Following the lead of the incoming Obama administration, state lawmakers recently passed its own version of a stimulus bill, in an effort to give poor communities easier access to investment dollars.
Following the lead of the incoming Obama administration, state lawmakers recently passed its own version of a stimulus bill, in an effort to give poor communities easier access to investment dollars.
Last month, Gov. Rod Blagojevich signed into law Senate Bill 2015, which took effect Jan. 1 and was sponsored by state Sen. James Clayborne Jr., D-East St. Louis, and state Rep. Art Turner, D-Chicago.
Among the things created by the bill was the Illinois New Markets Development Program, a local version of the federal New Markets Tax Credit Program enacted in 2000 by Congress.
The federal NMTC program authorizes up to $23 billion of investments in low-income areas nationwide.
The Illinois version of the bill will provide state tax credits to investors to help drive at least $125 million into small businesses located in low-income communities, Blagojevich said.
“During this national recession, we need to take every opportunity to promote economic development in our state,” he said. “With this law, we will create jobs, spur investments and promote new and innovative businesses.”
To qualify, financiers must make investments into federally approved Community Development Entities that would pour money into projects located in low-income areas.
Many small business owners say they could expand their business and hire more employees if more capital were available to them.
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