SPRINGFIELD – The Illinois State Senate passed a revenue package Wednesday containing a number of tax credits and tax emptions, including two measures championed by State Senator Christopher Belt that provide tax incentives to electric vehicle manufacturers and aircraft engine suppliers and manufacturers.
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“The electric vehicle industry showcases the potential for the future of our state,” said Belt (D-Swansea). “Not only do these measures incentivize growth of the electric vehicle and aircraft engine industries, but also it will drive economic prosperity in Illinois while reinforcing the state’s commitment to fostering a sustainable business environment.”
The Aircraft Engine Sales Tax Exemption exempts materials, parts and equipment used in the modification, replacement, repair and maintenance of aircraft engines from sales tax. Belt, as chair of the Senate Appropriations-Public Safety and Infrastructure Committee, was actively involved in budget negotiations and advocated for this tax exemption, originally Senate Bill 2210, to keep business in the state. Currently, businesses are serving aircraft engines for the Chicago area and Metro East from neighboring states because they offer this tax exemption.
The revenue package also contained an addition to the Renewable Energy Vehicle Act. Belt originally sponsored Senate Bill 2576, which would allow electric vehicle manufacturers or businesses that intend to convert or expand to EV manufacturing to qualify for Renewable Energy Vehicle tax credits. The businesses will be required to commit to making at least $500 million in capital investments and retaining at least 800 full-time employees.
“Expanding these tax incentives will lead to an increase of good-paying jobs and economic development,” said Belt. “This is truly a testament to Illinois’ commitment to economic growth, environmental sustainability and technological advancement.”
Senate Bill 1963 passed both chambers with bipartisan support and heads to the governor’s desk.
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