SPRINGFIELD, Ill. (WTVO) — Included in the 2023 Illinois Budget is the “Manufacturing Illinois Chips for Real Opportunity,” or Micro Act.
It provides various tax incentives for high-tech manufacturers of semiconductors, microchips and their component parts, and is designed to attract chip manufacturing plants to Illinois to help ease supply pressures.
“Now more than ever it’s critical we invest in American manufacturing to prevent over-reliance on producers abroad. This is particularly true for specialized technological components like semiconductors and microchips, which are used in thousands of everyday products,” said Mark Denzler, president & CEO of the Illinois Manufacturers’ Association. “Because of our state’s highly educated workforce, access to energy and water, and centralized distribution location, Illinois is uniquely positioned to host the manufacturing of these important products. We thank the governor and lawmakers for their bipartisan support of this legislation, especially sponsors Sen. Suzy Glowiak Hilton, Rep. Michael Halpin and Rep. Tim Butler, and look forward to bringing more critical manufacturing jobs to Illinois.”
Stellantis’ Belvidere Assembly Plant has gone on several shutdowns in past months due to the chip shortage. The new law will provide qualifying manufacturers with an enhanced version of the Edge Tax incentive over 15 years. Employers would also receive a tax break on 75% of income tax withholdings attributable to new employees, which would increase to 100% if the production facility is located in an underserved area.
April 19, 2022 at 05:19PM