Illinois Small Business Job Creation Tax Credit Extended and Expanded!

Illinois employers should act quickly to take advantage of the extended $2,500 tax credit for creating new jobs.  Eligible jobs must be full-time positions newly created between July 1, 2012 and July 30, 2016.  The position itself must be sustained for at least one year and must pay no less than $10.00 per hour or the equivalent salary for a minimum of $18,200 annualized.  Note that the credit may also be claimed for an hourly employee working on average of at least 35 hours per week.

Illinois has also expanded the guidelines for employer eligibility.  Eligible employers are those who employ 50 or fewer full-time employees (at all locations) and now includes not-for-profit organizations, Professional Employer Organizations, and any-sized business that hires a 2010 “Put Illinois to Work Program” worker-trainee.

The tax credit is $2,500 per job and must be applied against an employer’s Illinois withholding tax on Form IL-941.  One year after filing the new position, the employer must provide supporting data as requested to be issued a tax credit certificate.  The credit must be claimed in the reporting period in which it is received and can be carried forward for up to five years.  Register online now at – the program is first-come, first-serve and is capped at $50 million worth of credits.

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