IL HB1858

Creates an income tax credit for employers providing reimbursement to employees for commuting costs to Illinois worksites, effective for taxable years beginning January 1, 2022.

Credit equals 50% of commuting reimbursement costs, capped at $100 per employee per month.

Eligible costs include passes, tickets, fare cards, vouchers, and other items required for public or private transit systems, excluding taxi services.

Credit cannot reduce tax liability below zero and cannot be carried forward or backward to other tax years.

For partnerships, S-corporations, and LLCs taxed as partnerships, the credit is determined based on distributive income share under federal Internal Revenue Code sections.