(Chicago, IL) — June 24, 2010. Governor Pat Quinn yesterday signed legislation which extends a key research and development tax credit for Illinois businesses which secured plaudits from the Taxpayer’s Federation of Illinois.
“With this new law, we are encouraging more companies to invest in Illinois – and the Illinois worker – by creating an environment where innovation can grow and thrive,” said Quinn.
The legislation, Senate Bill 3655, which was sponsored by State Senator Dan Kotowski (D-Park Ridge) and House Majority Leader Barbara Flynn Currie (D-Chicago), extends the sunset of the Research and Development Tax Credit from December 31, 2009 to December 31, 2010. It provides a 6.5 percent credit on qualified research and development costs.
“Investments in the state’s research and development activities are critical to our ability to successfully meet the demands of a 21st century economy,” said Illinois Department of Commerce and Economic Opportunity Director Warren Ribley.
Thirty-eight states, including Illinois, currently provide some type of state R&D tax credit. The U.S. Bureau of Labor Statistics estimates that every dollar of tax benefit has spurred an additional dollar in private research and development.
According to the Battelle Memorial Institute, academic R&D in Illinois has experienced strong growth since 2004, increasing by 27.5 percent, placing Illinois above the national growth rate. Illinois also has one of the highest concentrations of research institutions in the country, including more than 440 corporate R&D facilities and more than 200 academic, government, and not-for-profit research institutions.
“We certainly appreciate Governor Quinn’s signature today on the extension of the Illinois’ Research and Development credit,” said Tom Johnson, President of the Taxpayers’ Federation of Illinois.
In addition to Kotowski and Currie, bill sponsors include State Senators Dan Rutherford, Deanna Demuzio, Emil Jones, III, Heather Steans, Mike Jacobs, A. J. Wilhelmi, Linda Holmes, John Sullivan, Toi Hutchinson, Jacqueline Collins, Terry Link, Ira Silverstein and State Rep. Bob Flider.
Illinois has created more jobs this year than any other state in the Midwest.