IL HB1290

Creates a new corporate hiring tax credit under the Illinois Income Tax Act, effective for taxable years beginning on or after January 1, 2026

Corporations that increase their average employee head count in Illinois by more than 10% compared to the prior taxable year qualify for a credit equal to 2% of their Illinois income tax liability

Excess credits that exceed tax liability in a given year may be carried forward and applied to tax liability for up to 5 subsequent taxable years

Credit cannot reduce a taxpayer's liability below zero and must be applied to the earliest year with available tax liability

Partners and shareholders of Subchapter S corporations may claim the credit according to existing pass-through provisions under Section 251