IL HB3413

Creates a $3,500 tax credit for qualifying taxpayers who hire employees in areas with low long-term manufacturing job projections, applicable to employees hired on or after January 1, 2018 and retained for 2 years.

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

Defines qualifying areas as Local Workforce Investment Areas projected to experience annual compound growth rate between 0 and 0.1 percent for manufacturing employment from 2012 to 2022, as reported by the Department of Employment Security.

Credits cannot exceed the taxpayer's Illinois income tax liability for the year; excess credits may be carried forward for up to 5 years and applied in order of origin.

Credit is exempt from automatic sunset provisions and applies to partnerships and S-Corporations according to their distributive share of income; becomes effective immediately upon enactment.