HB0634 Summary

• Modifies the veteran wage credit under the Illinois Income Tax Act effective January 1, 2017, changing it from a percentage-based calculation to a flat $1,200 credit per qualified veteran employed for at least 30 hours per week for 185+ days annually.

• Establishes a $5,000 flat credit for unemployed veterans (previously 20% of wages, capped at $5,000) who were unemployed for 4+ weeks in the 6 weeks before hire and employed for specified minimum periods based on unemployment duration.

• Expands the definition of "qualified veteran" starting January 1, 2017 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.

• Allows credits to be prorated on a monthly basis if a veteran is employed for less than 185 days but continues employment into the following year, with proration calculated as the maximum credit divided by 12 and multiplied by months of employment.

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