HB5493 Summary

• Amends the Illinois Income Tax Act to create a $2,500 income tax credit for each employee who is 62 years of age or older and employed by the taxpayer at an Illinois location for at least 185 days during the taxable year.

• Credit applies to taxable years beginning on or after January 1, 2023, and is allowed against the tax imposed under Section 201 of the Illinois Income Tax Act.

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

• Credit applies to partners, shareholders of S-corporations, and members of pass-through entities (LLCs treated as partnerships), with allocation determined under IRC Sections 702, 704, and Subchapter S.

• Credit is exempt from the automatic sunset provision in Section 250 of the Illinois Income Tax Act and takes effect immediately upon becoming law.