Businesses Can Quickly and Easily Apply Online to Receive $2,500 Tax Credit for New Hires
PEORIA ï¿½ Illinois Department of Commerce and Economic Opportunity (DCEO) Director Warren Ribley today visited IT360, a Peoria-based IT consulting firm, to highlight a new $2,500 tax credit that is available to small businesses that create new jobs between July 1, 2010 and June 30, 2011. The Illinois Small Business Job Creation Tax Credit, proposed and signed into law by Governor Pat Quinn earlier this year, targets the foundation of Illinois' economy ï¿½ the 500,000 small businesses across the state.
ï¿½The Small Business Job Creation Tax Credit gives businesses an additional incentive to hire right now and expand,ï¿½ said DCEO Director Warren Ribley. ï¿½We must continue doing everything we can to build our economy, and this is an innovative way to put thousands of people to work across Illinois while helping businesses boost their bottom line.ï¿½
The $2,500 tax credit is available to businesses with 50 or fewer employees (including all locations) as of June 30, 2010. Ninety-five percent of Illinois businesses have fewer than 50 employees. New small businesses hiring their first Illinois employee(s) may also qualify for the credit. Those businesses that began hiring on July 1 may apply for the credit retroactively.
ï¿½The stateï¿½s small business tax credit has enabled us to hire a full-time systems engineer, strengthen our team and position ourselves for additional work,ï¿½ said Matt Machala, vice president of Peoria-based IT360, Inc., an approximately four year-old company currently employing eight people. ï¿½We may add another employee soon to meet the demand of our steadily growing business. Every bit helps in this difficult economic time, and we certainly appreciate how the stateï¿½s small business tax credit will help our small business grow.ï¿½
David Mills, owner of David Mills CPA and IT360ï¿½s accountant, emphasized the value of these types of incentives particularly for small business owners, ï¿½With businesses struggling with profitability, itï¿½s important for the CPA community to reinforce to their clients the tax breaks that are available to them. This credit helps defray other costs of hiring an employee, and it was a factor when I added to my staff.ï¿½
The Illinois Department of Commerce and Economic Opportunity created a simple, easy-to-use online registration system for small business owners at JobsTaxCredit.illinois.gov. Eligible companies should register new positions online as soon as a new, full-time Illinois employee is hired and begins providing services. After one year, companies can use the website to enter substantiating data and apply for their tax credit certificate. Tax credit certificates will be awarded beginning July 1, 2011. The total amount of credits issued is capped at $50 million, which will support 20,000 jobs.
For eligibility requirements for the Illinois Small Business Job Creation Tax Credit, and to register a new position, visit JobsTaxCredit.illinois.gov.