Bill > HB1372

This bill creates the Small Business Economic Incentive Act, which aims to support small businesses by requiring that at least 50% of the dollar value of economic incentives awarded by the State of Illinois or its agencies be directed to businesses with 50 or fewer full-time employees, effective January 1, 2026. The bill defines key terms such as "economic incentive" (which includes tax credits and other economic development support), "full-time employee" (an individual working at least 30 hours per week or meeting industry standards for full-time work), and "state agency" (as defined in the State Auditing Act). The legislation mandates that state agencies track and report their compliance with this requirement in their annual reports, providing data to demonstrate that they are allocating at least half of their economic incentives to small businesses. Importantly, the bill does not apply to economic incentives awarded before January 1, 2026, even if those incentives are distributed or used after that date, thus ensuring a clear and prospective application of the new rules.

Business and Industry

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1372&GAID=18&DocTypeID=HB&SessionID=114&GA=104