“Blue Collar Jobs Act” Construction Tax Credits Now Available: Incentives Provide Up to 75% for Eligible Companies

State Representative C.D. Davidsmeyer (R-Jacksonville) is happy to announce that bi-partisan legislation he co-sponsored in the 101st General Assembly (HB 3373) is finally being implemented by the Governor and the Illinois Department of Commerce and Economic Opportunity (DCEO). The “Blue Collar Jobs Act” (BCJA) makes $20 million in tax credits available per year for eligible companies and will support job creation in Illinois.

“I was happy to see this tax credit to support business investment and growth in the State of Illinois!” Davidsmeyer commented, “this was part of an agreement made back in 2019 that is finally coming to fruition.”

The BCJA provides tax credits attributable to the wages paid to construction workers on eligible projects. Eligible companies include those who are located in an Enterprise Zone (EZ) or a River Edge Redevelopment Zone (RERZ), companies designated a High Impact Business (HIB), or companies with an agreement under the Economic Development for a Growing Economy (EDGE) Program. Companies that completed construction projects in 2021 (the effective date of the legislation) or later are eligible to apply for credits.

Eligible companies can receive tax credits equal to 75 percent of the income tax attributable to construction workers on eligible projects located in an underserved area, or 50 percent for projects located in other areas of Illinois. An “underserved area” is one which meets one of the following four tests:

  • Poverty rate of at least 20%; or
  • 35% or more of the families with children in the area are living below 130% of the poverty line, according to the latest American Community Survey; or
  • At least 20% of the households in the area receive assistance under the Supplemental Nutrition Assistance Program (SNAP); or
  • Average unemployment rate that is more than 120% of the national unemployment average, for a period of at least two (2) consecutive calendar years preceding the date of the application.

DCEO will host a technical assistance webinar to share details regarding the BCJA program application and processes on Monday, June 26, 2023, from 1 p.m. – 2 p.m. Click here to sign up and RSVP; companies looking for information are encouraged to email ceo.bcja@illinois.gov or visit the BCJA website.

“Business growth is important to the future of Illinois and all of its people,” added Rep. Davidsmeyer. “It is my hope that the Governor will fulfill all of the agreements we have made since 2019.”