Law Expands Eligibility for Small Business Job Creation Tax Credit
Governor Pat Quinn today signed legislation to provide a strong incentive for employers to keep worker-trainees originally hired under the Put Illinois to Work program and move them into permanent positions. The new law, benefiting both Put Illinois to Work participants and businesses across the state expands eligibility for the Illinois Small Business Job Creation Tax Credit to ensure that Put Illinois to Work employers are eligible for the $2,500 credit.
"Put Illinois to Work has been nationally recognized for its success in providing worker-trainees with job skills and a hands-on experience they would have not otherwise received," said Governor Quinn. "This new law gives employers a strong incentive to continue providing good jobs for those who need it most."
Under the law, any employer that hires a former worker-trainee from the Put Illinois to Work program is now eligible for the Illinois Small Business Job Creation Tax Credit. The $2,500 credit is still available to small businesses that have 50 or fewer full-time employees (including all locations) as of June 30, 2010.
"We are seeing signs of recovery every day, and we will continue to create policies that will help people find jobs and help businesses hire qualified applicants," said DCEO Director Warren Ribley. "This law will help encourage job creation and growth as we continue our economic recovery."
House Bill 4599, sponsored by Rep. Careen Gordon (D-Coal City) and Sen. Jeffrey Schoenberg (D-Evanston), is effective immediately. Governor Quinn created the Illinois Small Business Job Creation Tax Credit last year to help jumpstart job creation in the wake of the national recession. The $2,500 tax credit is available to qualified businesses that make a new hire by June 30, 2011. The position must be sustained for at least one year (not necessarily held by the same individual for the year).
Beginning in early February, employers will be able to register new positions using the expanded criteria online at JobsTaxCredit.illinois.gov. Companies can use the website after the hire has been made to enter substantiating data. Employers hiring a former participant in the Put Illinois to Work program can claim half of the tax credit six months after the date of hire and the last half of the tax credit 12 months after the date of hire. The new law requires that the employees receive no less than $10 hourly, with a minimum $18,200 annually. For more information, businesses should call 1-800-252-2923. The total amount of credits issued is capped at $50 million.