Recovery Initiative to Support Employment
Small businesses in many industries are struggling and as a result, have no choice but to layoff valued employees. Entrepreneurs and independent contractors in the fields most impacted by the pandemic are also losing their businesses. The COVID-19 pandemic has been unforgiving this winter with more businesses on the brink of failure, and potentially more jobs to be lost.
The Small Business Advocacy Council and Representative Jennifer Gong-Gershowitz and Senator Ram Villivalam have worked to file H.B 0801 & S.B 2490 that will provide a tax incentive to businesses that retrain and hire new employees. This legislation will help both Illinois workers and employers get back to work after the global slowdown. Small businesses in the technology, healthcare, and manufacturing spaces, as well as other small businesses may be in the position to train and hire unemployed individuals. This proposed tax incentive will help small businesses transition potential employees into new fields.
This proposed legislation will provide:
- Businesses with under 500 employees, a $2,500.00 tax credit for each net new employee it retrains and hires.
- Businesses with under 100 employees, a $5,000.00 tax credit for each net new employee it retrains and hires.
- An additional tax incentive of $500.00 if the business is located in a disproportionately impacted area (DIA,) or if the person being hired resides in a DIA.
These tax credits will provide a significant return on investment while putting people safely back to work. The tax revenue generated by getting people back to work and the money saved by reducing unemployment makes this a fantastic investment for Illinois.
SWIFT ACTION REQUIRED
We must pass this jobs act now. With the resurgence of the pandemic, many small businesses will continue to struggle and more people will lose their jobs. By incentivizing job growth through the RISE Act, we can get people safely back to work and rebuild local economies.