Business
Illinois Bill Could Help Keep Grocery Stores and Pharmacies Open
Chicago, IL – Independent grocery stores and pharmacies across Illinois could soon qualify for new state tax incentives under proposed legislation aimed at helping small retailers stay open, hire work
By Cole Barrett · 2026-10-29T09:46:27.179Z
Chicago, IL – Independent grocery stores and pharmacies across Illinois could soon qualify for new state tax incentives under proposed legislation aimed at helping small retailers stay open, hire workers and maintain access to essential goods in underserved communities.
According to the Illinois Department of Commerce and Economic Opportunity DCEO , House Bill 5828, known as EDGE Essentials, would create a streamlined incentive program for independently owned grocery stores and pharmacies facing rising operating costs.
The proposal is supported by DCEO, the Illinois Retail Merchants Association and state lawmakers, including Rep. Will Guzzardi and Sen. Doris Turner.
New Illinois Tax Incentives Could Support Local Stores
Under the proposed legislation, eligible businesses must operate no more than four stores and commit to at least $500,000 in qualifying capital investments.
Grocery stores employing more than 15 workers would need to invest at least $1 million. Participating grocers would also be required to accept SNAP and WIC benefits.
Businesses located in designated food or pharmacy deserts could qualify for payroll withholding credits of up to 100% for new employees and 50% for retained workers.
Outside those designated areas, credits could reach 75% for new employees and 25% for retained workers.
Eligible businesses would also receive access to Enterprise Zone High Impact Business benefits, including certain building material sales tax exemptions.
Why the Proposal Matters for Illinois Communities
State officials say independent retailers provide critical access to fresh groceries, prescription medications and local employment, particularly in communities with limited shopping options.
"Pharmacies and grocery stores are essential to the health and wellbeing of communities throughout Illinois," said IRMA President and CEO Rob Karr.
Supporters argue the incentives could help offset rising expenses while encouraging businesses to renovate, expand and retain employees.
The legislation remains a proposal and would require legislative approval before the benefits could take effect.
Residents and business owners can follow HB5828 through the Illinois General Assembly.