From AP - News Headlines -

Ill Tax Package Headed to Governor Following Senate Vote

Illinois lawmakers have approved a $330 million package of tax relief to businesses and individuals.

The state Senate approved the business measure 44-9 on Tuesday. The individual tax relief passed 48-4. Both now go to Democratic Gov. Pat Quinn, a supporter.

Sears and the Chicago Mercantile Exchange see the most benefit. The companies had threatened to leave Illinois without financial help from the state. The legislation offers $100 million in tax relief to them and the Chicago Board Options Exchange.

The other measure increases tax credits for the working poor and raises the personal income-tax exemption.

Democratic Gov. Pat Quinn is congratulating lawmakers who adopted the tax-break package, saying it shows what lawmakers can accomplish when both parties work together.

"The final package I think is a balanced approach to help our employers in Illinois," he said. "We understand to have a research and development tax credit on the books in Illinois, not just for one year, but now it's for five years, so we got that established. We got relief with respect to helping smaller businesses. We've extended some of the tax credits that are on the books, and we also were focused on creating jobs and maintaining jobs. And we also were able to help major employers in Illinois."

Experts on economic development say other companies are likely to demand financial incentives of their own. Companies also may play states against each other to get better deals.

(With additional reporting from Illinois Public Radio)

Categories: Economics, Government, Politics