A major Illinois corporation is disappointed lawmakers couldn’t reach a tax package deal this week, but not because it didn’t get a tax break. Peoria-based Caterpillar says it wanted an extension of the Research and Development tax credit, a component of the measure lost in the shuffle due to talk of Sears and CME. Caterpillar spokesman Jim Dugan says much of the company’s work is in research and development, and he says it’s hard to pinpoint the long-term R&D climate in this state.
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“In the last eight years this R&D tax credit has lapsed three times, so there is exactly no predictability like Caterpillar to make long-term planning,” he says. Illinois is one of several contenders for a Caterpillar plant relocating to North America from Japan, which will bring 1,000 jobs. Dugan says the research and development credit won’t make or break the company’s decision.