HB2430 Summary

• Allows taxpayers who own and operate businesses in Illinois a tax credit of $3,750 per employee hired and retained for 2 years, effective for taxable years beginning January 1, 2015.

• Distributes the credit as $2,500 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).

• Permits unused credits exceeding a taxpayer's annual Illinois income tax liability to be carried forward and applied to tax liability in the next 5 taxable years, with earlier credits applied first.

• Allows partnerships and S-Corporations to claim the credit with their partners or shareholders according to their distributive share of income under Internal Revenue Code sections 702, 704, and Subchapter S.

• Takes effect immediately upon enactment.