Blue Collar Jobs Act (BCJA)
New Construction Jobs Credit Program
June 2023
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Agenda
• Blue Collar Jobs Act Overview
• DCEO Program Prerequisite/Relationships
• Application
• Reporting Requirements
• Certificate Issuance
• Frequently Asked Questions
• Contact Information
Blue Collar Jobs Act Overview
• The Blue Collar Jobs Act (BCJA) is designed to promote large-
scale economic development activities by providing corporate
income tax credits to project owners that make substantial
capital investments in Illinois.
• BCJA tax credits are based on the amount of withholding
taxes from the compensation paid to construction workers
employed on site at an eligible project.
Blue Collar Jobs Act Overview
• To be considered an eligible applicant, the project must be:
• Located in an Enterprise Zone (EZ), or be within a River
Edge Redevelopment Zone (RERZ), or
• Hold designation as a High Impact Business (HIB) business
project, or
• Have an executed agreement under the Economic
Development for a Growing Economy (EDGE) Program.
• The BCJA construction tax credit program will provides $20
million annually in tax credits to qualifying projects that
have been approved to receive incentives through one of
the four programs.
• Participation in one of these four programs is mandatory to
qualify for the tax credits.
Blue Collar Jobs Act Overview
• Qualifying companies may receive an income tax credit of up
to 50% of withholding taxes attributable to wages paid to
construction workers employed on the job for qualified
projects.
• If the project is located within an underserved area, the
company may receive a credit up to 75% of the withholding
tax for the attributable construction wages.
• Project owners and/or their designee may be required to pay
prevailing wage as determined by the Illinois Department of
Labor.
Blue Collar Jobs Act Overview
• Definition of an eligible project is the building of a taxpayer
structure or building or making improvements of any kind
to real property, undertaken by a business that has
previously applied for and have been approved under the
state programs for EZ, EDGE, HIB, or RERZ
• A qualifying project does not include the routine
operations, routine maintenance, or routine repair of
existing structures, buildings or real property.
Blue Collar Jobs Act Overview
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Agenda
• Blue Collar Jobs Act Overview
• DCEO Program Prerequisite/Relationships
• Application
• Reporting Requirements
• Certificate Issuance
• Frequently Asked Questions
• Contact Information
DCEO Program Prerequisite/Relationships
• To be eligible, a company must be located in an EZ, or
located in an RERZ, or hold a HIB designation, or have an
existing executed agreement under the EDGE program.
Each pre-requisite program may have differing job creation
and qualifying capital investment
minimums/requirements.
DCEO Program Prerequisite/Relationships
BCJA - EZ
• EZ Construction Credits (20 ILCS 655/)
• The project must be located in an existing certified
Enterprise Zone in compliance with Section 4 of the
Enterprise Zone Act and approved by the designated
Enterprise Zone administrator.
• The project involves a qualified capital investment of at
least $10,000,000.
DCEO Program Relationships
BCJA - RERZ
• RERZ Construction Credits (65 ILCS 115/)
• The project must be located in an existing certified River
Edge Redevelopment Zone and approved by the
designated RERZ administrator.
• The project involves a qualified capital investment of at
least $1,000,000 in a qualified project.
DCEO Program Relationships
BCJA - HIB
• HIB Construction Credits (20 ILCS 655/5.5)
• The company must be currently designated and holding
certification as a High Impact Business.
• The project includes a qualified capital investment of at
least $10,000,000.
DCEO Program Relationships
BCJA - EDGE
• EDGE Construction Credits (35 ILCS 10/)
• The project has an existing signed executed agreement as
part of the EDGE program.
• The project involves a qualified capital investment of at
least $10,000,000.
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Agenda
• Blue Collar Jobs Act Overview
• DCEO Program Prerequisite/Relationships
• Application
• Reporting Requirements
• Certificate Issuance
• Frequently Asked Questions
• Contact Information
Application
• When a project has been approved and confirmed by the EZ,
RERZ, HIB, or EDGE programs, the project owner or company
representative may complete the BCJA application found at:
• DCEO's BCJA website
or by email @ ceo.bcja@illinois.gov
• For an EZ or RERZ project, a letter to DCEO from the local EZ
or RERZ administrator/manager must be included with the
application confirming the project is located in the current
Enterprise Zone or River Edge Redevelopment Zone and
meets the qualifications.
Application
• Applications received that are complete with all supporting
documentation and detailed information will be reviewed
and approved or disapproved within 45 days of receipt.
• If there is a disapproval, the Department will notify
applicants of additional information necessary to complete
the application and the applicant will have 60 days to
correct any issues, provide additional information and
resubmit a completed application.
• Complete applications that are resubmitted will be approved
or disapproved within 30 days.
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Agenda
• Blue Collar Jobs Act Overview
• DCEO Program Prerequisite/Relationships
• Application
• Reporting Requirements
• Certificate Issuance
• Frequently Asked Questions
• Contact Information
Reporting Requirements
• No later than the 15
th
day of each calendar month, contractors and
subcontractors must file a copy of the certified payroll for the
preceding month to the taxpayer/project owner/designee in charge
of the project who in turn must submit the payroll information
within 5 days of receipt to the Illinois Department of Labor and the
Illinois Department of Commerce and Economic Opportunity.
• The certified payroll will be accompanied by a statement signed by
the contractor, subcontractor or an officer, agent, or employee of
such, stating that the certified payroll records have been examined
and are true and accurate, and that the contractor, subcontractor is
aware that filing a certified payroll that he or she knows to be false
is a Class A misdemeanor.
Reporting Requirements
• The taxpayer in charge of the project, or any business
entity qualified to receive credits or has received credits
and the contractor and subcontractor engaged in a BCJA
construction jobs project is to make, submit, and keep for
a period of 5 years, detailed and complete records for all
laborers and other workers employed by said contractors
and/or subcontractors doing construction on the project.
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Agenda
• Blue Collar Jobs Act Overview
• DCEO Program Prerequisite/Relationships
• Application
• Reporting Requirements
• Certificate Issuance
• Frequently Asked Questions
• Contact Information
Certificate Issuance
• A project owner (Taxpayer) will certify in the application the
understanding of a detailed provision that the taxpayer shall
be awarded a New Construction Jobs Tax Credit upon the
verified completion of a New Construction Tax Credit project.
• It is a requirement that the Taxpayer shall provide written
notification to the Director not more than 30 days after the
Taxpayer determines that the required qualified capital
investment, or other issues are not or will not be achieved or
maintained as set forth in the terms and conditions of the
Agreement.
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Agenda
• Blue Collar Jobs Act Overview
• DCEO Program Prerequisite/Relationships
• Application
• Reporting Requirements
• Certificate Issuance
• Frequently Asked Questions
• Contact Information
BCJA Frequently Asked Questions
• Tax credits will be awarded to the applicant project owner (taxpayer).
• Tax credits will be awarded upon the completion of a project.
• Out-of-state based contractors/subcontractors should be registered to
do business in the state of Illinois.
• Construction workers do not have to be Illinois residents.
• Applications should be submitted upon approval of the appropriate
prerequisite program manager.
• Projects concluded after January 1, 2021 may apply for the tax
credits.
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Agenda
• Blue Collar Jobs Act Overview
• DCEO Program Prerequisite/Relationships
• Application
• Reporting Requirements
• Certificate Issuance
• Frequently Asked Questions
• Contact Information
