Merry Christmas and Happy Holidays! I'm busy this weekend looking for anywhere but the mall to bring my daughters for the annual picture with Santa.
Independent Contractors and the Gig Economy
One of the biggest election night victories occurred in California when voters supported Proposition 22. This was the most expensive initiative in the state's history. It allows gig economy companies, an area of tremendous growth and importance during a pandemic, to continue treating workers as independent contractors.
I point this victory out because I expect we see legislation on this issue here in Illinois and the Illinois Chamber plans to make this one of our biggest issues of the session. In fact, Todd and I briefed the new Senate Republican Leader on the importance of independent contractors to the state's economy yesterday evening. Illinois has one of the best independent contractor tests in the country, the ABC test. This test strikes a proper balance and should not be altered by a General Assembly with plenty of legitimate problems on is plate. It's also important to point out that there are no ballot initiatives in Illinois- we only have one opportunity to get this right. We will continue to closely follow this crucial issue.
New Rules Issued for Data Centers
The Chamber is proud of the results of the data center tax incentive as the state has seen a tremendous amount of investment as a result. Recently, the Department of Revenue released proposed administrative rules relating to the legislation. Here's the summary from the Flinn report:
The DEPARTMENT OF REVENUE proposed an amendment to Income Tax (86 IAC 100; 44 Ill Reg 18641) implementing two Public Acts. The amendment provides that the data center investment tax credit awarded by the Department of Commerce and Economic Opportunity beginning in calendar year 2019 shall be 20% of the wages paid to a full- or part-time employee of a construction contractor employed by the certified data center. Construction of the new data center must have taken place in an economically distressed area meeting one of the following criteria: unemployment rate more than 120% of the national average, poverty rate of 20% or more, 20% or more households receiving SNAP, or 75% or more of children receiving free school lunches. The rulemaking specifies how the credit will be documented; how it will be awarded when earned by a partnership or subchapter S corporation; and that if the credit amount exceeds the taxpayer's tax liability for the year the excess may be carried forward to the next 5 tax years. Businesses claiming the data center investment tax credit are affected.
A full copy of the rule can be found here:
I'm happy to pass along any thoughts or concerns.
$142 Million in Capital Funding for Discovery Partners Institute
As part of the Chamber supported 2019 Capital Bill, the Administration recently announced the release of more than $142 million to launch new facilities for the Discovery Partners Institute (DPI) and the Illinois Innovation Network (IIN) in order to accelerate economic growth and job creation. Design and planning funds are being released for the $250 million permanent headquarters in The 78, a new South Loop development along the Chicago River. The world-class center and will empower people to jumpstart their tech careers or companies in Chicago, with a focus on training for high-demand tech jobs. DPI also will foster innovation and job creation by bringing together top researchers, business and industry from around the world.
"The Discovery Partners Institute and Illinois Innovation Network are launching a new era for Chicago as an extraordinary focal point for an unparalleled tech workforce and research and development center that will attract talent to our state from around the world," said Governor JB Pritzker. "This investment will strengthen our state's long-term economic vitality for generations to come, creating and supporting nearly 50,000 new jobs in the next ten years, with an economic impact of $19 billion."
Please Send Me Your Legislative Agenda
With Veto Session canceled, it's time to look forward to the spring legislative session. Please send us your agenda so that we can work together to develop a strategy. Email any thoughts/concerns/ideas to firstname.lastname@example.org
Articles of Interest
Meijer and Instacart Partnership https://www.delimarketnews.com/buyside-news/meijer-announces-national-partnership-instacart-Nilam-Ganenthiran/anne-allen/mon-12072020-0852/10826