HB3923 Summary

• Creates a deduction for workers' compensation costs incurred by employers for employees working in counties with high unemployment (defined as unemployment rate exceeding state average by at least 2%) for taxable years beginning January 1, 2016 or later.

• Establishes a new tax credit for employers not eligible under the Economic Development for a Growing Economy Tax Credit Act who employ at least 5 new employees in high unemployment counties; credit amount equals the tax rate multiplied by average wage of new employees multiplied by number of new employees.

• Amends Section 203 of the Illinois Income Tax Act to add new deduction subparagraphs (HH) for individuals, (AA) for corporations, and (Z) for trusts/estates, and Section 211 to add new subsection (b) creating the high unemployment employment credit.

• Credit is limited to tax liability and can be carried forward 5 years; unused portions must be applied to earliest year with tax liability; carryover credits are applied in chronological order.

• Both the deduction and credit are exempt from the provisions of Section 250 (sunset provision) of the Illinois Income Tax Act.