Working to make Illinois a more attractive state to potential employers, state Rep. Jehan Gordon (D-Peoria) voted this week for legislation that will preserve a vital economic development tool used to attract distribution centers and other warehouse facilities to the state.

“One of my missions as a legislator is to put Illinois in a better position to compete for jobs, and this bill will help make sure an important tool used by economic developers doesn’t go away,” said Gordon. “I will continue to promote legislation that creates compelling reasons for businesses struggling through the recession to set up shop or further invest in Illinois. Extending this exemption for companies moving merchandise in and out of the state is part of this effort.”

Senate Bill 401 extends the centralized purchasing activities sales tax exemption for five additional years. This exemption is available for companies who temporarily store items in Illinois prior to them being transported out of Illinois for consumption and use.  The exemption helps Illinois compete for distribution centers and other facilities that are used in the movement of products.

The centralized purchasing activities sales tax exemption is currently set to expire on June 30, 2011. After this date, if Senate Bill 401 is not signed into law, companies who currently receive the exemption will have to pay sales tax in Illinois and use tax in the state where they ship the item being sold. The Illinois Chamber of Commerce, Illinois Manufacturers Association, Taxpayers Federation, and Illinois Retail Merchants Association all are in support of this measure.

“This tax exemption encourages multi-state companies to keep facilities open in Illinois and saves the jobs they have generated here,” said Gordon. “One of the most important tasks for our state is to create an environment that encourages job growth, and I urge the governor to sign this legislation as soon as possible to ensure this economic development incentive does not expire.”

Senate Bill 401 overwhelmingly passed the General Assembly and awaits consideration by the Governor. For more information on this matter, please contact Gordon’s constituent service office at (309) 681-1992.