Illinois · Economic Development · IL-EDGE-001
EDGE Tax Credit
Publication revised September 24, 2026. Sourcebook page 100.
Credit amount / calculation
Credit tied to new employee withholding; Tier I generally up to 10 years and Tier II up to 15.
Business fit and eligible activity
Manufacturers expanding in Illinois may receive a negotiated payroll-based credit if job, investment and strict 'but-for' rules are met. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.
Eligibility and practical use
A forest-products owner should treat this as a project-specific opportunity and test the actual expenditure or activity against the program rules.
Illustrative business benefit
Use-of-credit illustration, not an estimated award: assume the agency or completed tax form establishes a $1,000 credit for the qualifying activity described above. If sufficient eligible tax is due, a $1,000 credit available for current use reduces that tax by $1,000. If annual limits allow only $600, that is this year's saving; the other $400 survives only if the carryforward or transfer rules permit. Obtain the actual program calculation before estimating a project benefit.
Timing / first action
Seek approval before starting the overall project, including site work or construction. Contact the administering agency and secure the required approval before the project is publicly or contractually committed.
Official sources
- dceo.illinois.gov — EDGE FAQ (dceo.illinois.gov)
Related programs
Apprenticeship Education Expense Credit
up to
Employers supporting qualified apprentices may claim education-expense credits.
Historic Preservation Tax Credit
Credit based on qualified rehabilitation expenditures
Certified historic industrial properties can qualify for a state rehabilitation credit.
Research and Development Credit
6.5% of qualifying Illinois research
Qualified Illinois research can generate an incremental income-tax credit.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Clean Fuel Production Credit (Internal Revenue Code §45Z)
Per-gallon or gallon-equivalent credit based on the
Potentially relevant only if a forest-products business actually produces qualifying transportation fuel.