Illinois Governor Pat Quinn has signed a bill into law that that is expected to boost Illinois’ economy by creating up to 20,000 jobs over the next year at small businesses across the state.
Senate Bill 1578 creates the Illinois Small Business Job Creation Tax Credit. The $2,500 credit will be available to businesses with 50 or fewer employees that hire new, full-time Illinois employees during a 12-month period beginning July 1. Ninety-five percent of Illinois businesses have fewer than 50 employees, the governor’s office said.
“Small businesses are essential to the Illinois economy and it’s crucial that state government find fresh and creative ways of working with entrepreneurs, who will lead the charge toward economic recovery,” according to Gov. Quinn. “This tax credit will help our small business owners and operators to grow by creating 20,000 jobs over the next year.”
The legislation passed the General Assembly unanimously and was sponsored by Sen. Michael Noland (D-Elgin) and House Speaker Michael Madigan (D-Chicago).
To qualify for the credit, a new job must be sustained for at least one year and pay at least $25,000 annually. Eligible companies can apply for the credit online and will be issued a tax credit certificate beginning July 1, 2011. Applications for the credit may be submitted as soon as a new, full-time Illinois employee is hired and begins providing services. The total amount of credits issued is capped at $50 million.
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.
The determination of whether an employer has 50 or fewer employees will include all employees in every location, which includes both in Illinois and out-of-state employment totals. Related businesses will be treated as one business for the determination.
Source: Illinois Governor’s Office
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