SPRINGFIELD—State Sen. Dave Koehler (D-Peoria) and Rep. Michael Smith (D-Canton) have successfully passed legislation that will help keep Keystone Steel and Wire open, saving more than 1,000 local jobs. "Keystone has made every effort to keep its doors open and its workers at work during this economic crisis," Koehler said. "Though forced to reduce some employees’ hours, the company has managed to avoid massive layoffs and maintained its employee health care plan. Their responsible management is exemplary, and if the State of Illinois can help protect these jobs, I believe it’s our duty to do so."  

Senate Bill 328 allows Keystone to continue to benefit from a tax exemption it has long enjoyed. Illinois provides a tax exemption to businesses in enterprise zones that employ more than 1,000 full-time workers. Due to the recession, Keystone has had to cut back on employee hours and no longer qualifies. The legislation allows Keystone to continue to take the exemption as long as it maintains at least 500 full-time employees and gradually works back up to 1,000 full-time employees by 2013. The potential effect of losing the exemption could amount to a monthly financial loss of $140,000 per month for the company and threaten its financial viability.