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Tax Credits and Compliance

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Illinois Small Business Job Creation Tax Credit

The tax credit gives small business owners an extra boost to grow their business over the next year. After creating one or more new, full-time positions that meet the eligibility requirements, small businesses can register here to receive a $2,500 per job tax credit.

Spread the word! Click here for our Tax Credit Info Sheet (PDF).

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What is the Jobs Tax Credit?

Small businesses are the backbone of the Illinois economy. 95% of Illinois businesses have fewer than 50 employees. This tax credit encourages small businesses to hire today, instead of next year, to get their business and the economy growing again. The credit could be awarded for the creation of up to 20,000 jobs.

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! External link opens in a new window

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


Jobs Tax Credit

Still Have Questions?

Check out the FAQ page on
http://jobstaxcredit.illinois.gov External link opens in a new window

How to Apply for the Jobs Tax Credit:

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! Link opens in a new window

How much is the tax credit worth?

  • 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.
Who will manage the program?

Other Tax Credits & Compliance Resources:

Hiring Incentives:

  • Illinois Enterprise Zone Program External link opens in a new windowLearn 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 External link opens in a new window 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 External link opens in a new windowLearn 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:

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