Illinois’ Graphic Arts Sales Tax Exemptions

Poll Results Reveal Devastating Effect of Illinois’ Failure to Act on Graphic Arts Production Credit

June 6, 2017 – The results are in, and they’re not pretty. Members of the Illinois printing community were 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’ 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,” he said.  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 and 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 bgibson@glga.info.

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Diverse Illinois Coalition Supports Permanent Tax Solutions to Provide Stability and Strengthen Job Creators; Support HB 5717!

March 3, 2016: The fight continues to restore Illinois’ critical graphic arts sales tax exemptions. A diverse group of business industries across the state of Illinois has launched a coalition committed to advocating for modern and permanent extensions of four critical tax incentives that will provide stability and predictability for job creators.

Advance Illinois Manufacturing includes members in the manufacturing, agriculture, printing, biotech and other important sectors of the state’s economy. The AIM Coalition is advocating for permanent tax solutions to ensure that a wide variety of industries in Illinois remain competitive in the marketplace. AIM is hoping the legislature will support a series of legislative measures that must be adopted to create a secure business environment to further existing manufacturing interests as well as future investment.

“We need to do more in Illinois to embrace the compromising spirit and attract business growth and development here,” said state Rep. Mike Zalewski, D-Riverside, the bill’s chief sponsor. “These tax credits will provide targeted incentives with measurable benefits for employers large and small. My hope is we can use this package to build consensus on innovative ways to grow our state.”

Among the four key points of AIM’s Legislative Agenda – HB 5717 sponsored by Rep. Zalewski 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. Both tax incentives sunsetted in August 2014, significantly affecting the printing industry in the state.

“Presently 49 other states offer some kind of economic incentive to commercial printers engaged in manufacturing activity,” said GLGA’s Bill Gibson. “So the renewal of these incentives is critical to the survival of the commercial printing industry in Illinois. Unfortunately, due to gridlock in Springfield and the expiration of serval pro-business credits, companies are at disadvantage in the marketplace. When lawmakers talk about making Illinois more competitive, about more small business opportunities and about stopping job losses to other states – this is exactly the type of legislation they should be supporting.”

“Illinois needs a stable tax code that will lead to new job creation and increase our position of strength in technology and innovation,” said Mark Denzler, Vice President/COO, Illinois Manufacturers’ Association. “It’s imperative that we advance these four critical tax incentives to keep Illinois manufacturing competitive and to effectively advocate for an industry that employs 570,000 workers in Illinois and contributes $101 billion in total manufacturing output.”

Coalition Members include Illinois Manufacturers’ Association, Illinois Science & Technology, Great Lakes Graphics Association, iBio, Southwestern Illinois Employers Association, Illinois Petroleum Council, Illinois Press Association, Taxpayers Federation of Illinois, Illinois Coal Association, Chicagoland Chamber of Commerce and Choose Du Page Economic Development Alliance.

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Pictures from the 2015 Legislative Day:


Derek-Gordon,-Kyle-McCarter,-Dale-Righter,-John-Kingery

A delegation of Illinois printers and equipment manufacturers went to the State Capitol in Springfield, IL, on April 23, 2015, to fight for the reinstatement of our industry tax incentives. From left: Derek Gordon, Ryobi MHI Graphco; Sen. Kyle McCarter (R-Vandalia); Sen. Dale Righter (R-Mattoon); and John Kingery, Kingery Printing.    

 

 

 

 

Senator-Kimberly-A.-Lightford-(D),-Mary-Richards-Lawrence

A delegation of Illinois printers and equipment manufacturers went to the State Capitol in Springfield, IL, on April 23, 2015, to fight for the reinstatement of our industry tax incentives. From left: Sen. Kimberly Lightford (D-Westchester) meets with Mary Richards Lawrence, Richards Graphic Communications.

 

 

 

 

 

The future of your company and Illinois’ print industry depends on everyone’s active involvement. Let’s work together to bring back what we have lost and further our position as a necessary industry to the rebuilding of the State. Tell your legislators to stop their political budget battles and to get back to making Illinois a hospitable state for the printing industry.

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LINKS – ILLINOIS LEGISLATURE: