summary
Introduced
01/27/2025
01/27/2025
In Committee
02/24/2026
02/24/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who employ qualified employees. Provides that the term "qualified employee" means an individual who (i) is employed by the taxpayer as an engineer and (ii) graduated from an engineering program at an accredited institution of higher learning with a Bachelor's degree or higher within the 5 years immediately preceding the taxable year. Provides that the credit shall be equal to (i) 10% of the compensation paid by the taxpayer during the taxable year to qualified employees who graduated from an engineering program at an accredited institution of higher learning in Illinois or (ii) 5% of the compensation paid by the taxpayer during the taxable year to qualified employees who graduated from an engineering program an accredited institution of higher learning not located in Illinois. Effective immediately.
AI Summary
This bill amends the Illinois Income Tax Act to create a new tax credit called the Retaining Illinois Students of Engineering (RISE) credit, which incentivizes employers to hire recent engineering graduates. The credit applies to tax years ending on or after December 31, 2025, and allows taxpayers to claim a tax credit for hiring qualified employees who are engineers with a Bachelor's degree or higher from an accredited institution within the past 5 years. The credit amount varies based on the location of the graduate's educational institution: employers receive a 10% credit for hiring graduates from Illinois engineering programs and a 5% credit for graduates from out-of-state engineering programs. The credit is calculated based on the compensation paid to these qualified employees during the taxable year. If the total credit exceeds the taxpayer's tax liability, the excess can be carried forward and applied to tax liability in the following 5 years. This legislation aims to encourage businesses to retain and employ recent engineering graduates in Illinois, potentially helping to address workforce development and talent retention in the state's engineering sector.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
House Income Tax Subcommittee Committee Hearing (08:01:00 3/19/2026 Room D-1 Stratton Building) (on 03/19/2026)
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=1803&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB1803.htm |
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