Chicago Tax Lawyers

The Illinois Small Business Job Creation Tax Credit is designed create up to 20,000 jobs by offering a $2500 withholding tax credit to small businesses who create and sustain new positions during the twelve month period beginning July 1, 2010.

To be eligible a position must be full time and pay at least $25,000 annually.  “Full time” is defined as a position that is salaried or hourly with at least 35 hours per week.  It must be created after July 1, 2010 and sustained for one year.  For each position created, employers are eligible for the tax credit.

The tax credit is only for small businesses, which the law behind the credit defines as any business with 50 or fewer full-time employees.  For the purposes of qualifying for the tax credit, a business’s number of employees is determined as of June 30, 2010.  All locations are counted to determine total employees of a company and this includes locations outside of Illinois.  The Illinois Department of Commerce and Economic Opportunity sys 95% of companies in Illinois have fewer than 50 employees.

The total tax credit is capped at $50 million and credits are awarded on a first come, first serve basis.  The credits will be distributed on July 1, 2011.

To make sure you get the most out of The Illinois Small Business Job Creation Tax Credit or for help with other corporate tax matters, contact the Chicago corporate lawyers of Horowitz and Weinstein.

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