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Local enterprise zones on hold over Illinois budget impasse

The state economic development agency that approves sales tax breaks for construction materials says it cannot certify 49 previously approved enterprise zones because of the ongoing budget impasse in Illinois.

The Department of Commerce and Economic Opportunity announced Sunday that the tax incentives are on hold as first-term Republican Gov. Bruce Rauner and majority Democratic lawmakers continue to squabble over the absence of a state spending plan in the fiscal year that began July 1.

Department director Jim Schultz says that it would be a "disservice to Illinois businesses and communities" to issue the tax breaks "while the state continues to bleed jobs due to high costs of doing business."

The program also allows local governments to negotiate additional incentives with companies that in turn promise to create new jobs. 

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