summary
Introduced
02/06/2025
02/06/2025
In Committee
04/11/2025
04/11/2025
Crossed Over
Passed
Dead
Introduced Session
Potential new amendment
104th General Assembly
Bill Summary
Amends the Small Business Job Creation Tax Credit Act. Amends the Small Business Job Creation Tax Credit Act. Creates a second set of incentive periods beginning on July 1, 2025 and ending on June 30, 2031. Provides that the basic wage for the second set of incentive periods is $20 per hour. Provides that the credit may not exceed $2,500 per new employee hired, except that, if the new employee is a returning citizen, then the credit for that employee may not exceed $3,500. Provides that the term "returning citizen" means an individual who (i) is a resident of Illinois, (ii) was formerly incarcerated in a federal, State, or local correctional institution, and (iii) is a new employee. Provides that the aggregate amount of credits that may be awarded under the Act is (i) $20,000,000 for new employees other than returning citizens and (ii) $5,000,000 for returning citizens. Adds provisions concerning recapture of the credit if the employee is terminated by the taxpayer within one year after the credit is awarded. Effective immediately.
AI Summary
This bill amends the Small Business Job Creation Tax Credit Act to create a second series of incentive periods from July 1, 2025 to June 30, 2031, with significant changes to the existing tax credit program for small businesses. The bill increases the basic wage requirement from $10 to $20 per hour for the new incentive period and introduces a special provision for "returning citizens" - defined as Illinois residents who were formerly incarcerated and are new employees. For standard new employees, the tax credit remains capped at $2,500 per employee, but for returning citizens, the credit can be up to $3,500. The total available credits are now limited to $20 million for standard new employees and $5 million specifically for returning citizens. Additionally, for the second set of incentive periods, the bill includes a new recapture provision that allows the Department to reclaim the tax credit if a new employee is terminated within one year of the credit being awarded, unless the termination is for cause or the employee voluntarily resigns. The bill aims to encourage small businesses to hire new employees, with a particular focus on providing employment opportunities for returning citizens who have been previously incarcerated.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 04/11/2025)
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