104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB1799
 
Introduced 1/28/2025, by Rep. Tom Weber
 
SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/235 new
    Amends the Illinois Income Tax Act. Provides that a taxpayer is entitled to an income tax credit for each person who is (i) 62 years of age or older during the taxable year and (ii) employed by the taxpayer at a location in this State for not less than 185 days during the taxable year. Provides that the credit may be carried forward. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.


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A BILL FOR
 
HB1799LRB104 03976 HLH 14000 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by 
5adding Section 235 as follows:
 
6    (35 ILCS 5/235 new)
7    Sec. 235. Credit for wages paid to persons 62 years of age 
8or older.
9    (a) For each taxable year beginning on or after January 1, 
102026, each taxpayer is entitled to a credit against the tax 
11imposed by subsections (a) and (b) of Section 201 of this Act 
12in the amount of $2,500 for each person who is (i) 62 years of 
13age or older during the taxable year and (ii) employed by the 
14taxpayer at a location in this State for not less than 185 days 
15during the taxable year. For partners, shareholders of 
16Subchapter S corporations, and owners of limited liability 
17companies, if the liability company is treated as a 
18partnership for purposes of federal and State income taxation, 
19there shall be allowed a credit under this Section to be 
20determined in accordance with the determination of income and 
21distributive share of income under Sections 702 and 704 and 
22Subchapter S of the Internal Revenue Code. 
23    (b) In no event shall a credit under this Section reduce 
 
 
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1the taxpayer's liability to less than zero. If the amount of 
2the credit exceeds the tax liability for the year, the excess 
3may be carried forward and applied to the tax liability of the 
45 taxable years following the excess credit year. The tax 
5credit shall be applied to the earliest year for which there is 
6a tax liability. If there are credits for more than one year 
7that are available to offset a liability, the earlier credit 
8shall be applied first. 
9    (c) This Section is exempt from the provisions of Section 
10250. 
 
11    Section 99. Effective date. This Act takes effect upon 
12becoming law.