IL SB3738

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

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

Raises the maximum lifetime credit per returning citizen from $1,500 to $5,000 (or $10,000 if employed in an underserved area) for taxable years beginning January 1, 2025.

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

Defines "underserved area" as a census tract meeting criteria including poverty rates of at least 20%, child poverty at 130% of the poverty line, SNAP assistance usage of 20% or more, or unemployment rates exceeding 120% of the national average.