3,750 new manufacturing jobs backed by tax credits announced for Hyundai
(The Center Square) – Over recent months, Illinois has announced investments in manufacturing and other industries across the state and the creation of new jobs.
Those new investments come at a cost to taxpayers, at least on the front-end.
Earlier this week, Gov. J.B. Pritzker appeared in Joliet alongside public and private officials to announce that Hyundai Translead, which manufactures transportation equipment as a subsidiary of the Hyundai Motor Co., would increase its previously pledged investment in Will County.
“Last March, of course, we announced that Hyundai Translead, the leading trailer manufacturer in North America, was making a $470 million investment here and creating 2,475 jobs,” Pritzker said. “That investment has gone up to $600 million and 3,750 new jobs.”
Major investments like the Hyundai manufacturing’s don’t happen without a deal being reached however.
Illinois’ Department of Commerce and Economic Opportunity has been guided under Pritzker, with state funding, to work to attract corporations to come to and expand in the state.
The current state budget has $165 million set aside for infrastructure improvements, competing with other states for new capital projects and to financially assist those projects coming to Illinois sites.
Additionally, Hyundai Translead is part of the state’s EDGE tax credit program, which offers tax benefits in the form of a 50% of each employee salary as a tax credit or withholding.
The program’s tax incentives means a portion of the tax revenue brought in by the state from a major project could be halved for up to 15 years, depending on a company’s investment.
One part of the program less discussed is the requirement that a project would’ve not happened in Illinois if not for the tax credit.
Pritzker’s office touted that the EDGE program has led to the creation of about 6,000 jobs this year.
Another part of the Joliet manufacturing announcement was another state investment in the industry in the form of a new manufacturing training academy being added to the nearby Joliet Junior College.
The program is funded through the DCEO’s $20 million budget appropriation for grants to be given to local community colleges to develop workforce training partnerships with private companies.
Pritzker spoke to the impact and goal of the program.
“The state of Illinois has been intentional about our commitment to this work. We’re laying the foundation for sustainable growth by making historic investments in education, in infrastructure, and our workforce development,” Pritzker said. “That partnership is going to strengthen the regional talent pipeline by providing training opportunities for those who are looking to enter advanced manufacturing.”
Pritzker also said the Hyundai investment was the largest single job creation in the state’s recent history, which he said is because of his administration’s efforts to attract capital.
“We’re doing our best to make sure that we’re competitive with states like Texas and South Carolina, Michigan, and others that have a good economic development program. Illinois didn’t have one when I got into office, we really had fallen behind,” Pritzker said.
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