HB5802 Summary

• Creates a $3,500 tax credit for qualifying taxpayers who own and operate businesses in areas with low long-term manufacturing job projections for each employee hired on or after January 1, 2017 and retained for 2 years.

• Credit is distributed as $2,000 in the year of hire (if employee remains through year-end), $1,000 in the following year (if still employed), and $500 in the second anniversary year (if still employed).

• Defines qualifying areas as Local Workforce Investment Areas projected to have annual manufacturing job growth between 0 and 0.1 percent from 2012 to 2022, as reported by the Department of Employment Security.

• Credit may not exceed the taxpayer's annual Illinois income tax liability; excess credits may be carried forward for up to 5 years and applied to future tax liabilities.

• Exempt from automatic sunset provisions and effective immediately upon enactment.