IL HB4871

Renames the "credit for ex-felons" to "credit for returning citizens" under the Illinois Income Tax Act Section 216.

Increases the credit rate from 5% to 25% of qualified wages for returning citizens employed primarily in underserved areas, effective for taxable years beginning January 1, 2025.

Raises the maximum lifetime credit cap from $1,500 to $5,000 per returning citizen, with a higher cap of $10,000 for those employed primarily in underserved areas, effective January 1, 2025.

Extends the hiring window for eligibility from 3 years to 10 years after release from an Illinois correctional center for credits claimed in taxable years beginning January 1, 2025 or later.

Defines "underserved area" as a census tract meeting criteria including 20% poverty rate, 35% of families with children below 130% of poverty line, 20% receiving SNAP assistance, or average unemployment exceeding 120% of national average for 2 consecutive years.