Illinois Governor Pat Quinn this week signed a bill (S.B. 2093) into law that increases the state’s existing New Markets Tax Credit for new investment into small businesses in underserved communities. The new law doubles the cap on Illinois’ existing NMTC program — from $10 million to $20 million — to provide tax credits for new investment into small businesses in low-income communities. The increased cap could generate $125 million in private investment into Illinois businesses. The expansion comes one year after Illinois began its New Markets Tax Credit and exhausted the $10 million cap within six months.
The legislation will also create the Angel Investment Tax Credit to support direct investment by Illinois entrepreneurs and start-up companies, as well as the Sales Tax and Revenue (STAR) bond program to help develop a major retail and entertainment complex near Marion in Southern Illinois.