Hoping to create up to 20,000 new jobs by July, 2011, Illinois has passed a new law creating the Illinois Small Business Job Creation Tax Credit, a $2500 withholding tax credit for small businesses that create new positions during the 12 month period beginning July 1, 2010.
To be eligible a company must have 50 or fewer full-time employees. According to the Illinois Department of Commerce and Economic Opportunity 95% of all businesses in the state make the cut. The company’s number of employees is determined as of June 30, 2010 and includes all locations, even those outside the State of Illinois.
The credit is available to employers who create new full-time positions and sustain them through the twelve month period. Each new position created is eligible for its own credit. The credits will be distributed on July 1, 2011. Employers can register for credits as soon as new personnel are hired. The total amount of credits is capped at $50 million and they will be distributed on a first come, first serve basis.
To be eligible the position must be full-time, salaried or hourly with at least 35 hours per week, and make at least $25,000 annually.
For more information on The Illinois Small Business Job Creation Tax Credit, or for help with other corporate law issues, contact the Chicago attorneys at Horowitz and Weinstein.