IL HB4229

Establishes the Recovery and Mental Health Tax Credit Act, creating a tax credit program administered by the Department of Human Services for qualified employers who hire individuals in recovery from substance use disorders or mental illness.

Provides a tax credit of $1 per hour worked by eligible employees, capped at $2,000 per individual per year, with an aggregate program cap of $2,000,000 annually across all employers.

Requires eligible individuals to work a minimum of 500 hours during a calendar year and mandates qualified employers maintain formal relationships with licensed treatment or mental health providers and provide reasonable accommodations at no cost to employees.

Creates a 15-member Advisory Council on Mental Illness and Substance Use Disorder Impacts on Employment Opportunities within Minority Communities to advise the Department on program implementation, outreach, and employment issues affecting minority communities.

Program begins for taxable years starting January 1, 2023, with credits distributed on a pro-rata basis if total claims exceed the annual allocation; protects employee privacy by prohibiting disclosure of health information without written consent.