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Tax Credits & Incentives

Numerous programs are available that can provide grants and tax credits for job creation, training, and hiring disadvantaged individuals on a local, regional, state, and federal level.

Apprenticeship Credits

Effective January 1, 2020, employers are allowed a tax credit for qualified educational expenses associated with qualifying apprentices. Employers may receive a tax credit of up to $3,500 per apprentice against the taxes imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act, and an additional credit of up to $1,500 for each apprentice if (1) the apprentice resides in an underserved area or (2) the employer's principal place of business is located in an underserved area. 

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NOTE: The total tax credits issued by the Department under this program may not exceed $5 million in any calendar year, which shall be allowed on a first-come, first-served basis, based on the date on which each properly completed application is received by the department.

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BCJA Tax Credit Program

The Blue Collar Jobs Act (BJCA) program supports large-scale economic development activities 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, a company must be located in an Enterprise Zone (EZ) or a River Edge Redevelopment Zone (RERZ), designated a High Impact Business (HIB), or have an agreement under the Economic Development for a Growing Economy (EDGE) Program. Eligible companies may receive up to 75 percent income tax withholding credits for construction workers. Additional eligibility information can be found on the Illinois Department of Commerce & Economic Opportunity website.

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EDGE Program

Illinois' Economic Development for a Growing Economy (EDGE) Tax Credit Program provides annual corporate tax credits to qualifying businesses which support job creation and capital investment and improve the standard of living for all Illinois residents. The non-refundable income tax credit is equal to 50% of the income tax withholdings of new jobs created in the state. This percentage increases to 75% if the business expansion project is located in an "underserved area" census tract and meets one of four qualification tests. 

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Additional eligibility information and FAQs can be found on the Illinois Department of Commerce & Economic Opportunity website.

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Fidelity Bonding

Fidelity Bonding is a business insurance policy that protects employers against employee dishonesty, theft, or embezzlement. It is a no-cost insurance coverage from $5,000 to $25,000 that enables employers to hire job applicants considered to be "at risk" due to their past life experiences. 

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You can learn more about Fidelity Bonds as well as various incentives and credits associated with hiring justice-impacted individuals by exploring the Illinois Department of Employment Security website or by connecting with Goodwill of Peoria or the Tri-County Urban League to learn about managed programs and upcoming workshops.

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Greater Peoria EDC

The Greater Peoria Economic Development Council (GPEDC) develops and executes specific programs to advance the regional goals of strengthening economic diversity and resilience. The GPEDC delivers value to the region through a multifaceted approach to regional collaboration and support. Our team stays up to date on many local, regional, statewide, and federal grant opportunities. Explore the GPEDC site today to learn more about our many exciting programs tailored to help your business grow and succeed: 

  • Business Assistance

  • Business Attraction

  • Workforce Solutions

  • Innovation & Startups

  • Rural Development & Outreach

  • Greater Peoria Manufacturing Network

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Veteran Hiring Incentives

The State of Illinois has a broad portfolio of tax credit programs to help accelerate the growth of new and existing businesses across the state. These programs are open to all eligible businesses in Illinois (not exclusively businesses owned by veterans:

  • Illinois Angel Investment Program

  • Small Business Jobs Creation Tax Credit Program

  • R&D Tax Credit

  • Work Opportunity Tax Credit (WOTC)

  • Veteran's Tax Credit

  • EDGE Tax Credit

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Visit the Illinois Department of Veterans Affairs website to learn more about these incentives and other great programs in Illinois that promote employment and business opportunities for veterans.

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WOTC Program

The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers who hire and retain veterans and/or individuals from other target groups with significant barriers to employment. Employers claim about $1 billion in tax credits yearly under the WOTC program. WOTC can be claimed for the following workers: 

  • Veterans

  • Temporary Assistance for Needy Families (TANF) Recipients

  • SNAP Program Recipients

  • Designated Community Residents (living in Empowerment Zones or Rural Renewal Counties)

  • Vocational Rehabilitation Referrals

  • Ex-Felons

  • Supplemental Security Income (SSI) Recipients

  • Summer Youth Employees (living in Empowerment Zones)

  • Long Term Unemployed (LTUR)

 

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