Bill > SB1271

This bill amends the Illinois Income Tax Act to create three new tax credits for businesses headquartered or operating in Illinois, effective January 1, 2025. The first is a "legacy credit" that provides $100 for each year a business has been headquartered in the state, applicable to sole proprietorships, limited liability companies, and corporations. The second is an "employee tax credit" that offers $100 for each Illinois resident employee who has been continuously employed for at least 6 months. The third is a "collective bargaining employee tax credit" that provides $25 for each Illinois resident employee who meets National Labor Standards Board definitions and has been employed for at least 6 months. For Subchapter S corporations, these credits will be distributed to shareholders based on their income share. If a company's tax credit exceeds its current tax liability, the excess can be carried forward and applied to tax liabilities in the next 5 years, with earlier credits applied first. Importantly, these credits cannot reduce a taxpayer's liability below zero, and they are exempt from certain other provisions of the Illinois Income Tax Act.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1271&GAID=18&DocTypeID=SB&SessionID=114&GA=104