SPRINGFIELD, Ill. (WTVO) – The Illinois 2023 Budget includes the Manufacturing Illinois Chips for Real Opportunity, or Micro Act.
It offers various tax incentives for high-tech manufacturers of semiconductors, microchips and their components and is intended to attract chip production plants to Illinois in order to ease the supply pressure.
“Now it’s more important than ever to invest in American manufacturing to avoid over-reliance on overseas producers. This is especially true for specialized technological components such as semiconductors and microchips that are used in thousands of everyday products,” said Mark Denzler, president and CEO of the Illinois Manufacturers’ Association. “Because of our state’s highly skilled workforce, access to power and water, and central distribution location, Illinois is uniquely positioned to house the manufacture of these important products. We thank the governor and lawmakers for their bipartisan support of this legislation, particularly sponsors Sen. Suzy Glowiak Hilton, Rep. Michael Halpin and Rep. Tim Butler, and look forward to bringing more important manufacturing jobs to Illinois.”
Stellantis’ Belvidere assembly plant has been shut down several times in recent months due to the lack of chips. The new law will offer qualifying manufacturers an improved version of the Edge Tax incentive for 15 years. Employers would also receive a tax credit on 75% of income tax deductions attributable to new employees, which would increase to 100% if the manufacturing facility is in an underserved area.