HB5214 Summary

• Establishes a 25% income tax credit for investors making direct investments of $10,000 to $2,000,000 in qualified new business ventures in Illinois for taxable years 2011-2021.

• Requires qualified ventures to have principal place of business in Illinois, employ at least 51% of workforce in-state, be in innovation or pre-commercialization phases, and have fewer than 100 employees at certification.

• Limits annual tax credits to $10,000,000 total, with $500,000 reserved for minority-owned, women-owned, or disability-owned businesses and $500,000 reserved for businesses in counties with populations under 250,000.

• Requires investors to hold investments for at least 3 years to claim credits; excess credits may be carried forward up to 5 years; claimants must repay disqualified credits if holding period or business employment thresholds are not met.

• Mandates Department of Commerce and Economic Opportunity certify investors and register qualified ventures; Department shall report annually to Governor and General Assembly on credits awarded.