SB3535

Illinois SB3535 creates an income tax credit for small employers to offset costs of paid leave.

Illinois SB3535 amends the Illinois Income Tax Act to create an income tax credit for eligible small employers. This credit applies to employers with 50 or fewer full-time equivalent employees who are subject to the Paid Leave for All Workers Act. The credit equals the amount paid to employees as required paid leave, up to 40 hours per employee per year. The credit cannot reduce a taxpayer's liability below zero and any excess credit can be carried forward to future taxable years. The bill aims to alleviate the financial burden on small businesses due to the Paid Leave for All Workers Act.