November 30, 2011

Senate and House lawmakers were unable to reach an agreement on a business incentive intended to provide relief for major Illinois companies, CME Group Inc., CBOE Holding Corp and Sears Holding Corp. All three companies have threatened to leave Illinois unless lawmakers provide tax incentives to offset what the companies contend are burdensome state tax obligations that undermine the desirability of remaining in Illinois.

Legislation was offered in both the House and the Senate, with the Senate offering a plan that offered more generous tax relief for workers—particularly low-income workers. Though both proposals would have offered approximately $100 million in tax relief annually to CME, CBOE and Sears, House and Senate lawmakers could not come to an agreement on the amount of relief to be offered to other groups. As a result, House Bill 1883 passed by Senate lawmakers did not advance in the House.  

Negotiations on a tax break plan are anticipated to continue. The package is anticipated to not only provide relief for high-profile companies and low-income workers, but for other businesses as well. The measure approved by the Senate included a research-and-development credit, and other tax breaks to help smaller companies.