104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB1290
 
Introduced 1/28/2025, by Rep. Dave Vella
 
SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/246 new
    Amends the Illinois Income Tax Act. Provides that, for taxable years beginning on or after January 1, 2026, each corporation that increases its average employee head count in the State by more than 10% over the corporation's average employee head count in the State in the immediately preceding taxable year is entitled to an income tax credit in an amount equal to 2% of the corporation's Illinois Income Tax liability for the taxable year.


LRB104 03196 HLH 13217 b

 
 
A BILL FOR
 
HB1290LRB104 03196 HLH 13217 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by 
5adding Section 246 as follows:
 
6    (35 ILCS 5/246 new)
7    Sec. 246. Corporate hiring credit. 
8    (a) For taxable years beginning on or after January 1, 
92026, each corporation that increases its average employee 
10head count in the State by more than 10% over the corporation's 
11average employee head count in the State in the immediately 
12preceding taxable year is entitled to a credit against the tax 
13imposed by subsections (a) and (b) of Section 201 in an amount 
14equal to 2% of the corporation's Illinois Income Tax liability 
15for the taxable year, calculated without regard to the 
16application of this credit.
17    (b) In no event shall a credit under this Section reduce 
18the taxpayer's liability to less than zero. If the amount of 
19the credit exceeds the tax liability for the year, the excess 
20may be carried forward and applied to the tax liability of the 
215 taxable years following the excess credit year. The tax 
22credit shall be applied to the earliest year for which there is 
23a tax liability. If there are credits for more than one year 
 
 
HB1290- 2 -LRB104 03196 HLH 13217 b

1that are available to offset a liability, the earlier credit 
2shall be applied first. 
3    (c) For partners and shareholders of Subchapter S 
4corporations, the provisions of Section 251 shall apply with 
5respect to the credit under this Section. 
6    (d) This Section is exempt from the provisions of Section 
7250.