IL HB5803

Allows taxpayers who own and operate a business in Illinois a tax credit of $3,750 per employee hired and retained for 2 years, effective for taxable years beginning January 1, 2012.

Credit is split with $2,500 allowed in the year the employee is hired (if employed through year-end) and $1,250 in the following year (if still employed through year-end).

Credit cannot exceed the taxpayer's Illinois income tax liability for that year; excess credits may be carried forward to the next 5 taxable years, applied to the earliest year first.

For partnerships and S-corporations, the credit is distributed to partners or shareholders according to their distributive share of income under the Internal Revenue Code.

Exempts the credit from Illinois Income Tax Act Section 250 limitations.