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
- Illinois DCEO - EDGE (illinois.gov)
Related programs
Apprenticeship Education Expense Credit
Qualified education expenses up to $3,500 per apprentice per year, or up to $5,000 when the...
Qualified education expenses up to $3,500 per apprentice per year, or up to $5,000 when the underserved-area conditions apply.
Historic Preservation Tax Credit
Credit based on qualified rehabilitation expenditures, subject to certification/allocation.
Credit based on qualified rehabilitation expenditures, subject to certification/allocation.
Research and Development Credit
6.5% of qualifying Illinois research and development expenditures over the three-year...
6.5% of qualifying Illinois research and development expenditures over the three-year base-period average under current law.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally 6% base investment credit and up to 30% with prevailing-wage/apprenticeship...
Generally 6% base investment credit and up to 30% with prevailing-wage/apprenticeship compliance, plus possible statutory bonuses.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based credit beginning at 0.3¢/kWh, with higher rates and bonuses when statutory...
Production-based credit beginning at 0.3¢/kWh, with higher rates and bonuses when statutory conditions are satisfied.
Clean Fuel Production Credit (Internal Revenue Code §45Z)
Per-gallon or gallon-equivalent credit based on the applicable amount and lifecycle emissions...
Per-gallon or gallon-equivalent credit based on the applicable amount and lifecycle emissions factor; qualifying fuel must be sold by December 31, 2029.