summary
Introduced
02/05/2026
02/05/2026
In Committee
02/17/2026
02/17/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Income Tax Act. Creates an income tax credit for each taxpayer that is an eligible small employer in an amount equal to the amount paid during the taxable year by the eligible small employer to its employees as paid leave that is required by the Paid Leave for All Workers Act. Provides that an eligible small employer is an employer that employs 50 or fewer employees during the taxable year and is subject to the Paid Leave for All Workers Act. Effective January 1, 2027.
AI Summary
This bill amends the Illinois Income Tax Act to create a new tax credit for eligible small employers, which are defined as businesses employing 50 or fewer full-time equivalent employees that are subject to the Paid Leave for All Workers Act. This credit, effective January 1, 2027, will be equal to the amount an eligible small employer pays its employees for paid leave mandated by the Paid Leave for All Workers Act, with a cap of 40 hours of paid leave per employee per year. If the credit exceeds the employer's tax liability, the excess can be carried forward for up to five years, applied to the earliest tax year first. The bill also clarifies that this credit is exempt from certain other tax provisions and that partners and shareholders of Subchapter S corporations will follow specific rules for claiming this credit.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Added as Co-Sponsor Sen. Chris Balkema (on 02/20/2026)
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