Bill
HB 2811
Expands EDGE credits to allow steel recycling/melting and steel wire/rod manufacturers to apply credits against withholding tax rather than income tax, effective immediately.
Status & Timing
- Bill number: HB 2811 (Illinois General Assembly)
- Introduced: February 6, 2025 (Rep. Sharon Chung)
- Current status: Rule 19(a) / Re‑referred to Rules Committee (most recent procedural entry Mar 21, 2025). Reported favorably out of committee April 9, 2025 and subsequently placed on the General State Calendar. Companion bill: SB 688.
- Effective date: Immediately upon enactment (bill text: “Effective immediately”).
Purpose / Intent
- To amend the Economic Development for a Growing Economy (EDGE) Tax Credit Act (35 ILCS 10/5‑15) to expand the set of taxpayers who may elect to apply an awarded EDGE tax credit against withholding tax obligations rather than against their income tax liability. The change specifically targets certain businesses in the steel recycling and steel wire/rod manufacturing sectors.
Key Provision(s)
- Amends Section 5‑15 of the EDGE Act to permit taxpayers that are “primarily engaged in the recycling and melting of steel products and in the manufacturing of new steel wire and rod products” to elect to claim an EDGE credit against their withholding tax obligation under Section 704A of the Illinois Income Tax Act instead of against income tax liability.
- The election mechanism mirrors an existing option in subsection (f) of Section 5‑15 that already allows certain other industry categories to use credits against withholding under defined conditions (the bill extends analogous treatment to the identified steel sector).
- Effective immediately upon enactment.
Who or What Is Affected
- Primary beneficiaries: companies in Illinois whose principal business activities are steel recycling/melting and manufacturing of new steel wire and rod products and that are recipients of EDGE tax credits under the Act.
- State tax administration: Department designated in the EDGE Act (which administers and awards EDGE Credits) and Illinois Department of Revenue for implementing the withholding‑credit election and monitoring compliance.
- Fiscal impact: could change the timing and composition of state revenue collections (credits applied against employer withholding reduce amounts remitted to the state in payroll withholding), and may improve cash‑flow/value realization for qualifying steel firms that have limited income tax liability.
Potential Policy Impacts / Considerations
- Facilitates utilization of EDGE credits by steel sector firms that otherwise could not fully use credits against income tax (for example, firms with net losses or limited income tax liability).
- May accelerate the economic benefit to recipients (credits offset withholding obligations more quickly) but could reduce short‑term state cash receipts from withholding.
- Administration will require handling of election procedures and coordination between awarding agency and Department of Revenue.
Sponsors & Related Information
- Primary sponsor: Rep. Sharon Chung. Co‑sponsors: Rep. Ryan Spain, Rep. Travis Weaver, Rep. Jehan Gordon‑Booth.
- Related legislation: SB 688 (companion).
Note: The available text is limited and partly truncated; this summary highlights the bill’s central amendment (allowing the steel‑sector withholding election) and likely administrative and fiscal implications based on existing EDGE Act practices.
Compiled from official sources — confirm details with the bill’s official record.
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