HB2920 Summary

• Creates an income tax credit for business entities that provide commuter benefits to employees, equal to 50% of the cost with a maximum of $100 per employee per month.

• Eligible commuter benefits include vanpools meeting specific criteria (minimum 6-seat capacity, 80% of mileage for work commute, carrying at least half capacity) or transit instruments for public mass transit, taxis, or ride-sharing services.

• Business entities must complete and file an Illinois Commuter Tax Credit Registration Form with the Department by the last day of the taxable year in which they claim the credit.

• The credit applies to taxable years beginning after December 31, 2019 and cannot exceed total tax owed for that year; unused amounts do not carry over to future years.

• Amends the Illinois Insurance Code to allow an insured to claim a credit against insurance premium taxes under Section 121-2.08 for commuter benefit costs in the same manner as the income tax credit.