SMALL BUSINESS-INCENTIVES
If the bill is enacted, it is expected to enhance job creation by providing financial incentives for small businesses to hire more workers, particularly targeting returning citizens who face challenges in re-entering the job market. The total amount available for these tax credits would be $50 million for employees who are not returning citizens and an additional $5 million specifically allocated for returning citizens. The bill's provisions are designed to support economic recovery and ensure that vulnerable populations have improved access to employment opportunities.
House Bill 4646 aims to amend the Small Business Job Creation Tax Credit Act to extend incentives for hiring new employees in Illinois. The legislation sets out a new incentive period starting on July 1, 2024, and ending on June 30, 2030. During this period, the basic wage for eligible new positions will be established at $15 per hour. Employers can receive tax credits of up to $2,500 for each new employee hired, which increases to $3,500 if the employee is classified as a 'returning citizen'—defined as someone who has previously been incarcerated and is now re-entering the workforce as a new employee in Illinois.
There may be points of contention regarding the bill, particularly around the sustainability of funding for these tax credits and their long-term impact on the state's budget. Some lawmakers might express concerns about whether the incentives are effective in truly stimulating job creation or if they merely shift employment from one business to another without increasing overall employment levels. Additionally, there could be debates about how effectively the program will support returning citizens compared to other groups, and whether the defined criteria for eligible employees creates any unintended barriers to accessing the tax credits.