Jan. 09--The legal arm of the conservative Illinois Policy Institute on Friday filed a lawsuit to end the state's practice of awarding tax credits to businesses for retaining jobs.
The Illinois Policy Institute is closely aligned with Gov.-elect Bruce Rauner, who will be sworn in Monday. Rauner, a Republican has criticized the state's economic development program and has said it needs to be reformed. He has not offered specific recommendations for changes.
The suit, filed in state court in Sangamon County, said businesses should only receive tax credits for creating new jobs in the state. The state Department of Commerce and Economic Opportunity has awarded tax credits for retained jobs, the lawsuit says.
In the wake of the recession, Illinois has used its Economic Development for a Growing Economy, or EDGE, program as a defensive weapon to keep companies from moving to other job-hungry states, which also offer incentives.
As the Tribune has reported, the state has pledged nearly $1 billion in tax incentives to more than 300 companies since the EDGE program was created in 1999. The bulk of the incentives was awarded for jobs retained.
The Liberty Justice Center lawsuit was filed on behalf of 10 residents who pay state income taxes and who "will be liable to replenish the public treasury for the unlawful depletion of public funds."
The Department of Commerce said it will review the lawsuit when it receives it.
acancino@tribpub.com
Twitter @WriterAlejandra
