Illinois manufacturers would qualify for tax credits on capital spending

Manufacturers would qualify for income tax credits based on their manufacturing capital spending. Businesses classified as manufacturers under North American Industry Classification System codes 31–33 would qualify. The Department of Commerce and Economic Opportunity would determine which investment areas qualify for the higher rate and cap. Eligible tax years would begin on or after January 1, 2026, and before January 1, 2036. The act would take effect upon becoming law.

Manufacturers could use the credit only to reduce taxes owed for the same tax year. These limits would apply to every taxpayer claiming the manufacturing credit. Taxpayers could not claim another credit against the same income taxes for the same capital spending. Unused credits could not be applied to earlier or later tax years.