HB2037 Summary

• Changes the veteran hiring tax credit from a percentage-based calculation (10-20% of wages with caps) to fixed dollar amounts: $1,200 for general qualified veterans and $5,000 for unemployed veterans, effective January 1, 2019.

• Expands the definition of "qualified veteran" for tax years beginning January 1, 2019 onward to include all Illinois residents who are members of the National Guard, reserve, or regular component of the Armed Forces of the United States, removing previous restrictions related to specific military operations and discharge requirements.

• Allows employers to prorate the veteran tax credit when a veteran works less than the required 185 days in a taxable year, calculating the credit as one-twelfth of the maximum credit per month of employment.

• Exempts the veteran hiring credit from the automatic sunset provision in Section 250 of the Illinois Income Tax Act, making the credit permanent.

• Allows excess credits to be carried forward and applied to tax liability for the following 5 taxable years, with earlier credits applied first.