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HB 2872

Relating to ensuring the credentials of persons working in regulated building activities.

2025 Regular Session Introduced by Paul Evans

Illinois EDGE tax credit can be claimed against withholding tax (704A) for businesses primarily in pharmacy, health, and wellness, easing payroll obligations.

In committee upon adjournment.
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Bill Summary · HB 2872

Summary — HB 2872 (EDGE — pharmacy / health & wellness)

Status: Rule 19(a) / Re‑referred to Rules Committee
Introduced: Feb 2025 (filed Feb 14, 2025 per user data; original document shows 2/6/2025)
Primary sponsor: Rep. Margaret Croke; Co‑sponsor: Rep. Harry Benton
Statute amended: Economic Development for a Growing Economy Tax Credit Act (35 ILCS 10/5‑15)

Purpose / intent

The bill amends the EDGE (Economic Development for a Growing Economy) tax‑credit statute to let certain taxpayers whose principal business is in pharmacy, health, and wellness elect to use an awarded EDGE credit against their obligation to remit employee withholding taxes (under Section 704A of the Illinois Income Tax Act). The change is intended to make the credit more usable for qualifying businesses that may have limited corporate income tax liability but have ongoing payroll withholding obligations.

Key provisions

  • Modifies Section 5‑15 of the EDGE Act to add “taxpayers that are primarily engaged in the business of pharmacy, health, and wellness” to the class of taxpayers eligible to elect to apply an EDGE Tax Credit against their withholding tax obligations.
  • The election is similar in form to an existing option (subsection (f)) that allows certain other industry participants to claim the credit against withholding rather than income tax, subject to the Act’s other eligibility criteria and any conditions incorporated by reference.
  • The statutory cross‑reference identifies Section 704A (withholding) of the Illinois Income Tax Act as the obligation against which the credit may be claimed.

Who would be affected

  • Primary effect: Illinois businesses primarily engaged in pharmacy, health, and wellness that have been awarded (or are awarded) an EDGE tax credit and meet the Act’s qualifying conditions.
  • Secondary effect: State tax receipts could be affected because some credit amounts would reduce withholding remittances in lieu of income tax liability; fiscal impact depends on how many taxpayers use the election and the size of credits claimed.
  • Administrative: Illinois Department of Commerce & Economic Opportunity and Illinois Department of Revenue would administer/implement the change under existing EDGE award and tax procedures.

Procedural / timeline notes

  • The bill has been introduced and has undergone multiple readings and committee referrals (per the provided action history); current status is Rule 19(a) / re‑referred to Rules Committee.
  • Additional committee consideration and rules action are required before passage; implementation timing would follow enactment and any effective date specified in the final law.

Related / incidental content in the provided document

The supplied packet also includes an unrelated Arizona HB 2872 (2025) that would establish an Arizona Office of Defense Innovation and appropriate $350,000. That is a separate bill in another state and not part of the Illinois EDGE amendment described above.

Compiled from official sources — confirm details with the bill’s official record.

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