Bill > HB2847

This bill amends the Illinois Income Tax Act to create a new tax credit for employers who hire individuals with developmental disabilities or severe mental illnesses. Starting in January 2025, employers can receive a tax credit equal to 25% of wages paid to a qualified employee, with a maximum credit of $6,000 per employee per taxable year. To claim the credit, employers must apply to the Department of Human Services for certification that their employee meets the specified criteria. The certification process will involve the department verifying the employee's disability status and issuing a letter of confirmation. The tax credit cannot reduce an employer's tax liability below zero, but any excess credit can be carried forward and applied to tax liabilities in the following five years. The bill applies to various business types, including partnerships and S corporations, who can allocate the credit to partners or shareholders. This legislation aims to incentivize employers to hire and support individuals with developmental disabilities or severe mental illnesses by providing a financial benefit to businesses that do so.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2847&GAID=18&DocTypeID=HB&SessionID=114&GA=104