SB2257 Summary

• Amends the Illinois Income Tax Act to tie withholding tax credits for small employers to geographic regions (Metropolitan and Nonmetropolitan areas as defined by the U.S. Bureau of Labor Statistics as of May 2017).

• For 2021, establishes a uniform 25% maximum credit for all regions; beginning 2022, credit percentages vary by region, ranging from 30-60% depending on the area and year.

• Applies to employers with 50 or fewer full-time equivalent employees claiming credits for employees earning at or below minimum wage, with credits available for reporting periods beginning January 1, 2020 onward.

• Requires employees to have worked at least 90 consecutive days with the employer to qualify, and employers must demonstrate average wage increases year-over-year to remain eligible.

• Makes technical corrections to the definition of "full-time equivalent employee" and takes effect immediately upon becoming law.