IL HB3017

Creates a $5,000 income tax credit for employers for each military spouse they hire during the taxable year, effective for taxable years ending on or after December 31, 2026

Defines "military spouse" as the spouse of an active duty member of the U.S. Armed Forces, Illinois National Guard member, or member of any reserve component of the U.S. Armed Forces

Allows unused credits to be carried forward and applied to tax liability for up to 5 taxable years following the year the excess credit was generated

Credit cannot reduce a taxpayer's liability below zero

Partners, S corporation shareholders, and LLC owners may claim the credit based on their distributive share of income under federal tax rules