Corporate taxes play role in businesses headquartering in Illinois

There are a variety of reason that businesses decide to build their headquarters in the locations they do such as the business tax rates the various states offer. While the Chicago metro area is home to many businesses, some corporations call other parts of Illinois home. One of those companies is Caterpillar Inc. The manufacturer of heavy earthmoving equipment has been based in its current Peoria, Illinois, headquarters since 1967 and has called the city home for more than 80 years.

Recently, speculation was sparked that the company may be interested in moving when the business announced that it is planning on investigating potential options for updating the headquarters. Peoria's mayor is one of the people who think that the business has signaled its potential interest in moving to another city, state or even country.

The speculation is in part due to the criticism Caterpillar's CEO has leveled at the state of Illinois regarding workers' compensation policies and increases in corporate tax rates. He also apparently provided Governor Pat Quinn with letters from at least three other states that are interested in welcoming the company's headquarters. For its part, a spokesman for the business indicated that the company is "focused on Peoria and the downtown area."

The city's mayor indicated he is interested in seeing what Caterpillar's study indicates is necessary for the future of the business and what incentives it might seek. It is likely that he will do what he can to keep the business there since it is a major presence in downtown Peoria. Currently, over 3,200 individuals who work for the company make their way downtown each day.

Source: Chicago Tribune, "Caterpillar HQ study prompts fear of possible move," Alejandra Cancino, June 25, 2012

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