HB1188

Illinois HB1188 provides tax credits for employers with 250 or fewer employees who give raises to qualified employees.

HB1188 amends the Illinois Income Tax Act to allow employers with 250 or fewer full-time equivalent employees to claim a credit against withholding payments for each qualified employee. A qualified employee is defined as one who receives a raise, has a post-raise annual salary of at least $31,200, and continues employment during the reporting period. The credit is calculated based on the difference between the employee's compensation before and after the raise, with specific percentages applied to different periods. The credit can be carried forward to offset future tax liabilities.