IL HB3385

Allows taxpayers to claim a $2,500 income tax credit for each employee who is 62 years of age or older and employed in Illinois for at least 185 days during the taxable year, beginning in tax year 2022.

Credit applies against Illinois income tax imposed under Section 201 of the Illinois Income Tax Act and extends to partners, S-corporation shareholders, and LLC owners treated as partnerships for federal tax purposes.

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

Credit is exempt from the automatic sunset provision in Section 250 of the Illinois Income Tax Act, making it permanent.

Bill takes effect immediately upon becoming law.