IL HB5320

Amends the Illinois Income Tax Act to modify the employer withholding tax credit for employers with 50 or fewer full-time equivalent employees.

Changes the maximum credit rate to 25% for reporting periods from January 1, 2022 through December 31, 2024 (previously 17% for 2022, 13% for 2023, and 9% for 2024).

Credit is calculated as 25% of the difference between compensation paid to employees at or below minimum wage minus compensation paid below minimum wage in the prior period before minimum wage increases.

Maintains the credit eligibility requirements including the 90-day consecutive work period and wage growth threshold for employees earning less than $55,000.

Takes effect immediately upon becoming law.