credit permanent moving forward. Recently, the IMA met with Governor Pritzker on several issues, and he expressed interest in this initiative.
Biometric Information Privacy Act (BIPA) Reform
The IMA is working with a dozen other business groups, including the Chicagoland Chamber, State Chamber, Illinois Retail Merchant's Association, hotels, hospitals and more, on this group initiative that seeks to overhaul the state's antiquated Illinois' Biometric Information Privacy Act (BIPA). BIPA is being constantly misused in the courts to extort businesses for financial gain. This proposal will provide needed exemptions to the law for employers using biometrics for security purposes, will allow for electronic signatures and fixing the Cothron v. White Castle case that made each violation a separate violation punishable by a fine up to $5,000, to name a few.
Energy Reform (CHP, Self Direct)
The IMA is seeking changes to the Climate and Equity Jobs Act with several changes including separating combined heat-power facilities from traditional base load generation. CHP plants which are specialized facilities should not be forced to close on the same schedule as base load generation. Secondly, the legislation aims to streamline the self-direct program for large energy users (10MW or more) so that they get full credit for their efforts to use RECs. Also being considered is Right of First Refusal (ROFR) language that would expedite the construction of infrastructure to spread power across the state.
This legislation is critically important to the nation’s manufacturing sector that uses one-third of all energy consumed in the United States. Recently, PJM Interconnection, one of the nation’s largest grid operators, reported its supply and demand forecast through 2030 across thirteen states with 65 million people. The report noted that fossil fuel plants are retiring much faster than renewable sources are being developed leading to “imbalances” which means a potential for shortages and brownouts.
Environmental Justice
Environmental justice (EJ) continues to be one of the most important environmental-related issues manufacturers are facing today. Many states across the country, including Illinois, have sought further environmental regulations on businesses and industry in the name of environmental protection and equity for all.
The IMA has spent over a year working with a small coalition of business groups, including the IMA, State Chamber of Commerce, Chicagoland Chamber of Commerce, IERG and Illinois Farm Bureau, on this initiative that establishes common sense regulations for manufacturing facilities in EJ areas. This initiative shifts current Illinois EPA policies into law by defining an EJ area, applying new modeling and analysis requirements on certain limited permits in EJ areas, establishing what permits the regulations would apply to, and allowing for grievances to the Illinois EPA’s decision on permits in an EJ area, which is standard for other areas on the Environmental Protection Act. This initiative clearly shows that industry takes EJ seriously and it stands as a stark contrast to proposals that have been previously filed that contain onerous regulations and egregious permitting requirements.
Student Loan Employer Tax Credit
This initiative is an attempt to help with two issues: student loan debt for employees and workforce shortages. This initiative would provide employers with a tax credit if they were to help employees by paying their student loan debt. This proposal, modeled off the federal Employer Participation in Repayment Act which was passed into law as part of the CARES Act, will help those with student debt while also acting as a tool to attract employees to manufacturers.
Sales Tax on Natural Gas
This IMA initiative would eliminate the state sales tax on natural gas and electricity to promote additional economic development by manufacturers. Since the Climate and Equity Jobs Act was enacted two years ago, energy costs have skyrocketed throughout much of Illinois, leading to higher energy costs for consumers and businesses.
Capital Investment Credit
This IMA initiative creates an income tax credit in an amount equal to 10% of the manufacturing capital expenditures incurred by the taxpayer during the taxable year, or 15% of the manufacturing capital expenditures if the taxpayer is in a rural or economically challenged area. The initiative goes on to provide that the total amount of credits awarded under those provisions may not exceed $10,000,000 for any particular taxpayer in any taxable year, except that, if the capital investment is made in a rural or economically challenged area, then the maximum amount of the credit shall be $20,000,000.
Carbon Capture & Sequestration (CCS)
The IMA will continue this spring to champion legislation that establishes regulations for land issues, permitting, liability and fees surrounding CCS. The State of Illinois is primed to be a leader in CCS and can capture competitive federal dollars and grow our economy if we make the right legislative choices on this important issue, however, as more time passes without action in Illinois, other states are taking advantage of CCS, both environmentally and economically. Common sense regulations are needed to allow for a pathway to growth for CCS.
IMA Education Foundation Legislative Agenda
Regional Manufacturing Technical Assistance Programs
This IMA initiative will require the Department of Commerce and Economic Opportunity (DCEO) to develop a statewide program that provides technical assistance in support of regional manufacturing partnerships that include secondary, postsecondary, and workforce stakeholders. The technical assistance program will provide support for such things as curriculum review to ensure that it is aligned with regional employer needs as well as strategies around employer engagement.
High School Graduation Requirements
The IMA Education Foundation is seeking to change the high school graduation requirements to allow for 2-years of CTE courses in place of the 2-year foreign language requirement. This will allow for critical education that more closely meets the needs of students.
Manufacturer Child Care Incentive Pilot Program
This IMA initiative consists of a pilot program that will allow 10 manufacturers to open on-site, employee-only child care centers at no cost to their employees. The employer is required to follow staffing, medication, background checks and liability insurance requirements but there is an expedited approval process.
Childcare Funding
The IMA is seeking to bring grant dollars/incentives to employers who open child care centers in designated child care deserts.
Illinois Manufacturing Workforce Ecosystem
This initiative is a collaboration between the Illinois Community College Presidents Association and the IMA. This initiative will create an ecosystem that will provide flexible methods, curricula, and schedules to meet industry standards and the specific requirements of Illinois manufacturers. IMWE will offer entry-level and advanced certifications for both newcomers to manufacturing and incumbent workers.
Manufacturing Promise Scholarship Program
Similar to the MAP grant program, this IMA initiative provides that any high school student is entitled to free community college education if they are enrolled in a manufacturing pathway. This is not a tuition waiver and will require 20% of participants to represent underrepresented groups. Community college manufacturing programs as well as apprenticeship and union manufacturing programs quality under this program.
IMA's Growth Agenda
Establish a strong manufacturing climate in Illinois
- Fight for a balanced budget and true pension reform
- Enact real and meaningful reforms to the Workers’ Compensation system
- Ensure a level playing field in the court system with fair, common sense reforms
- Modernize and invest in world class infrastructure that moves people and products
- Reduce health care costs for both patients and providers
- Eliminate regulations that increase costs and reduce employer flexibility
- Create a fair Unemployment Insurance system
Develop a tax system that promotes manufacturing
- Create a modern and permanent Research & Development incentive
- Eliminate the state’s sales tax on electricity and natural gas
- Preserve a low and flat income tax system
- Incent the location of manufacturing machinery and equipment in the state
- Maintain the confidentiality of private tax records
Champion strong energy policies
- Embrace an “all of the above” approach to energy production
- Grow hydraulic fracturing in southern Illinois
- Streamline permitting processes at the EPA
- Promote self-directing programs that increase efficiency and reduce energy usage
- Oppose overly burdensome EPA regulations that disadvantage manufacturing
Create a 21st Century Workforce
- Establish a pipeline of qualified workers
- Lead STEM (Science, Technology, Engineering & Math) Exchange for Manufacturing
- Implement stackable credential programs in community colleges
- Administer job training programs
- Support initiatives to transition U.S. veterans and military personnel into manufacturing jobs
