IL HB5238

Creates a $5,000 income tax credit for each military spouse hired by an employer taxpayer during the taxable year, effective for tax years ending on or after December 31, 2022.

Applies to employers filing under Illinois Income Tax Act Section 201, with credits allocated to partners, S-corporation shareholders, and LLC members according to their distributive share of income under federal tax law.

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

Defines "military spouse" as the spouse of an active duty member of the U.S. Armed Forces, Illinois National Guard, or any reserve component of the Armed Forces.

The credit is exempt from Section 250 limitations and becomes effective immediately upon enactment.