From U.S. Newswire
CHICAGO, June 30 — Several Chicago-based organizations hailed Governor Blagojevich's signing today of the Business Location Efficiency Incentive Act (SB 2885). The new law makes Illinois the first state to intentionally use economic development subsidies to link jobs with public transit and/or affordable housing.
By modestly increasing the incentives available for such deals, the new law will encourage companies to make project site decisions that create more job opportunities for workers who cannot afford a car, avoid costly new infrastructure expenses, reduce sprawl, and promote more affordable housing.
The bill allows the Department of Commerce and Economic Opportunity (DCEO) to increase corporate income tax credits offered under Illinois's Economic Development for a Growing Economy (EDGE) program to companies that can prove a proposed project site is within easy reach of affordable workforce housing and/or public transit. For such "location efficient" sites, companies can receive up to 10 percent more EDGE tax credits than they would be otherwise eligible for (either a larger annual credit or a longer period).
In addition, companies seeking EDGE credits for projects at sites that do not initially qualify can receive additional credits if they submit an adequate site remediation plan. Plans can include measures like an employer-assisted housing plan, shuttle services, pre-tax transit cards, or carpooling assistance. The new law also increases the allowable EDGE incentive for business investment in high unemployment areas.
State legislator Kathleen Ryg (D-Vernon Hills) first introduced the bill in the 2004 legislative session with strong support from the prominent anti- sprawl business organization Chicago Metropolis 2020; Citizen Action/Illinois, a grassroots leader in promoting affordable and accessible public transit; and the Center for Neighborhood Technology (CNT), a nationally prominent resource center promoting sustainable urban development. Good Jobs First, a national organization promoting best practices in incentive use, first suggested the reform in a 1993 report.
Supporters of the bill soon included the employer-assisted housing proponent Metropolitan Planning Council; the Illinois Manufacturers' Association and home builders associations; unions, including the United Food and Commercial Workers, the Service Employees International Union and the Illinois AFL-CIO; and advocacy groups like the Illinois Housing Council and the Center for Tax and Budget Accountability.
State Senator Terry Link (D-Vernon Hills) re-introduced the bill with Representative Ryg earlier this year. The bill passed both Illinois houses by wide margins in April.
Good Jobs First Executive Director and former Chicagoan Greg LeRoy said his old home state made him proud. "Coordinating economic development subsidies with land use and transportation will make the state's economy more competitive. This law is good for workers who need more job access, for employers who need better labor market access, for taxpayers who favor efficiency, and for an environment with cleaner air."
Dr. Peter Haas, the lead researcher on several location efficiency studies co-sponsored by the Center for Neighborhood Technology (CNT), said that CNT's new Housing + Transportation Affordability Index (H+T Index) released yesterday will show the clear benefit of the state's location efficient business incentives to surrounding communities. "The Index will become an important tool in evaluating the effect of state projects on household transportation budgets. We can collectively keep more money in our pockets, in our communities and in our local businesses by investing public and private funds in a way that allows households to exercise travel choice in location efficient communities."
