What are the reasons for doing business in Illinois?
Businesses frequently cite an abundance of skilled labor, a well-developed infrastructure, and a strategic, central location as compelling reasons to locate or expand in Illinois.
Illinois also has a robust technology and innovation program, offering tax credits and other incentives for advanced manufacturing and other types of businesses.
What is the state of infrastructure in Illinois?
Illinois is a national transportation hub. According to state officials, 1.6 billion tons are valued at $2.5 trillion of freight flow through the state annually.
The American Society of Civil Engineers (ASCE) gave Illinois a grade of C-, though they acknowledged improvements made to roads and transit in their report. On the other hand, the state received an A in the infrastructure category from CNBC in their Top States for Business study. CNBC’s methodology takes into account broadband access while the ASCE report does not.
Chicago’s O’Hare International Airport is currently undergoing a $8.5 billion modernization effort due to be completed in 2028.
What is the cost of doing business in Illinois?
Illinois has a relatively high tax burden compared to other states competing to attract large businesses. Illinois has a corporate income tax of 9.5% and a flat personal income tax rate of 4.95%. Property and sales taxes are also high compared to neighboring states.
What are the other challenges of doing business in Illinois?
Illinois has struggled with fiscal stability. Between 2015 and 2017, the state received eight credit rating downgrades due to a large pension liability. Since then, Illinois has made strides to improve its creditworthiness. In 2023, Moody’s gave Illinois a stable rating of A3, a month after S&P upgraded its rating to A-.
Chicago remains an economic hub for the Midwest, but the city is struggling to overcome its reputation for crime and high costs.