IL SB4020

Creates an income tax credit for employers with 500 or fewer average employees who hire qualified employees for full-time jobs in Illinois during taxable years 2020-2024.

Credit amounts are $2,500 per qualified employee for employers with 101-500 employees and $5,000 per qualified employee for employers with 100 or fewer employees.

Increases credit by $500 if the employee works in a disproportionately impacted area or resides in such an area on the hiring date (single $500 increase maximum if both conditions apply).

Defines "qualified employee" as a state resident hired for a net new job who was unemployed due to COVID-19, excluding employees furloughed and reinstated by the same employer.

Caps total tax credits issued by the Department of Commerce and Economic Opportunity at $100,000,000 for the program duration, with credits allowed to be carried forward up to 5 years if they exceed current tax liability.