CHICAGO – April 13, 2010. Governor Pat Quinn today signed a bill into law that will help boost Illinois’ economy by creating up to 20,000 jobs over the next year at small businesses across the state. The new law is part of Governor Quinn’s continuing mission to help employers retain and generate jobs in Illinois during this difficult economic time.
“Small businesses are essential to the Illinois economy and it’s crucial that state government find fresh and creative ways of working with entrepreneurs, who will lead the charge toward economic recovery,” said Governor Quinn. “This tax credit will help our small business owners and operators to grow by creating 20,000 jobs over the next year.”
Senate Bill 1578 creates the Illinois Small Business Job Creation Tax Credit. The $2,500 credit will be available to businesses with 50 or fewer employees that hire new, full-time Illinois employees during a 12-month period beginning July 1. Ninety-five percent of Illinois businesses have fewer than 50 employees.
The legislation passed the General Assembly unanimously and was sponsored by Sen. Michael Noland (D-Elgin) and House Speaker Michael Madigan (D-Chicago).
To qualify for the credit, a new job must be sustained for at least one year and pay at least $25,000 annually. Eligible companies can apply for the credit online and will be issued a tax credit certificate beginning July 1, 2011. Applications for the credit may be submitted as soon as a new, full-time Illinois employee is hired and begins providing services. The total amount of credits issued is capped at $50 million.
Calculation of the net increase in the number of Illinois employees is based on the employer’s number of Illinois employees as of June 30, 2010. The determination of whether an employer has 50 or fewer employees will include all employees in every location, which includes both in Illinois and out-of-state employment totals. Related businesses will be treated as one business for the determination.
Governor Quinn was joined at the event by area small business owners, including: Michelle Ringold, President and Chief Executive Officer of Ringold Financial; Shon Harris, President of LiveWire Electrical Systems; Norma Williams, President of NJW Companies; Jimmy Akintode, President of Ujamaa Construction; Kim Heath; President of Midwest Environmental Service Group; Harlan Karp, President of SouthBlock Development and Management; Vicky Linko, Owner of Funk Linko Inc; and Rich Beinhauer, President of M&R Precision Machining.