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Corporate Accountability Often it is important for a state to use taxpayer dollars to lure jobs and business investment. These “tax expenditures” are tax breaks given to private business to promote economic development. A crucial aspect to ensuring tax expenditure accountability is disclosure of the key elements of the tax breaks. This includes identifying publicly both the dollar amount of the tax breaks given, as well as the promised economic development. Illinois currently spends nearly $1 billion annually on tax expenditures.
The Corporate Accountability for Tax Expenditures Act (Public Act 93-0552/HB 235) required that all corporations receiving tax breaks for economic development disclose all job creation, wage and retention results updated annually. It established a procedure for the State to make known, monitor and enforce these tax break agreements to ensure a return on taxpayer money.
A company that fails to meet its part of the bargain will have its tax benefits clawed back by the state, unless that company can demonstrate extenuating circumstances.
To find out about specific corporations in your community and throughout Illinois, please visit the Illinois Corporate Accountability Portal.
Analysis & Reports Wrong Time to implement new tax breaks, November 28, 2011 Illinois Corporate Tax Expenditures: FY 2001 – FY 2004 Overview of The Illinois Corporate Accountability in Tax Expenditures Law – Public Act 93-0552 Overview of the Limitation of the Net Operating Expense Carry Forward Law In their analysis of the first year of economic development deals disclosed under Public Act 93-0552, Good Jobs First reveals the State frequently subsidizes jobs that pay so little a family of four would not be self-sufficient and left to rely upon the social safety net. .
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