Small businesses that create new jobs between now and June 30, 2011, may be able to take advantage of a $2,500 tax credit for new hires through the Illinois Small Business Job Creation Tax Credit. The new tax credit, proposed and signed into law by Governor Pat Quinn earlier this year, targets the foundation of Illinois' economy – the 500,000 small businesses across the state.
The $2,500 credit is available to businesses with 50 or fewer employees (including all locations) as of June 30, 2010. Ninety-five percent of Illinois businesses have fewer than 50 employees. New small businesses hiring their first Illinois employee(s) may also qualify for the credit.
The Illinois Department of Commerce & Economic Opportunity created a simple, easy-to-use online registration system for busy, small business owners at http://jobstaxcredit.illinois.gov/. Eligible companies should register new positions online as soon as a new, full-time Illinois employee is hired and begins providing services. After one year, the companies will then return to the web site to enter substantiating data and apply for their tax credit certificate. Tax credit certificates will be awarded beginning July 1, 2011. The total amount of credits issued is capped at $50 million, which will support 20,000 jobs.