HB2412 Summary

• Modifies the veteran wage credit for taxable years beginning on or after January 1, 2015, changing it from a percentage-based calculation (10% of wages, capped at $1,200) to a flat $1,200 credit per qualified veteran employed for at least 30 hours per week for 185 days.

• Expands the definition of "qualified veteran" for tax years beginning on or after January 1, 2015, to include all Illinois residents who are members of the National Guard, reserve, or regular component of the Armed Forces, removing previous restrictions requiring service in specific operations and honorable discharge documentation.

• Introduces a $5,000 credit under Section 217.1 for veterans who were unemployed for an aggregate period of 4 weeks or more during the 6-week period before hire, requiring employment of at least 30 days (or 185 days depending on unemployment duration) at 30+ hours per week.

• Allows both credits to be prorated when veterans are employed for less than 185 days in a taxable year if they meet the 185-day threshold in the following year, with proration calculated on a monthly basis.

• Exempts both veteran wage credits from the automatic sunset provision in Section 250 of the Illinois Income Tax Act, making them permanent tax credits.