IL SB2204

Amends the Illinois Income Tax Act to determine the maximum withholding tax credit for full-time equivalent employees based on the metropolitan and nonmetropolitan area where the employee's base of operations is located, using U.S. Bureau of Labor Statistics definitions as of May 2017.

For 2023 reporting periods, establishes a uniform 25% maximum credit for all regions.

For 2024 and beyond, sets tiered credit rates by region: Chicago/Cook County at 40% (2024-2025), 35%-45% for Chicago-Naperville-Elgin suburbs and mid-sized cities, and 45%-60% for nonmetropolitan areas, with rates increasing through 2026.

Modifies the small employer credit (50 or fewer employees) to apply for reporting periods beginning January 1, 2020 onward without an end date, and changes employee tenure requirement language from "worked" to "been employed."

Adds new tax credits for private employers offering at least 30 days of paid organ or bone marrow donor leave, capped at $1,000 per employee per donation.