IL HB3275

Amends the Illinois Income Tax Act to create a $2,500 tax credit for each employee who is 55 years of age or older and employed by the taxpayer at an Illinois location for at least 185 days during the taxable year.

Credit applies to taxable years beginning on or after January 1, 2020, and may be claimed against income tax liability under Section 201 of the Act.

Excess credits that exceed tax liability in a given year may be carried forward and applied to the next 5 taxable years, with earlier credits applied first.

For partners, S-corporation shareholders, and LLC members treated as partnerships, the credit is determined based on their distributive share of income under federal tax code provisions.

The credit is exempt from the Act's automatic sunset provision under Section 250.