Tax Credit for Small Businesses to Create Chicago Jobs
Posted on March 25, 2010
The measure cleared the House without any debate a day earlier, so now the bill goes on to Governor Pat Quinn.
According to ChicagoPressRelease.com, the credit proposed by Quinn earlier this month aims to help get Illinois’ struggling economy back on track by offering small businesses a $2,500 tax credit for each new hire they make in the next year.
Qualifying employers would be limited to those with 50 or fewer employees. And there’s a $50 million cap on the total number of credits that can be awarded.
Quinn estimates 20,000 new jobs could be created from the incentive, although some business advocates have questioned whether a small credit would actually prompt employers to create jobs.
The state Department of Commerce and Economic Opportunity will handle the application process for handing out the credits.
State Sen. Michael Noland (D-Elgin) sponsored the bill and says it could create 20,000 jobs and will affect 95 percent of Illinois businesses. He says the bill received bi-partisan support.
One Republican, however, is not in favor of the bill. Senate Minority Leader Christine Rodogno (R-Lemont) voted against the bill in committee, but voted for it before the full Senate. She says a $2,500 tax credit is not enough to entice businesses to hire new employees.