IL HB2466

Establishes a tax credit for employers who employ persons with developmental disabilities or severe mental illness, as certified by the Department of Human Services, effective for taxable years beginning January 1, 2024.

Tax credit equals 25% of wages paid to qualified employees, capped at $6,000 in wages per qualified employee per taxable year.

Taxpayers must apply to the Department of Human Services for employee certification; the department will issue a certification letter and adopt rules for the certification process.

Excess credits that exceed 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.

For partnerships and Subchapter S corporations, the credit is distributed to partners or shareholders according to their distributive share of income under the Internal Revenue Code.