The Illinois Department of Commerce and Economic Opportunity on Aug. 12 published a five-year plan outlining how it hopes to attract and retain businesses in the state.
At the plan’s center is a strategy to invest in six industries that will receive “prioritized support,” capital investment and job training. They are life science, quantum computing, clean energy production, advanced manufacturing, next generation agriculture and transportation.
Some of these industries, including agriculture, have long been staples of the state’s economy. Others, like clean energy and quantum computing, have become policy priorities for the Pritzker administration in recent years.
In the last two years, the state has given just over $1 billion in tax incentives to companies in the supply chain for electric vehicles and clean energy production through the Reimagining Energy and Vehicles program.
Last month, the state awarded a $92 million tax incentive to quantum technology company PsiQuantum Manufacturing under the Illinois Chips for Real Opportunity Act, the first agreement of its kind.
Deals brokered through those programs are often part of larger packages of tax breaks, state-backed loans and other incentives. The governor’s office estimated PsiQuantum’s total incentives package was worth $200 million.
The five-year plan was put together by DCEO in “consistent collaboration and consultation” with Intersect Illinois, a nonprofit economic development agency founded eight years ago with backing from then-Gov. Bruce Rauner.
Intersect is a major player in “Team Illinois,” an informal coalition of business groups and government officials that lobbies companies to set up shop in Illinois. The group, which has so far operated on a somewhat ad hoc basis, consists of the governor's office, DCEO, Intersect, trade associations, public utilities and other groups, according to the department’s five-year plan.
DCEO’s plan also said it is formalizing the process these groups use to court new business developments, hoping to operate as a “unified front” for attracting investment.
The plan also lays out several proposed “areas for improvement” to state policy on business incentives. These include expanding the incentive program available to advanced manufacturers like vehicle and electronic manufacturers, granting regional economic development officials the ability to establish geographic “enterprise zones” that provide tax breaks, and further extending a tax credit for research and development.
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government. It is distributed to hundreds of newspapers, radio and TV stations statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation, along with major contributions from the Illinois Broadcasters Foundation and Southern Illinois Editorial Association.
