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2025 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 However, Illinois’ R&D credit is outdated and expires without state intervention.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 makes the R&D credit permanent moving forward, ensuring predictability and reliability for those wishing to engage in and grow R&D in the state of Illinois.

Biometric Information Privacy Act (BIPA) Retroactivity

The IMA, in addition to numerous other business groups, have long sought 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. Last year, following the supreme court ruling in Cothron v. White Castle, the Illinois General Assembly passed, and the Governor signed legislation that clarifies that each individual BIPA violation should not be considered a separate violation. Unfortunately, the law only applies to businesses moving forward. The IMA is seeking to make the recent changes to BIPA retroactive, helping hundreds of businesses that have been burdeden by countless frivolous lawsuits.

Nuclear Energy

In addition to seeking changes to the state’s self-direct program and the regulation of combined heat-power facilities, the IMA is seeking to prevent an energy shortfall by allowing for further development of nuclear energy in the state. In Illinois there are eleven operating nuclear power reactors at six sites, generating about 50 percent of the state's electricity, proving the importance of nuclear energy to Illinois. As fossil fuel plants continue to retire and more strain is being put on our electrical grid, we must open the door to the possibility of more nuclear development in the state.

Self-Direct and Combined Heat-Power Reform

The IMA is seeking changes to the Climate and Equity Jobs Act (CEJA) with several tweaks that include separating combined heat-power facilities from traditional base load generation and streamlining streamline the self-direct program for large energy users (10MW or more) so that they get full credit for their efforts to use RECs. This legislation is critically important to the nation’s manufacturing sector that uses one-third of all energy consumed in the United States. Since the passage of CEJA, fossil fuel plants are retiring much faster than renewable sources are being developed, leading to critical “imbalances” that grid operators, such as PJM Interconnection, threatens could led to 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. The underlying premise of environmental equity is widely supported by manufactures and the IMA. In fact, EJ is an issue that should be bringing manufacturers and the communities in which they reside, closer together. Often times manufacturers have a deep-rooted connections to the community in which they are established and are the lifeblood for those who call those communities home. In order to ensure that manufacturers connect with their communities, the IMA, in coordination with the Illinois Chamber, Chicagoland Chamber, Illinois Environmental Regulatory Group and Illinois Farm Bureau are bringing EJ regulations forward that will bring communities closer together with businesses while not being overburdensome for manufacturers.

Sales Tax on Natural Gas

This IMA initiative seeks to eliminate the sales tax on economic development by repealing the sales tax on natural gas used by Illinois manufacturers.

Natural Gas Local Referendum

Natural gas is critical to both manufacturers and residents alike. In order to give the people of Illinois a voice, this IMA initiative prevents municipalities or counties in the state from implementing a ban on natural gas without first holding a voter referendum on the topic, ensuring decisions on natural gas are made by those that are impacted the most.

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.

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 pass into law as part of the CARES Act, will help those with student loan debt while also acting as a tool to attract employees to manufacturers.

Estate Tax Phase Out

Illinois is one of only a handful of states to implement an estate tax. Estate taxes are paid by the decedent’s estate before assets are distributed to heirs. As manufacturing companies often transcend through generations of one family, the IMA is proposing a 5-year phase out of the tax with a 20% reduction each year until the tax is gone.

Affordable Housing Tax Credit

Illinois is among the nation’s leaders in its growing housing crisis, with a shortage of nearly 300,000 affordable rental homes for those most in need. Our affordable housing deficit has negative implications for the growth and retention of businesses throughout the state. The IMA is partnering with the Illinois Housing Council to present the Build Illinois Homes State Tax Credit, a proven legislative solution to meet the growing demand for affordable housing. The tax includes 5 funding rounds (with a 5-year sunset date). The program has no fiscal impact on the Fiscal Year 2026 budget as the tax credits are not claimed until an affordable housing development is completed and leased to eligible tenants, the fiscal impact is estimated to start in 2028.

IMA Education Foundation Legislative Agenda

Manufacturer Child Care Incentive Pilot Program

This IMA Education Foundation 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.

State Stipends for Manufacturing Employees who Teach

In an effort to help to school districts hire career and technical education teachers, the IMA Education Foundation is seeking to provide a financial incentive through stipends from ISBE, subject to appropriation, for a manufacturing employee, in the amount of one-half of the salary of the employee, that is employed by a manufacturing company and working within a school district as a license career and technical education teacher.

Regional Manufacturing Technical Assistance Programs

This IMA Education Foundation 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.

State Stipends for Teacher Externships

The IMA Education Foundation is seeking to provide incentives for teachers and employers to provide work-based learning experiences by requiring ISBE, subject to appropriation, to provide stipends for teachers who participate in externships with a manufacturing company in this State. The externships experience is designed to give teachers the opportunity to spend time outside of the classroom and in manufacturing facilities.

Manufacturing Promise Scholarship Program

Similar to the MAP grant program, this IMA Education Foundation 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

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