Tax Credits and Compliance

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What businesses are eligible for this tax credit?

• Eligible employers must have 50 or fewer total employees on June 30, 2010.
• The determination of whether an employer has 50 or fewer employees on June 30, 2010, will include all employees in every location, which includes both in Illinois and out of state employment totals.
• Calculation of the net increase in the number of Illinois employees is based on the employer’s number of Illinois employees as of June 30, 2010. If the business hires 10 new people and lays off 12, it wouldn’t receive any credits.
• New small businesses hiring their first Illinois employee(s) may qualify for the credit.

Is the tax credit limited to a particular industry? Does it exclude retail or restaurants?

This tax credit is applicable to all industries as long as:

• The position created is full-time (over 35 hrs. per week), and
• The position pays no less than $13.75 per hour or the equivalent salary for a new employee for a minimum of $25,025 annualized.

Click Here to Watch the Press Release Video!

Governor Quinn Signs Legislation to Boost Number of Illinois Small Business Jobs. New Tax Credit Will Create 20,000 Positions Throughout State

Still Have Questions?

Check out the FAQ page on
http://jobstaxcredit.illinois.gov

Get Registered:

• Eligible companies must register that they have created a new position online.
• Online registration for the credit may be made as soon as a new, full-time Illinois employee is hired and begins providing services.
• Approximately one year after filling the new position, the business will provide supporting data as requested online in order to be issued its tax credit certificate(s). The credit certificates will be issued beginning July 1, 2011.
• Tax credits granted will not change the recognition of withholding tax paid for either employer or employee.

Click Here to Register!

• The credit is for $2,500 per job (that can be carried forward) on withholding tax for employers with 50 or fewer total employees who hire new, full-time Illinois employees during the 12-month period beginning July 1, 2010.
• A credit can be taken against a company’s withholding tax liability.
• The program is capped at $50 million worth of credits issued.

• Department of Comerce and Economic Opportunity will work with the Department of Revenue as it does with various other tax credit programs already in place.
• An analysis of the cost to administer this tax credit by DCEO is underway and has yet to be completed.

Hiring Incentives:

• Illinois Enterprise Zone Program Learn about the state and local tax incentives, regulatory relief, and improved government services found in an Illinois Enterprise Zone.
• EDGE: Economic Development for a Growing Economy Learn about a special tax incentive offered to companies to locate or expand operations in Illinois when there is active consideration of a competing location in another state. The program can provide tax credits to qualifying companies, equal to the amount of state income taxes withheld from the salaries of employees in the newly created jobs.
• HIB: High Impact Business Program Learn about the HIB program encouraging large-scale economic development activities by granting tax incentives to companies making a substantial capital investment in operations that will create or retain an above average number of jobs.

Compliance Resources:

• Illinois TaxNet File your Unemployment Insurance Tax, Wage Reports, State Withholding Forms, and to make IL-501 payments.
• State Tax Filing and Registration Information
IRS Tax Information for Businesses