CHICAGO – Today, the Illinois Department of Commerce and Economic Opportunity (DCEO) and the Illinois Retail Merchants Association (IRMA) announced support for HB5828 (EDGE Essentials) – new legislation that would create a streamlined package of tax incentives for independently owned grocery stores and pharmacies, helping small businesses invest in their operations, retain and hire workers, and continue serving communities across Illinois.
Independent grocers and pharmacies play an essential role in Illinois communities, providing access to fresh food, prescription medications and other everyday necessities while supporting local jobs and economic activity. In communities with limited access to grocery stores or pharmacies, these businesses can be particularly important to residents who might otherwise need to travel significant distances to meet basic needs.
EDGE Essentials is designed to ease the strain of opening or maintaining an independent store during a time of increasing costs. This program would provide access to several tax benefits through a simple application process. The benefits would include enhanced incentives for businesses located in designated food or pharmacy deserts, where maintaining access to essential goods and services can be especially challenging.
“Independent grocers and pharmacies are important parts of the local economy, creating jobs, investing in their communities, and making sure families can access the everyday essentials they need,” said DCEO Director Kristin Richards. “By making it easier for independent retailers to access incentives for hiring and expansion, we can support small businesses while strengthening local economies and helping communities across our state thrive.”
“Pharmacies and grocery stores are essential to the health and wellbeing of communities throughout Illinois, but these businesses operate on the very thinnest of margins and are finding it increasingly difficult to keep their doors open,” said Rob Karr, president and CEO of the Illinois Retail Merchants Association. “EDGE Essentials will help relieve some pressure by providing tax benefits to independent grocery stores and pharmacies in exchange for meaningful investments, including hiring and retaining employees, and improving property and store fronts. We appreciate the partnership of DCEO, as well as the support of our legislative champions, Rep. Will Guzzardi and Sen. Doris Turner, as we work together to preserve and grow these vital businesses.”
INCENTIVES SUPPORT HIRING AND INVESTMENT
Under the program, eligible businesses would need to be independently owned, with no more than four stores, and plan to make a qualifying capital investment of at least $500,000. Grocery stores with more than 15 employees would be required to make a capital investment of at least $1 million. Participating grocers would also be required to accept Supplemental Nutrition Assistance Program (SNAP) and Women, Infants, and Children (WIC) benefits.
EDGE Essentials would establish two primary benefits for these businesses including:
"Our state's tax incentives can't just be about helping big corporation land big projects," said House Assistant Majority Leader Will Guzzardi (D-Chicago). "We can use tax policy to help small independent businesses meet basic needs in underserved communities. That's what EDGE Essentials will do: help independent grocery stores and pharmacies provide affordable food and medicine in parts of our state that desperately need them."
“Independently owned grocery stores and pharmacies are essential to communities across Illinois,” said State Senator Doris Turner (D-Springfield). “When we invest in small businesses, we are investing in the people who live here. Creating a streamlined package of tax incentives for these small businesses would streamline operations, allowing them to retain and hire workers while serving the community.”
ADDRESSING RISING COSTS AND PROTECTING ACCESS TO ESSENTIALS
The legislation responds to significant changes to the national policy landscape affecting food assistance and independent retailers. Federal legislation surrounding SNAP changes, unpredictable tariffs, and rising fuel costs have raised costs for households already experiencing food insecurity and for the independent grocers that depend in part on SNAP-supported sales.
For independent grocers and pharmacies, higher operating expenses and uncertainties about the cost of maintaining or expanding facilities can make long-term investment difficult, particularly in communities where customer purchasing power is limited. When a local store closes or a business decides against expanding, residents may face fewer options for purchasing groceries or obtaining prescriptions close to home.
By providing incentives tied to employment and capital investment, EDGE Essentials would seek to help independent retailers manage these costs while preserving and expanding access to essential goods. Its additional benefits for businesses in food and pharmacy deserts would recognize the importance of these stores in communities with fewer retail options.
“For many of the customers I serve, it’s difficult to travel to a doctor, and I help bridge that gap by providing access to medicine needed to manage chronic conditions or common ailments. I take pride in my work, but it’s getting harder to break even,” said Edwin Muldrow, Owner and Pharmacist at Del-Kar Pharmacy in North Lawndale. “EDGE Essentials will help the small guys like me stay open and continue to serve my community. This isn’t a handout, it’s a partnership between the state and businesses to help foster investment and maintain access to food and medicine.”
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