The legacy tax credit allows eligible businesses to receive $100 per year for each year they have been headquartered in Illinois. This credit is applicable for taxable years beginning on or after January 1, 2024. Additionally, businesses can earn tax credits for each resident employee who has been continuously employed for six months, further incentivizing job retention. Such provisions create potential benefits not only for employers but also for the state’s economy, by promoting job creation and stability among local businesses.
SB2075, introduced by Senator Seth Lewis, amends the Illinois Income Tax Act to create several tax credits aimed at fostering business growth within the state. Specifically, the bill introduces a legacy tax credit for businesses headquartered in Illinois, an employee tax credit, and a collective bargaining employee tax credit. The legislation is designed to encourage businesses to establish and maintain operations in Illinois by offering financial incentives based on the length of time a business has been headquartered in the state and the employment stability of its workforce.
However, while the bill aims to stimulate economic activity, there may be points of contention regarding the effectiveness and fairness of these credits. Critics might argue that the tax incentives disproportionately favor larger companies or those already established in Illinois, potentially sidelining smaller or newer businesses that may not qualify for these credits. Furthermore, concerns might arise about the long-term fiscal implications of implementing such credits, especially if they do not lead to a corresponding increase in state revenue or job growth in the long run. Stakeholders advocating for a more equitable approach may call for balanced measures that address the needs of all businesses in the state.