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Jobs Creation Tax Program - Chicago CPA

Illinois Small Business Jobs Creation Tax Program

The Illinois Small Business Jobs Creation Tax Credit program provides incentive for small businesses to grow. Through the program, small businesses can receive a $2,500 tax credit for each new full-time position they create that meets the eligibility requirements. The program is for new jobs crated between July 1, 2012 and June 20, 2016, and is capped at $50 million worth of credits issued. The credit can be claimed against withholding tax payments.

Two categories of businesses are eligible to receive this credit:

1. Small businesses with 50 or fewer full-time employees on July 1, 2012
2. Any-sized business that hires a 2010 “Put Illinois to Work Program” worker-trainee

Eligible jobs are those that pay at least $10/hour or $18,200 annually and are sustained for one full year from the hire date. Note: the same person does not have to fill the job during the 12-month period, but the position must be filled and the company’s overall full-time employee headcount must not decrease.

Applicants can register both their business and their newly created job(s) at the DCEO (Illinois Department of Commerce & Economic Opportunity) jobstaxcredit.illinois.gov website.

If you have any questions, please contact Warady & Davis LLP at 847-267-9600.