Independent Illinois grocers and pharmacies could claim approved credits from 2028

Approved businesses could use credits to reduce state income taxes or payments of taxes withheld from workers' pay. Each applicant, its owners, and related businesses together could own no more than four stores of that type and employ no more than 500 people. Projects would need state approval and at least $500,000 in property or equipment investments; grocers with more than 15 employees would need $1 million. Stores could earn no more than 30% of revenue from tobacco and alcohol. Grocers would need to sell fresh produce and accept SNAP and WIC food benefits. Businesses would need to meet their agreements' job, payroll, and investment goals. Closing or shrinking an Illinois location to move the same operation elsewhere in Illinois generally would not qualify. The state could approve a move needed for expansion that cannot reasonably fit within the original municipality or, for an unincorporated location, county. Credits would apply to tax years beginning on or after January 1, 2028.

The state could award business tax breaks through pharmacy and grocery tax-credit agreements without requiring a separate application. This route would cover pharmacies and grocery stores with approved agreements under the pharmacy and grocery tax-credit program. The agreement would need to include the terms for High Impact Business status. Utility and income-tax breaks would require the store to be operating. These tax breaks could continue after the tax-credit agreement ends if the agreement states how long they would last.

The state could award equipment grants to government-run grocery stores and reimburse checkout systems that accept SNAP and WIC food benefits. The checkout-system option would also cover existing independent for-profit, cooperative, and nonprofit grocery stores, plus farmer-owned grocery stores or markets. Lawmakers would need to set aside money for the grants. Equipment grants would focus on energy-efficient equipment and could use no more than 20% of total program funding. These grant provisions would take effect when the bill becomes law.