Starting July 1, 2012, qualified Illinois small businesses are eligible to receive a $2,500 per job tax credit for creating one or more new, full-time positions that meet the eligibility requirements. The program is an extension of the pilot program which expired on June 30, 2011.
- Small businesses with 50 or fewer full-time employees on July 1, 2012. This figure includes all employees in every location, both within and outside of Illinois.
- Any business, regardless of size, that hires a 2010 “Put Illinois to Work Program” worker-trainee.
- Located within Illinois.
- Requirement for a net increase in the number of full-time Illinois employees. This is based on the number of Illinois employees as of June 30, 2012.
- New businesses hiring their first Illinois employee(s) may qualify for the credit.
- Not-for-profit and Professional Employer Organizations (PEOs) may qualify for the credit.
- Newly created, full-time positions.
- Position created between July 1, 2012 and June 30, 2016.
- Wages are subject to Illinois withholding tax.
- Position sustained for at least one year. The position does not necessarily need to be held
- Position pays no less than $10/hour or the equivalent annualized salary of $18,200.
- Credit may be claimed for an hourly employee working an average of at least 35 hours per week or for a full-time salaried employee.
- Position cannot be filled by a person who was previously employed by the business during the 6 months prior to July 1, 2012.
- Position cannot be filled by any individual who has a direct or indirect ownership interest of at least 5% in the profits, capital, or value of the business.
Applying for and Claiming the Credit
- Eligible companies must register online at http://JobsTaxCredit.illinois.gov
- 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 filing the new position, the business will provide supporting data as requested online in order to be issued the tax credit.
- Tax credit certificates will be issued beginning July 1, 2013.
- Tax credit is applied against Illinois withholding tax.
- The program is capped at $50 million worth of credits issued.