summary
Introduced
01/13/2025
01/13/2025
In Committee
03/21/2025
03/21/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2026, each corporation that increases its average employee head count in the State by more than 10% over the corporation's average employee head count in the State in the immediately preceding taxable year is entitled to an income tax credit in an amount equal to 2% of the corporation's Illinois Income Tax liability for the taxable year.
AI Summary
This bill amends the Illinois Income Tax Act by introducing a new corporate hiring incentive credit for taxable years starting January 1, 2026. Specifically, corporations that increase their average employee headcount in Illinois by more than 10% compared to the previous taxable year will be eligible for an income tax credit equal to 2% of their Illinois Income Tax liability for that year. The credit is designed to encourage job creation within the state. If the credit amount exceeds the corporation's tax liability for the year, the excess can be carried forward and applied to tax liabilities in the subsequent five years, with the credit being applied to the earliest year with a tax liability. However, the credit cannot reduce the taxpayer's liability below zero, ensuring it functions as a tax offset rather than a direct payment.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 03/21/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1290&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB1290.htm |
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