IL HB1947

Establishes a youth employment income tax credit for taxable years beginning January 1, 2022 or later for employers who hire individuals ages 15-19.

Eligible employers receive a tax credit equal to 60% of wages paid to qualifying young employees who work at least 25 hours every two weeks during the taxable year.

Excess credits that exceed tax liability may be carried forward and applied against tax liability in the next 5 succeeding taxable years, with earlier credits applied first.

Credit applies to partners, S-corporation shareholders, and limited liability company owners based on their proportionate distributive share of income under Internal Revenue Code sections.

Excess credits cannot reduce tax liability below zero and are exempt from the general tax credit limitations in Section 201 of the Illinois Income Tax Act.