IL HB4413

Creates a tax withholding credit for employers in Chicago who employ covered employees in gratuity-based occupations and are entitled to pay a subminimum wage under Chicago Municipal Code Section 6-105-030.

Credit applies to reporting periods beginning January 1, 2025 through December 31, 2028, calculated as the difference between what would have been paid at current minimum wage (accounting for gratuity allowances) versus $9.48 per hour.

Employers must comply with Chicago's subminimum wage provisions for tipped workers and cannot claim credit amounts exceeding their tax liability for the reporting period; excess credits may not be carried forward.

Requires employers claiming the credit to make returns and pay withheld taxes not retained by the employer to the Department of Revenue or designated depositary in the manner required by rule.

Authorizes the Department of Revenue to adopt emergency rules for implementation, with such emergency authority expiring one year after the bill's effective date.