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Tax Credit Programs

Watch the Hiring Tax Credits for Employers Video  (1:15).

Topic Information & Resources

Overview

Employers that hire economically disadvantaged workers may receive federal tax credits of up to $2,400 for short-term welfare recipients, and ex-felons under the Work Opportunity Tax Credit program (WOTC) or up to $9,000 over a two-year period for long- term public assistance recipients. The credit can be as high as $9,600 per veteran for for-profit employers or up to $6,240 for tax-exempt organizations.

The Illinois Small Business Jobs Creation Tax Credit is only available to businesses and non-profits that registered on or before June 30, 2011, with the Department of Commerce and Economic Opportunity (DCEO). DCEO oversees the program and issues the credit in the form of a credit certificate after application by a qualified employer. For more information, see DCEO.

Programs

Click on the links below to learn more:

Illinois Veteran's Tax Credit

Illinois employers can earn a State income tax credit of up to $5,000 annually for hiring veterans of Operation Desert Storm, Operation Enduring Freedom, or Operation Iraqi Freedom. The credit is 10 percent of the total wages paid to every qualified Veteran hired after January 1, 2010. Veterans must work at least 185 days during the tax year for the employer to qualify for the Veteran's Tax Credit.

The Veteran's Tax Credit can be claimed by employers on income tax returns.

To file for the Veteran's Tax Credit, please visit the Illinois Department of Revenue (IDOR) and file Income Tax Form 1299-D for corporations, Income Tax Form 1299-C for individuals, or Income Tax Form 1299-A for partnerships and S corporations. For further questions, please contact IDOR for additional information.

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