IL HB3118

Amends the Illinois Income Tax Act by adding a new tax credit provision for small employers with fewer than 15 full-time employees.

Employers may claim a $2,000 credit against withholding tax payments for each employee converted from part-time to full-time employment status who maintains that status for 12 consecutive calendar months.

Credit applies to amounts required to be withheld on or after July 1, 2019.

Excess credits not used in the current period may be carried forward for up to 12 calendar months following the initial claim.

Takes effect immediately upon becoming law.