TINLEY PARK, IL - The results are in they’re not pretty. Members of the Illinois printing community we’re recently asked to provide information related to two key questions.
1) What is the cost of the equipment that you are holding off on purchasing since the Graphic Arts production credit expired?
2) How many employees would you have added if you purchased this equipment?
The responses reveal that Illinois’s print industry has put on hold a staggering $46.6 million in equipment purchases since the expiration of the Graphic Arts tax credit in 2014. Even worse, Illinois printers would have added 204 more jobs during that time if legislators in Springfield had acted to restore the credit.
Bill Gibson, Illinois Director for the Great Lake Graphics Association, called the state’s failure to act “indefensible.” Illinois remains the only state in the U.S. without a tax credit for printers, finishers, postpress companies, or other industry suppliers. “Without this credit Illinois is essentially taxing production; this causes tax pyramiding, higher prices and ultimately kills jobs.” Gibson added, “the poll results speak for themselves, legislators should act immediately to reinstate this incentive and help grow Illinois’ economy.”
The Illinois printing industry has been affected by the crippling loss of the sales tax exemption and manufacturers purchase credit ever since both expired in August 2014. GLGA has been leading the battle in Springfield to have both critical incentives restored.
As a member of the Advance Illinois Manufacturing (AIM) coalition, a diverse group of business industries across the state of Illinois, GLGA is advocating for modern and permanent extensions of four critical tax incentives that will provide stability and predictability for job creators. Among the key points of AIM’s Legislative Agenda are reforming the Manufacturers Purchase Credit to make it permanent by merging it into the Manufacturing Machinery & Equipment exemption and reforming the Graphic Arts Sales Tax Exemption to make it permanent. AIM also wants to have printers reclassified as manufacturers; Illinois remains the only state in the country to not recognize printing as a manufacturing activity.
For more information about the fight to restore Illinois’ lost sales tax exemptions and manufacturers purchase credit, contact GLGA Illinois Director Bill Gibson at (312) 704-5000 or at [email protected].