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What are the Requirements?

The requirements can be described as a "Three-Legged Stool" - a balance of job creation, capital investment, and the "but for" principle, each leg representing a crucial aspect of the program's requirements.

The "three-legged stool" must remain intact throughout the approval process; if one leg were to break, the entire structure would collapse, resulting in the non-approval of the application.

 

The Three-Legged Stool:

Job Creation Capital Investment "But For"
Job creation is about adding and retaining full-time employees to your company.  The EDGE program rewards you for doing this in Illinois. Capital investment refers to spending money on long-term assets for your business, like equipment, leases costs or building costs. The "but for" clause is a way for you to show that the tax credits are a deciding factor in your choice to invest in  Illinois.

Job Creation and Capital Investment Requirements:

100 or fewer world-wide employees More than 100 world-wide employees
  • Job Creation: The lesser of
    • 5% of world-wide employment, or
    • 50 new full-time jobs
  • Investment minimum: $0*
  • Job Creation: The lesser of
    • 10% of world-wide employment, or
    • 50 new full-time jobs
  • Investment minimum: $2,500,000

*Applicants cannot receive more in credits than the project investment.

  • Must complete a one time audit to confirm job creation and capital investment.

The "But For" Requirement:

The EDGE program requires an applicant to certify that, if not for the State’s commitment to provide tax credit incentives (communicated via an official State of Illinois approval letter), the applicant would not expand or locate its project in Illinois.  This is known as the “but for” requirement.

Together, these three elements form a balanced approach, ensuring that the EDGE program supports businesses that will contribute significantly to the state's economy through job creation, make substantial capital investments, and show that the support from the program is a critical factor in their ability to do so.