Tax Credit Programs
The State of Illinois has a broad portfolio of tax credit programs to help accelerate the growth of new and existing businesses across the state. These programs are open to all eligible businesses in Illinois (not exclusively businesses owned by veterans):
- Illinois Angel Investment Program – Investors may claim 25% of an investment into a qualified Illinois business venture – up to $2 million in investment for a $500,000 credit. For more information on qualified business ventures, visit the Illinois Angel Investment Program homepage.
- Small Business Jobs Creation Tax Credit Program – Under this program, small businesses that create one or more new, full-time positions that meet the eligibility requirements can receive a $2,500 tax credit. Eligible jobs are those that pay at least $10/hour or $18,200/annually and the position must be sustain for one full year. For more information, visit the program’s homepage.
- R&D Tax Credit – Companies that are looking to expand research activities in Illinois are now eligible for a 6.5% income tax credit on qualified R&D costs. The credit was recently extended through tax years ending on or before December 31, 2015. For more information on qualifying expenses and claiming the R&D Tax Credit, contact the Illinois Department of Revenue’s Business Hotline at 217-524-4772.
- Work Opportunity Tax Credit (WOTC) - expired December 31, 2013 – WOTC is a federal program that provides tax savings to employers who hire people from certain target groups, including the hiring of veterans. Tax credits are available from $1,200 up to $9,600 depending on the category. For more information, visit IDES’ WOTC homepage.
- Veteran’s Tax Credit – Employers can earn an income tax credit of up to $5,000 annually for hiring qualified unemployed OEF/OIF veterans. The credit is 20% of the total wages paid up to $5,000 to every veteran hired after July 1, 2012. Alternatively, employers can also earn an income tax credit of up to $1,200 annually for hiring veterans of Operation Desert Storm, Operation Enduring Freedom, or Operation Iraqi Freedom. The credit is 10% of the total wages paid to every veteran hired after January 1, 2010. To file or receive more info, please visit the Illinois Department of Revenue(IDOR) webpage or contact IDOR’s Business Hotline at 217-524-4772.
- Economic Development for a Growing Economy (EDGE) Tax Credit – The EDGE program offers a tax incentive to encourage companies to locate or expand operations in Illinois when there is active consideration of a competing location in another state. To qualify a company must provide documentation that attests to the fact of competition among a competing state, and agree to make an investment of capital improvements and create full time jobs in Illinois. For more detailed information, visit the EDGE Tax Credit homepage or call the Dept. of Commercial and Economic Opportunity at 217-524-8449.
For additional resources available from DCEO's Bureau of Business Development
For additional resources available from DCEO's Bureau of Entrepreneurship, Innovation, & Technology.