HB5659 Summary: Microfiber Filtration Manufacturing Tax Incentives

• Creates a new tax incentive program for microfiber filtration manufacturing centers in Illinois, allowing qualifying manufacturers to receive certificates of exemption from sales, use, and income taxes on equipment and materials used in construction and operation.

• Requires qualifying manufacturers to make a minimum $200,000 capital investment and create at least 5 full-time equivalent jobs with compensation at 120% of the county average wage within 60 months of receiving certification.

• Provides eligible manufacturers with tax credits equal to 20% of wages paid to employees engaged in microfiber filter manufacturing in designated underserved areas, with credits available against Illinois income tax liability for taxable years beginning January 1, 2025.

• Establishes a memorandum of understanding requirement between the Department of Commerce and Economic Opportunity and applicants, detailing capital investment timelines, job creation goals, and repayment obligations if targets are not met.

• Sets the program sunset date at July 1, 2034, after which no new certificates of exemption may be issued, though existing certificates remain valid until their expiration.