Facebook hacked, social media company says

(Reuters) - Facebook said on Friday that it been the target of a series of attacks by an unidentified hacker group, but it had found no evidence that user data was compromised.

"Last month, Facebook security discovered that our systems had been targeted in a sophisticated attack," the company said in a blog post. "The attack occurred when a handful of employees visited a mobile developer website that was compromised."

The social network, which says it has more than one billion active users worldwide, added: "Facebook was not alone in this attack. It is clear that others were attacked and infiltrated recently as well."

Facebook's announcement follows recent cyber attacks on other prominent websites. Twitter, the microblogging social network, said this month that it had been hacked, and that approximately 250,000 user accounts were potentially compromised, with attackers gaining access to information including user names and email addresses.

Newspaper websites including The New York Times, The Washington Post, and The Wall Street Journal have also been infiltrated, according to the news organizations. Those attacks were attributed by the news organizations to Chinese hackers targeting their coverage of China.

(Reporting By Tim Reid; Editing by Gary Hill)

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No. 2 Duke falls to Maryland 83-81

COLLEGE PARK, Md. (AP) — As the final horn sounded and Maryland fans rushed the court to celebrate a rare victory over its bitter rival, weary Duke had just enough energy left to escape the mayhem for the safety of its locker room.

Seth Allen broke a tie by making two free throws with 2.8 seconds left, and the Terrapins stunned the second-ranked Blue Devils 83-81 Saturday night to end a six-game skid in the series.

Coming off a five-day break, Maryland notched its most significant win of the season at the expense of a tired Duke playing its fourth game in 10 days.

The Blue Devils were worn out, and it showed.

Duke was outrebounded 40-20, never led in the second half and got only four points and three rebounds from 6-foot-10 senior center Mason Plumlee.

"This has been an exhausting schedule for our team," coach Mike Krzyzewski said. "We're playing on fumes and I think you could tell that with Mason. I thought he looked exhausted the whole game. He's been great. Obviously not good tonight."

The Terrapins (18-7, 6-6 Atlantic Coast Conference) did not trail after halftime but never could pull away.

Duke (22-3, 9-3) was down by 10 with 3:39 left but pulled even when Rasheed Sulaimon made three foul shots with 16.7 seconds to go. Quinn Cook then fouled Allen as the freshman guard drove through the lane, and Allen made both shots.

After a Duke timeout, Cook's desperation 30-footer bounced off the back rim. Chaos ensued as the fans immediately rushed the court.

"I thought it was in when I got it off," Cook said of his final attempt.

Alex Len had 19 points and nine rebounds for Maryland, and Allen scored 16. The Terrapins had lost 12 of 13 against Duke, including a 20-point embarrassment last month.

"I told our players before the game, there's a lot of pride in Maryland basketball," coach Mark Turgeon said. "There's also a lot of passion about Maryland basketball. We talked about playing with those two things for us and for our fans. Our fans were just tremendous."

From the end of the Star Spangled Banner to the final buzzer, the crowd never stopped shouting for the Terps, who rewarded their fans with a memorable victory in a rivalry that appears destined to end when Maryland leaves for the Big Ten in 2014.

"I have a great deal of respect for Maryland," Krzyzewski said. "If it was such a rivalry they'd still be in the ACC. Obviously they don't think it's that important or else they wouldn't be in the Big Ten."

Oh, but it's very important to Maryland and its coach.

"This win was for my family and the fans," Turgeon said. "I know what this win means for our fan base, and I really wanted to beat Duke."

The Blue Devils had their six-game winning streak end. Seth Curry scored 25 and Cook added 18. But Plumlee was completely outplayed by the 7-1 Len, who went 6 for 8 from the field and 7 for 8 at the foul line.

"There's so much pressure for Mason to play outstanding," Krzyzewski said. "That wears on you as the season goes on. He just didn't look fresh tonight."

Said Plumlee: "I didn't show up to play today and I let my teammates down. It's all on me."

Maryland committed a whopping 26 turnovers, eight by Allen. The Terrapins shot an impressive 60 percent from the floor and finished with a 40-20 rebounding advantage.

Maryland played without reserve guard Pe'Shon Howard, who was suspended for violating team rules. Despite being demoted from his starting role last month, Howard still leads the Terrapins in assists.

Maryland led 66-63 before Allen scored on a drive. Dez Wells then stole the ball from Cook and went in for a dunk for a seven-point lead with 5:20 left. After the Blue Devils closed to 71-63, James Padgett made a layup for Maryland and Wells made two foul shots for a 10-point cushion.

The crowd increased its volume with every subsequent basket by the Terrapins, whose previous win over Duke came in March 2010, when Greivis Vasquez celebrated Senior Night with a 20-point performance.

In this one, it was 80-72 before Curry made two straight 3-pointers to bring Duke to 80-78 with just under a minute left. After Wells was called for a charge, Curry had a 15-footer bounce in and out of the basket.

It was that kind of night for the Blue Devils.

This score was 39 all before Allen hit a 3-pointer to spark a 10-2 run that included five points from freshman Shaquille Cleare. It was 53-43 before Curry bagged a 3-pointer, Alex Murphy made a layup and Curry drove the lane following Maryland's third turnover in a 60-second span.

That cut the gap to three points, and seconds after a 3-pointer by Cook got the Blue Devils to 55-53.

After the Terrapins went up by six, they committed turnovers on three straight possessions. That enabled Duke to close to 59-57 on a dunk by Murphy, but four straight free throws by Len gave Maryland a 64-59 advantage with 7:20 remaining.

The first half featured two ties, 10 lead changes and ended with the Terrapins up 35-34. Curry (14 points) was one of only four Duke players to score before halftime.

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UN warns risk of hepatitis E in S. Sudan grows

GENEVA (AP) — The United Nations says an outbreak of hepatitis E has killed 111 refugees in camps in South Sudan since July, and has become endemic in the region.

U.N. refugee agency spokesman Adrian Edwards says the influx of people to the camps from neighboring Sudan is believed to be one of the factors in the rapid spread of the contagious, life-threatening inflammatory viral disease of the liver.

Edwards said Friday that the camps have been hit by 6,017 cases of hepatitis E, which is spread through contaminated food and water.

He says the largest number of cases and suspected cases is in the Yusuf Batil camp in Upper Nile state, which houses 37,229 refugees fleeing fighting between rebels and the Sudanese government.

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TV show with Pistorius' dead girlfriend airs

JOHANNESBURG (AP) — Reeva Steenkamp's last wish for her family before she was shot dead at boyfriend Oscar Pistorius' home was for them to watch her in a reality TV show that went on air in South Africa on Saturday night, two days after her killing.

Sharon Steenkamp, Reeva's cousin, told The Associated Press that the model and law graduate was "proud of being in the show" and reminded them in their last conversation to make sure that they watched it.

The South African Broadcasting Corp. aired the "Tropika Island of Treasure" program, showing the late Steenkamp — the victim of a Valentine's Day shooting at the home of Pistorius, the Olympic star and double-amputee athlete. She is laughing and smiling, and blowing a kiss toward the camera in Jamaica when it was filmed last year.

South Africans also saw her swimming in the ocean and watching people jump off a cliff and into the sea, shaking her head as they leaped.

SABC said it was dedicated to Steenkamp and displayed the words "Reeva Steenkamp 19 August 1983 - 14 February 2013" between images of a rose and a candle in a short tribute before the show aired. She was also seen blowing the kiss as she sat on a Jamaican beach and her name again appeared on screen with the years of her birth and death.

The country was rocked Thursday when news broke of Steenkamp's shooting death at the upscale house of the star athlete. Pistorius was arrested and charged with her murder and remains in custody in a police station. His family has strongly denied prosecutors' claims that he murdered her.

Steenkamp's family said earlier Saturday that it had not been contacted by either the SABC — South Africa's national broadcaster — or the show's producers for permission to air it, but were not opposed to it because Reeva wanted everyone to see it.

"Her last words to us personally were that she wants us to watch it," Sharon Steenkamp said, hours before the program was shown.

SABC aired the reality show on its main channel, which prominently featured Steenkamp.

The show's executive producer, Samantha Moon, said going ahead with the show "is what she would have wanted."

Steenkamp, a 29-year-old blonde model who graduated from law school, died after suffering four gunshot wounds, police said. Officers recovered a 9-mm pistol from Pistorius' house and quickly charged the Olympian with murder for Steenkamp's killing.

Pistorius will appear in court Tuesday for a bail hearing, something police have said they oppose. Prosecutors also say they will pursue upgraded charges of premeditated murder against him, which means the disabled icon and double-amputee runner could face a life sentence.

Steenkamp was known in South Africa for appearing in commercials and as a bikini-clad model in men's magazines.

Pistorius and Steenkamp met Nov. 4 at the Kyalami race track, which sits between Pretoria and Johannesburg and has been used for Grand Prix and Formula 1 races, said Justin Divaris, a mutual friend.

Divaris said his own girlfriend was a close friend to Steenkamp. Pistorius and Steenkamp immediately hit it off and decided in the spur of the moment to attend a sports award ceremony together the same night, Divaris said. At the time, Pistorius had been dating another woman and his personal life was constant fodder for gossip pages.

Later, however, problems may have started, as police have said there were previous domestic altercations at Pretorius' home in a gated community near South Africa's capital, Pretoria.

A Steenkamp family spokesman said late Friday that relatives still faced a long struggle to come to terms with her killing.

"I can't see the family getting over this shortly," said Reeva's uncle, Mike Steenkamp. "It's going to be a long, long-term reconciliation with a lot of things and issues."

Family members plan for a memorial service Tuesday for the model in Port Elizabeth, her hometown on South Africa's southern coast. Pistorius has a court appearance scheduled in Pretoria on the same day for his lawyers to argue that he can be released on bail.

Portions released earlier Saturday of the reality show, sponsored by a milk fruit drink, feature Steenkamp laughing and smiling on the beaches of Jamaica. Another portion shows her swimming with two dolphins, which tap her on the cheek with their snouts.

"I think the way that you go out, not just your journey in life, but the way that you go out and the way you make your exit is so important," Steenkamp says in the video. "You either made an impact in a positive or a negative way, but just maintain integrity and maintain class and just remain true to yourself.

"I'm going to miss you all so much and I love you very, very much."

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Associated Press writer Jon Gambrell contributed to this report.

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Gerald Imray can be reached at http://twitter.com/GeraldImrayAP

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Daley turns focus toward Gary

Richard M. Daley has kept a low profile since leaving office in 2011.

That doesn't mean he has lost interest in urban issues. The former mayor has turned his attention in a surprising direction, beyond Chicago's borders to one of the most intractable urban tragedies in America: the collapse of Gary, Ind.

"I always believe no part of America should be forgotten, and I think Gary has been forgotten," Daley said.

Daley is using his influence at the University of Chicago, where he is a distinguished senior fellow, to push a modest but growing amount of manpower toward Gary Mayor Karen Freeman-Wilson.

With guidance from Daley and Freeman-Wilson, University of Chicago graduate students are trying to figure out what to do with Gary's abandoned buildings and how to promote greater use of technology to help the city accomplish more with less, among other projects.

The hope is that the students will go on to help other cities after graduation. If successful, the U. of C.-Gary partnership could be replicated in other industrial towns grappling with decline.

Gary spans about 55 square miles, nearly a quarter of the size of Chicago. Yet the steel town's population has plummeted to an estimated 80,000, meaning the city has lost about half its people since 1960. The city's problems have mounted, including abandoned buildings and homes, sagging infrastructure and a declining budget to pay for services.

Outsiders have tried to fix Gary since at least the Lyndon B. Johnson administration. Freeman-Wilson, a former Indiana attorney general, judge and Harvard College and Harvard Law School graduate, has reinvigorated Gary's renewal efforts. And she's unafraid to ask for help.

Immediately after winning the 2011 Democratic primary, Freeman-Wilson called Daley for advice. They met, and Daley invited her to be the first guest speaker at his lecture series at the University of Chicago's Harris School of Public Policy, where Daley has a five-year appointment.

This quarter, 11 students from the university's public policy, business and social services schools are getting course credit for working on projects for Gary.

"It was Mayor Daley's idea," Freeman-Wilson said as she rode from a meeting on Chicago's West Side to Gary. "I had always envisioned getting the support and work from (University of Chicago Law School) alums, because there were issues around codes and things of that nature. It was not until the mayor came up with the idea of using students from the (Harris) School of Public Policy that I said, 'Oh yeah, that would work. That would work very well.'"

Daley does not teach a class at the University of Chicago. He runs an occasional lecture series.

Carol Brown, his last policy chief at City Hall, leads the program and the class, which is called the "Urban Revitalization Project: City of Gary, Ind." Grants from the Chicago-based Joyce and MacArthur foundations help pay administrative costs, including Brown's salary and that of a part-time assistant.

Last quarter's class was divided into three project teams. One team is cataloging Gary's abandoned buildings, which are magnets for crime and eyesores that further depress surrounding property values. Another is trying to recruit pro bono legal and consulting services for the city. And a third is trying to craft a strategy to clean up front stoops and empty lots one block at a time. This quarter's class also is tackling untapped funding opportunities and economic development.

Freeman-Wilson said a major benefit of the partnership is the fresh ideas from students "who aren't jaded by the limitations of government, whereas a 20-year employee might say, 'Oh, no, we can't do that in government because we don't have X, Y and Z.'"

Already their work has prompted more widespread use among Gary employees of a technology that stores and analyzes geographic data. City workers are now using the technology to map potholes, fallen tree limbs and illegal dump sites. That way work crews can be dispatched to neighborhoods where the problems are most severe.

"This partnership encourages urban planners to think broadly about regions instead of cities — greater Chicago instead of the city of Chicago," said Stephen Paul O'Hara, a historian at Xavier University who wrote a book about Gary.

The students operate as consultants. They gather best practices and ideas from cities around the country and then recommend a course of action. At the end of each 10-week quarter, students present their recommendations to Daley, Freeman-Wilson and their staffs. Their grades are based on those presentations and supporting reports.

"I will tell you, it never stops getting nerve-wracking," second-year graduate student Jocelyn Hare said of presenting to Daley. "But it gets easier."

Last spring, Hare, 32, responded to an email seeking student volunteers to conduct preliminary research to test the idea of a partnership. Hare then interned for the city of Gary during the summer. The Harris school paid her $15 an hour. She then enrolled in the first class in the fall and again this winter, when it was opened to graduate students outside of Harris for the first time.

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1 dead, 3 wounded in 90 minutes Friday night

Chicago police were flagged down by a man on the street as they responded to a shots fired call Friday night and found a woman lying on the ground, bleeding from a gunshot wound to her upper body.

She and three others were wounded between about 5:55 p.m. and 7:20 p.m. on the South and West sides, according to Chicago police.

The woman, whose age wasn't available, was shot in the 1100 block of North Pulaski Road, just a bit south of Division Street in the West Humboldt Park neighborhood about 7:05 p.m. She was taken to Mount Sinai Hospital in critical condition and was pronounced dead there.

About 7:20 p.m., two people were shot in the 7800 block of South Merrill Avenue in the South Shore neighborhood. One was shot in the knee and the other suffered a graze wound. Police didn't have any other details about that incident.

About 5:55 p.m., a man sitting in his car near his home was shot in the leg by one of three guys who approached him on foot, police said. The 29-year-old was taken to Advocate Christ Medical Center, where his condition had stabilized.

Earlier Friday, a 17-year-old was shot in the hand in the 7800 block of South Morgan Street in the Gresham neighborhood.

Check back for more information.

pnickeas@tribune.com
Twitter: @peternickeas

lford@tribune.com
Twitter: @ltaford

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Facebook says it was a target of sophisticated hacking

SAN FRANCISCO/LOS ANGELES (Reuters) - Facebook Inc said on Friday hackers had infiltrated some of its employees' laptops in recent weeks, making the world's No.1 social network the latest victim of a wave of cyber attacks, many of which have been traced to China.

It said none of its users' data was compromised in the attack, which occurred after a handful of employees visited a website last month that infected their machines with so-called malware, according to a post on Facebook's official blog released just before the three-day U.S. President's Day weekend.

"As soon as we discovered the presence of the malware, we remediated all infected machines, informed law enforcement, and began a significant investigation that continues to this day," Facebook said.

It was not immediately clear why Facebook waited until now to announce the incident. Facebook declined to comment on the reason or the origin of the attack.

A security expert at another company with knowledge of the matter said he was told the Facebook attack appeared to have originated in China.

The attack on Facebook, which says it has more than 1 billion members, underscores the growing threat of cyber attacks aimed at a broad variety of targets.

Twitter, the micro blogging social network, said earlier this month it had been hacked and that about 250,000 user accounts were potentially compromised, with attackers gaining access to information, including user names and email addresses.

Newspaper websites, including those of The New York Times, The Washington Post and The Wall Street Journal, have also been infiltrated. Those attacks were attributed by the news organizations to Chinese hackers targeting coverage of China.

Earlier this week, U.S. President Barack Obama issued an executive order seeking better protection of the country's critical infrastructure from cyber attacks.

"INFILTRATED"

Facebook noted in its blog post that it was not alone in the attack, and that "others were attacked and infiltrated recently as well," although it did not specify who.

The Federal Bureau of Investigation declined to comment, while the U.S. Department of Homeland Security did not immediately return a call seeking comment.

In its blog post, Facebook described the attack as a "zero-day" attack, considered to be among the most sophisticated and dangerous types of computer hacks. Zero-day attacks, which are rarely discovered or disclosed by their targets, are costly to launch and often suggest government involvement.

While Facebook said no user data was compromised, the incident could raise consumer concerns about privacy and the vulnerability of personal information stored within the social network.

Facebook has made several privacy missteps in the past because of the way it handled user data. It settled a privacy investigation with federal regulators in 2011.

According to one person familiar with the situation, the type of information on the employee laptops that were compromised included "snippets" of Facebook source code and employee emails.

Facebook said it spotted a suspicious file and traced it back to an employee's laptop. After conducting a forensic examination of the laptop, Facebook said it identified a malicious file, then searched company-wide and identified "several other compromised employee laptops".

Another person briefed on the matter said the first Facebook employee had been infected via a website where coding strategies were discussed.

The company also said it identified a previously unseen attempt to bypass its built-in cyber defenses and that new protections were added on February 1.

Because the attack used a third-party website, it might have been an early-stage attempt to penetrate as many companies as possible.

If they followed established patterns, the attackers would learn about the people and computer networks at all the infected companies. They could then use that data in more targeted attacks to steal source code and other intellectual property.

Another fear for such a popular website is that hackers could use central controls to infect wide swathes of its user base at once.

In January 2010, Google reported it had been penetrated via a "zero-day" flaw in an older version of the Internet Explorer Web browser. The attackers were seeking source code and were also interested in Chinese dissidents. Google reduced its operations in China as a result.

(Additional reporting by Alexei Oreskovic in San Francisco and Tim Reid in Los Angeles; Editing by Paul Tait)

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Different looks for Heat, Lakers at All-Star break

HOUSTON (AP) — If Kobe Bryant's season seems tough, imagine what Dwyane Wade went through five years ago.

"I came to All-Star weekend one year, I think we had won nine games. Seriously," Wade said Friday. "I was looking for my 10th win at the All-Star game."

Things sure have changed for his Miami Heat.

Back where they first teamed up as All-Stars in 2006, Wade, LeBron James and Chris Bosh return as NBA champions who will start together for the Eastern Conference on Sunday night.

Now the misery belongs to Bryant, Dwight Howard and the Los Angeles Lakers, whose season has been so disappointing that Bryant was asked Friday if the All-Star weekend was a "retreat" for him.

"I don't know if it's a retreat, it's just more of an opportunity to get some rest, regroup, put the first half of the season behind us and move on," he said.

As Wade knows, the All-Star break can be just that — a break — from a forgettable season.

He arrived for the 2008 All-Star game with a 9-43 record after the Heat lost on Valentine's Day to the Chicago Bulls, on their way to a 15-win debacle just two years after they won the NBA title.

"I put all that aside though, and I came and I enjoyed the weekend, and when I went back to Miami, it was like, 'Oh my God, we're back in it,'" Wade said. "But All-Star weekend, you just enjoy being an All-Star. You enjoy being around the guys. You can kind of forget about that a little bit, unless you have the cameras and the microphones in front of you asking you questions about it, but besides that you try to enjoy it."

This time, the Heat celebrated Valentine's Day in Oklahoma City with a 110-100 victory over the Thunder, the team they beat in five games last summer for the title. They have won seven in a row, James is playing arguably the best basketball of his career, and they can relax and reminisce as they return to Houston.

"It's really indescribable," Bosh said, "just to not only win a championship with great guys, be in a great locker room, and just to have fun doing it, but just to be an All-Star every year, play with great teammates, I mean to play in front of a lot people in arenas every night. I don't take those things for granted."

James, Wade and Bosh were in their third NBA seasons when they were chosen for the 2006 game, which turned out like so many Heat games these days. James was voted MVP after scoring 29 points and leading a huge East comeback that was wrapped up when Wade made the go-ahead basket with 16 seconds left.

Think about that: James was already the best player that night, and he was nowhere near the player he is today.

"I'm a better player. At that point in time, I wasn't a complete basketball player. I couldn't shoot as well as I can now, I never posted up back then," James said. "More games, more playoff games, more knowledge. You continue to learn each and every day, it makes you a better player. That's what you want, to become a better player. That's what I want. I want to be the greatest of all-time. I try to do whatever it takes to get me in that position.

"Seven years, I've tried to improve each and every year."

He's gotten to the point now where he ran off an NBA-record six straight games with at least 30 points and 60 percent shooting from the field, and seems to be distancing himself from anyone else that can take the MVP award he won last year for the third time in four years.

"He's doing well," Bosh said in a Texas-sized understatement. "That's the best way to put it."

Bosh was chosen as a starter Friday by Heat coach Erik Spoelstra, who will lead the East. He replaces Boston guard Rajon Rondo, who pulled out with a torn ACL.

Bryant and Howard are still here, away from a Los Angeles season that's been anything but a Hollywood story.

Considered a title contender after acquiring Howard and Steve Nash in the summer, the Lakers fell to 25-29 after they were blown out Wednesday by the rival Clippers, who opened a 13-game lead over them in the Pacific Division standings.

Smiling as he sat with his daughter, Natalia, Bryant laughed that he wished the All-Star break was a chance for the Lakers to "hit the reset button" on what he's said has been a most difficult season.

"Hopefully there's an easy button like in the commercial when we come back in the second half of the season and things are a little easier for us," he said.

Howard has battled injuries to his back and shoulder and has been nothing like the player who has been the NBA's dominant big man in recent years. He said at times he hasn't been having fun and has tried to ignore all the bad news around the team.

"You just try to stay away from the tube and do as much as I can to rehab my back and my shoulder and my mind, and really just get away from everything when I'm not playing basketball," he said.

If he's looking for a chance to enjoy himself this season, it may get no better than the next few days.

"It's a great weekend, it's an unbelievable weekend for the fans to be able to put all their favorite players together in one venue," James said. "We have a great time with it."

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Follow Brian Mahoney on Twitter: http://www.twitter.com/Briancmahoney

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Judge sets May trial date for Kardashian divorce

LOS ANGELES (AP) — Kim Kardashian has a due date for her baby and now a trial date for her divorce from NBA player Kris Humphries.

A judge on Friday set a May 6 trial for the reality TV star who wants to end her marriage before July, when her child with Kanye West is due.

Kardashian filed for divorce on Oct. 31, 2011, after she and Humphries had been married just 72 days. Their lavish, star-studded nuptials were recorded and broadcast by E! Entertainment Television.

The trial is expected to last three to five days and could reveal details about Kardashian's reality show empire, which includes "Keeping Up With the Kardashians" and several spinoffs.

Two judges determined Friday that Humphries' lawyers had adequate time to prepare for the trial.

Humphries wants the marriage annulled based on his claim that Kardashian only married him for the sake of her show.

She denies that allegation and says the case should be resolved through what would be her second divorce.

Humphries' attorney Marshall Waller asked for a delay until basketball season is over.

But Superior Court Judge Scott Gordon refused, saying firefighters, police officers, truck drivers and others have to miss work for trials, and Humphries must do the same if necessary.

Waller filed paperwork Thursday to withdraw from the case but didn't mention that development in court and refused to answer any questions about the document on Friday.

Waller said he was still hoping to obtain and review 13,000 hours of footage from Kardashian's reality shows to try to prove the fraud claim but noted he does not yet have an agreement to receive the footage.

Kardashian's lawyer said her client was ready for trial.

"Let's get this case dispensed with," attorney Laura Wasser said.

Humphries has provided a deposition in the case, as have West and Kardashian family matriarch Kris Jenner.

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Anthony McCartney can be reached at http://twitter.com/mccartneyAP

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Illinois corporate tax credits swelled to $161 million 2011

When lawmakers raised taxes on Illinois residents and businesses, they also increased corporate income tax breaks for a select group of companies.

In 2011, businesses were eligible to claim about $161 million in tax credits — double from the prior year — mostly because of the increase to 5 percent from 3 percent in the state's personal income tax rate, which is a factor in determining the value of the incentives. The boost marked the largest increase in the Economic Development for a Growing Economy tax credit program, the state's main economic development program, since its creation in 1999.

Deere & Co., Boeing Co. and Caterpillar Inc., whose leader severely criticized lawmakers for tax hikes, were among dozens of companies that received more robust tax breaks. Some companies' deals also allowed them to be in line to receive tax incentives even while laying off workers or lowering wages.

The EDGE program allows a business to claim a credit against its corporate income tax liability if it agrees to create and/or retain jobs and make an investment in the state of at least $1 million, for companies with fewer than 100 workers, and at least $5 million for larger companies.

Once accepted into the program, which typically lasts 10 years, a company applies on an annual basis for a tax credit certificate, similar to a voucher, which it can claim when it files its taxes.

Marcelyn Love, a spokeswoman with the Department of Commerce and Economic Opportunity, which administers the program, said that under the tax credit program companies make investments and employ workers, practices that otherwise would not have occurred without the credits.

"Both the private investment and the increased employment significantly increase tax revenue collection for the state in excess of the credits given," Love said in an email. Far from adding to the tax burden, she added, these incentives actually generate revenue for the state. "Further, most of these tax credits pay for themselves within two years."

The certificates are the only way to gauge the potential cost and scope of the program, because tax filings are not public. The Tribune obtained the 2011 certificates data, the latest year available, under the state's Freedom of Information Act. Companies have as many as five years to redeem a certificate.

After a deal is finalized, a company has two years to meet its side of the bargain and begin applying for certificates. Thus, the increase in the total value of 2011 tax breaks is also the result of companies receiving certificates for the first time. For example, Ford Motor Co. began applying for its certificates in 2010 from a 2007 deal.

During Gov. Pat Quinn's administration, companies have received increasingly larger deals. Many have been for retaining jobs, according to a Tribune analysis. In 2011, Sears Holdings Corp. was offered a tax credit package worth $150 million over 10 years to keep its headquarters in the state and retain at least 4,250 full-time jobs. The company, which after the deal was announced revealed that it was closing 125 stores nationwide, has yet to apply for a certificate. Five of those stores were in Illinois. State officials have said that during a recession, when few jobs are created, it's important to focus on retaining workers.

Chris Brathwaite, a Sears spokesman, said the company's employment level at its headquarters is higher than the more than 6,000 jobs it had when the deal was approved, but he declined to provide figures.

In general, the value of a certificate equals the number of jobs created and/or retained, multiplied by wages tied to those jobs and the state's personal income tax rate.

That means companies that didn't add one worker and kept wages at the 2010 rate received a 67 percent boost to their 2011 corporate income tax break. Just like individuals, corporations also registered a tax rate increase in 2011. Lawmakers set the new corporate income tax rate at 7 percent, up from 4.8 percent. The increases in breaks partially offset that hike.

The formula under which companies become eligible to receive tax breaks was aimed at encouraging job creation and increasing employee wages. Still, the 2011 data revealed that some companies made deals to allow job cuts and still qualify for incentives, a practice known as "normal attrition."

A case in point is Motorola Mobility. For the past two years, Motorola Mobility has qualified for certificates worth a total of $22.6 million while slowly chipping away at its workforce. Late last year, the smartphone-maker, which was acquired by Google Inc. in May, announced it was laying off 20 percent of its global workforce. Locally, the company cut hundreds of workers, bringing its Illinois head count to about 2,300, a figure that would make it ineligible for a 2013 certificate unless it boosts its workforce before the end of the year.

The Department of Commerce and Economic Opportunity said the EDGE program played a crucial role in keeping Motorola Mobility in Illinois after it was acquired by Google. Its presence, the agency said, is drawing more technology investment and jobs to the state.

A state lawmaker wants the state to end the wiggle room practice, cap at $100 million the annual amount of tax breaks awarded and remove the investment bar so more small and medium-size businesses can qualify for breaks.

"Large multinationals are getting all the breaks," said Rep. Jack Franks, D-Marengo, adding that his focus is to modernize the program and increase accountability.

Franks' House Bill 1336 would also limit the length of the tax breaks to five years and require that companies pay workers at least the median salary of their occupation as determined by federal data. The bill also eliminates the provision requiring companies to make a capital investment in the state of at least $1 million or $5 million, depending on their size. And it creates a nine-member board to oversee the deals, with members appointed by the governor and approved by the state Senate.

Franks said that the Department of Commerce and Economic Opportunity shouldn't promote the program while also negotiating deals with companies, because it creates a conflict of interest.

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