104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3017
 
Introduced 2/6/2025, by Rep. Dan Swanson
 
SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/217.2 new
    Amends the Illinois Income Tax Act. Creates an income tax credit for each employer taxpayer in an amount equal to $5,000 for each military spouse hired by the taxpayer during the taxable year. Effective immediately.


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A BILL FOR
 
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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 217.2 as follows:
 
6    (35 ILCS 5/217.2 new)
7    Sec. 217.2. Credit for wages paid to a military spouse.
8    (a) For taxable years ending on or after December 31, 
92026, each taxpayer that is an employer is entitled to a credit 
10against the tax imposed by subsections (a) and (b) of Section 
11201 of this Act in an amount equal to $5,000 for each military 
12spouse hired by the taxpayer during the taxable year.
13    (b) For partners, shareholders of Subchapter S 
14corporations, and owners of limited liability companies, if 
15the liability company is treated as a partnership for the 
16purposes of federal and State income taxation, there shall be 
17allowed a credit under this Section to be determined in 
18accordance with the determination of income and distributive 
19share of income under Sections 702 and 704 and Subchapter S of 
20the Internal Revenue Code. 
21    (c) In no event shall a credit under this Section reduce 
22the taxpayer's liability to less than zero. If the amount of 
23the credit exceeds the tax liability for the year, the excess 
 
 
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1may be carried forward and applied to the tax liability of the 
25 taxable years following the excess credit year. The tax 
3credit shall be applied to the earliest year for which there is 
4a tax liability. If there are credits for more than one year 
5that are available to offset a liability, the earlier credit 
6shall be applied first. 
7    (d) As used in this Section, "military spouse" means the 
8spouse of an active duty member of the Armed Forces of the 
9United States, a member of the Illinois National Guard, or a 
10member of any reserve component of the Armed Forces of the 
11United States. 
12    (e) This Section is exempt from the provisions of Section 
13250. 
 
14    Section 99. Effective date. This Act takes effect upon 
15becoming law.