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HB 3068

Relating to community corrections.

2025 Regular Session Introduced by Jason Kropf

Illinois small businesses can claim a tax credit for hiring new full-time workers: up to $2,500 per employee, $3,500 for returning citizens, in a second incentive period ending 2028.

In committee upon adjournment.
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Bill Summary · HB 3068

HB 3068 — Small Business Job Creation Tax Credit (summary)

Status: Rule 19(a) / Re‑referred to Rules Committee
Introduced: Feb 2025 (primary sponsor: Rep. Curtis J. Tarver, II)
Latest action: House Amendment No. 1 filed 3/7/2025; amendment adopted in Revenue & Finance Committee 3/20/2025.

Purpose / Intent

To extend and modify the Small Business Job Creation Tax Credit program by creating a second series of incentive periods (post‑2010 program) to encourage small employers to hire new full‑time workers — with targeted incentives for “returning citizens” (formerly incarcerated Illinois residents).

Key provisions (as introduced)

  • Creates a second series of annual “incentive periods” beginning July 1, 2025 and ending June 30, 2031 (one‑year periods running July 1–June 30).
  • Sets the “basic wage” threshold for the second series at $20/hour (or equivalent salary).
  • Defines “new employee” as a net increase in full‑time Illinois employees hired during an incentive period who earn at least the basic wage; excludes prior employees and major owners.
  • Establishes per‑employee credit limits:
    • Generally, credit may not exceed $2,500 per new employee.
    • If the new employee is a “returning citizen” (Illinois resident formerly incarcerated), the credit may not exceed $3,500.
  • Allocates aggregate program caps (introduced version): $20,000,000 total for new employees other than returning citizens and $5,000,000 for returning citizens.
  • Adds recapture authority: the Department may recapture credits if the employee is terminated by the taxpayer within one year after the credit is awarded.
  • Effective immediately.

House Amendment No. 1 (filed 3/7/2025) — principal changes

  • Shortens the second series end date: replaces “2031” with “2028” (so incentive periods would end June 30, 2028 rather than 2031).
  • Revises the statutory language on aggregate funding/caps. The amendment text, as filed, replaces the previously stated $20M/$5M aggregate split with lower numeric limits, appearing to set aggregate caps at:
    • $7,500,000 for new employees other than returning citizens, and
    • $2,500,000 for returning citizens.
    • The amendment also contains transitional language limiting the amount of credit that can be awarded to a returning citizen under the non‑returning pool to no more than $2,500.
  • Note: the amendment text filed with the Clerk is partially truncated/ambiguous in places (includes stray "$50,000,000. If applications"), so final chamber print may clarify the exact aggregate totals.

Who is affected

  • Primary beneficiaries: small businesses (applicants with no more than 50 full‑time employees) operating in Illinois that hire new full‑time workers who meet the basic wage requirement.
  • Targeted group: “returning citizens” (formerly incarcerated Illinois residents) are eligible for enhanced per‑employee credit in the introduced version and receive prioritized set‑aside under the program’s aggregate caps.
  • State agencies: Department of Commerce and Economic Opportunity (administration, certification, and recapture).

Procedural / timeline notes

  • Introduced and read in February 2025; assigned to Revenue & Finance Committee and Tax Credit & Incentives Subcommittee. Committee amendment adopted 3/20/2025; bill was placed on 2nd reading and subsequently re‑referred to Rules Committee (Rule 19(a)) on 4/11/2025.
  • Because Amendment No. 1 is currently pending/referred, final program funding amounts and end date depend on whether the amendment is adopted in final form and whether any further edits are made.

If you want, I can:
- Compare the introduced vs. amended statutory text side‑by‑side, or
- Draft a short one‑page explanation for small businesses about how to apply and the likely availability of credits under current caps.

Compiled from official sources — confirm details with the bill’s official record.

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