Please understand the following: 

• The information we provide to you is based on assumptions and does not constitute a guarantee by the State  of Illinois, Macoupin County, or the City of Staunton.
• The type of incentives and amount are determined on a project by project basis.  Not all projects will qualify for certain incentives.

An explanation of the Illinois Tax System

Personal & Corporate Income Taxes
Income earned in Illinois or received by Illinois residents is taxed at 3%, the lowest in the Country.

Advantages: There are no local personal income taxes in Illinois.

Illinois does NOT tax  

• Personal Property
• Machinery
• Inventory
• Retirement income

Corporate Income Taxes

Corporate income apportioned to Illinois is taxed at 7.3%, which includes:
4.8% state income tax and a 2.5 percent personal property replacement tax.
 
           4.8%
         +2.5%
        = 7.3%

A unitary group of corporations files a combined return in Illinois.

Advantages:

The 2.5% replacement tax generates a credit equivalent to deducting the replacement tax before paying the regular corporate income tax 

• Income apportionment is based solely on in-state sales.
• Corporations with more than 80% of their payroll and property outside the U.S. are not included in combined returns. Corporations with unique apportionment formulas are not included in combined returns.
• Credits include a 0.5 percent credit for investment in mining, manufacturing or retailing, plus an additional 0.5% if employment increases over 1%; a 1.6% training expense tax credit; a 6.5% Research and Development credit; and an additional 0.5% investment tax credit plus a $500 jobs tax credit in Illinois Enterprise Zones. The new Illinois EDGE program provides a credit equal to 3% of the wages of a new or expanding business' added employees.