JOB CREATION PILOT PROGRAM ACT

Illinois General Assembly - Full Text of SB3544

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104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB3544

Introduced 2/5/2026, by Sen. Chapin Rose

SYNOPSIS AS INTRODUCED:

New Act
35 ILCS 5/704A

Creates the Job Creation Zone Pilot Program Act. Sets forth the
boundaries of the job creation zone. Provides that applicants that pledge
to hire at least 5 new employees at a designated location within the job
creation zone are eligible for credits against their obligation to pay
over withholding taxes under the Illinois Income Tax Act. Authorizes an
applicant to request a credit award under the Act by making a formal
written request or application with the Department of Commerce and
Economic Opportunity. Specifies that the amount of the credit may not
exceed (i) 50% of the incremental income tax attributable to each new
employee during the calendar year in which the new employee is hired and
for the first 2 calendar years after the new employee is hired and (ii) 25%
of the incremental income tax attributable to each new employee during the
third and fourth calendar years after the new employee is hired. Grants the
Department of Commerce and Economic Opportunity rulemaking powers to
implement and enforce the Act. Amends the Illinois Income Tax Act to make
conforming changes. Effective immediately.
LRB104 19274 HLH 32720 b

A BILL FOR

SB3544
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1

AN ACT concerning State government.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 1.
Short title.
This Act may be cited as the
Job
5
Creation Zone Pilot Program Act.

6

Section 5.
Definitions.
As used in this Act:
7

"Agreement" means an agreement between the taxpayer and
8
the Department for credit awards under this Act.
9

"Department" means the Department of Commerce and Economic
10
Opportunity.
11

"Incremental income tax" means the total amount withheld
12
during the reporting period from the compensation of new
13
employees under Article 7 of the Illinois Income Tax Act
14
arising from employment at a project that is the subject of an
15
agreement.
16

"New employee" means a full-time employee who (i) is first
17
employed by a taxpayer in the project that is the subject of an
18
agreement under this Act, (ii) is hired after the taxpayer
19
enters into the tax credit agreement, (iii) receives
20
compensation from the taxpayer that is at least 125% of the
21
State minimum wage during the entire time he or she is
22
considered a new employee, and (iv) is eligible for
23
employer-sponsored group health insurance benefits and

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retirement benefits as a condition of his or her employment
2
with the taxpayer. The term "new employee" does not include:
3

(1) an employee of the taxpayer who performs a job
4

that was previously performed by another employee, if that
5

job existed for at least 6 months before hiring the
6

employee; notwithstanding this paragraph, an employee may
7

be considered a new employee if the employee performs a
8

job that was previously performed by an employee who was:
9

(A) treated under the agreement as a new employee;
10

and
11

(B) promoted by the taxpayer to another job;
12

(2) an employee of the taxpayer who was previously
13

employed in Illinois by a related member of the taxpayer
14

and whose employment was shifted to the taxpayer after the
15

taxpayer entered into the agreement under this Act; or
16

(3) a child, grandchild, parent, or spouse, other than
17

a spouse who is legally separated from the individual, of
18

any individual who has a direct or an indirect ownership
19

interest of at least 5% in the profits, capital, or value
20

of the taxpayer.
21

"Project" means employment in one or more of the following
22
fields: manufacturing, technology, research, science,
23
mathematics, engineering, construction, energy,
24
bioprocessing, or agriculture.
25

"Related member" means a person that, with respect to the
26
taxpayer during any portion of the taxable year, is any one of

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the following:
2

(1) an individual stockholder, if the stockholder and
3

the members of the stockholder's family (as defined in
4

Section 318 of the Internal Revenue Code) own directly,
5

indirectly, beneficially, or constructively, in the
6

aggregate, at least 50% of the value of the taxpayer's
7

outstanding stock;
8

(2) a partnership, estate, or trust and any partner or
9

beneficiary, if the partnership, estate, or trust, and its
10

partners or beneficiaries own directly, indirectly,
11

beneficially, or constructively, in the aggregate, at
12

least 50% of the profits, capital, stock, or value of the
13

taxpayer;
14

(3) a corporation, and any party related to the
15

corporation in a manner that would require an attribution
16

of stock from the corporation to the party or from the
17

party to the corporation under the attribution rules of
18

Section 318 of the Internal Revenue Code, if the taxpayer
19

owns directly, indirectly, beneficially, or constructively
20

at least 50% of the value of the corporation's outstanding
21

stock;
22

(4) a corporation and any party related to that
23

corporation in a manner that would require an attribution
24

of stock from the corporation to the party or from the
25

party to the corporation under the attribution rules of
26

Section 318 of the Internal Revenue Code, if the

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corporation and all such related parties own in the
2

aggregate at least 50% of the profits, capital, stock, or
3

value of the taxpayer; or
4

(5) a person to or from whom there is attribution of
5

stock ownership in accordance with Section 1563(e) of the
6

Internal Revenue Code, except, for purposes of determining
7

whether a person is a related member under this paragraph,
8

20% shall be substituted for 5% wherever 5% appears in
9

Section 1563(e) of the Internal Revenue Code.

10

Section 10.
Zone created.
A job creation zone pilot
11
program is hereby created. The job creation zone shall have
12
the following boundaries:
13

Beginning at the intersection of US-51 and State Route
14

9; then East to the Indiana State Line; then South along
15

the border between Illinois and Indiana; then West along
16

Interstate 64 to US-51; then North along US-51 to the
17

Point of Beginning; the job creation zone also includes
18

all of the territory within 15 miles of the North, South,
19

and West borders set forth in this Section.

20

Section 15.
Tax credit awards; application.
21

(a) The Department shall make credit awards under this Act
22
to foster job creation within the job creation zone. To be
23
eligible for credits under this Act, the applicant must pledge
24
to hire at least 5 new employees at a designated location

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within the job creation zone.
2

(b) An applicant may request a credit award by formal
3
written letter of request or by formal application to the
4
Department, in which the applicant states its intent to hire
5
at least 5 new employees at a designated location within the
6
job creation zone. As circumstances require, the Department
7
may require a formal application from an applicant and a
8
formal letter of request for assistance.
9

(c) The Department may not make a credit award for a
10
project at a location that was used by a different employer
11
during the previous year if the applicant will employ the same
12
number of employees or fewer employees (including new
13
employees) at that project location.
14

(d) The Department may make credit awards for withholding
15
reporting periods beginning on or after January 1, 2026.

16

Section 25.
Tax credit awards; amount.
Any taxpayer that
17
has been issued a certificate of exemption by the Department
18
under this Act may claim a credit against its obligation to pay
19
over withholding under Section 704A of the Illinois Income Tax
20
Act. The amount of the credit may not exceed (i) 50% of the
21
incremental income tax attributable to each new employee
22
during the calendar year in which the new employee is hired and
23
for the first 2 calendar years after the new employee is hired
24
and (ii) 25% of the incremental income tax attributable to
25
each new employee during the third and fourth calendar years

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after the new employee is hired.

2

Section 30.
Rulemaking.
The Department may adopt rules to
3
implement and enforce the provisions of this Act.

4

Section 900.
The Illinois Income Tax Act is amended by
5
changing Section 704A as follows:

6

(35 ILCS 5/704A)
7

Sec. 704A.
Employer's return and payment of tax withheld.
8

(a) In general, every employer who deducts and withholds
9
or is required to deduct and withhold tax under this Act on or
10
after January 1, 2008 shall make those payments and returns as
11
provided in this Section.
12

(b) Returns. Every employer shall, in the form and manner
13
required by the Department, make returns with respect to taxes
14
withheld or required to be withheld under this Article 7 for
15
each quarter beginning on or after January 1, 2008, on or
16
before the last day of the first month following the close of
17
that quarter.
18

(c) Payments. With respect to amounts withheld or required
19
to be withheld on or after January 1, 2008:
20

(1) Semi-weekly payments. For each calendar year, each
21

employer who withheld or was required to withhold more
22

than $12,000 during the one-year period ending on June 30
23

of the immediately preceding calendar year, payment must

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be made:
2

(A) on or before each Friday of the calendar year,
3

for taxes withheld or required to be withheld on the
4

immediately preceding Saturday, Sunday, Monday, or
5

Tuesday;
6

(B) on or before each Wednesday of the calendar
7

year, for taxes withheld or required to be withheld on
8

the immediately preceding Wednesday, Thursday, or
9

Friday.
10

Beginning with calendar year 2011, payments made under
11

this paragraph (1) of subsection (c) must be made by
12

electronic funds transfer.
13

(2) Semi-weekly payments. Any employer who withholds
14

or is required to withhold more than $12,000 in any
15

quarter of a calendar year is required to make payments on
16

the dates set forth under item (1) of this subsection (c)
17

for each remaining quarter of that calendar year and for
18

the subsequent calendar year.
19

(3) Monthly payments. Each employer, other than an
20

employer described in items (1) or (2) of this subsection,
21

shall pay to the Department, on or before the 15th day of
22

each month the taxes withheld or required to be withheld
23

during the immediately preceding month.
24

(4) Payments with returns. Each employer shall pay to
25

the Department, on or before the due date for each return
26

required to be filed under this Section, any tax withheld

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or required to be withheld during the period for which the
2

return is due and not previously paid to the Department.
3

(d) Regulatory authority. The Department may, by rule:
4

(1) Permit employers, in lieu of the requirements of
5

subsections (b) and (c), to file annual returns due on or
6

before January 31 of the year for taxes withheld or
7

required to be withheld during the previous calendar year
8

and, if the aggregate amounts required to be withheld by
9

the employer under this Article 7 (other than amounts
10

required to be withheld under Section 709.5) do not exceed
11

$1,000 for the previous calendar year, to pay the taxes
12

required to be shown on each such return no later than the
13

due date for such return.
14

(2) Provide that any payment required to be made under
15

subsection (c)(1) or (c)(2) is deemed to be timely to the
16

extent paid by electronic funds transfer on or before the
17

due date for deposit of federal income taxes withheld
18

from, or federal employment taxes due with respect to, the
19

wages from which the Illinois taxes were withheld.
20

(3) Designate one or more depositories to which
21

payment of taxes required to be withheld under this
22

Article 7 must be paid by some or all employers.
23

(4) Increase the threshold dollar amounts at which
24

employers are required to make semi-weekly payments under
25

subsection (c)(1) or (c)(2).
26

(e) Annual return and payment. Every employer who deducts

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and withholds or is required to deduct and withhold tax from a
2
person engaged in domestic service employment, as that term is
3
defined in Section 3510 of the Internal Revenue Code, may
4
comply with the requirements of this Section with respect to
5
such employees by filing an annual return and paying the taxes
6
required to be deducted and withheld on or before the 15th day
7
of the fourth month following the close of the employer's
8
taxable year. The Department may allow the employer's return
9
to be submitted with the employer's individual income tax
10
return or to be submitted with a return due from the employer
11
under Section 1400.2 of the Unemployment Insurance Act.
12

(f) Magnetic media and electronic filing. With respect to
13
taxes withheld in calendar years prior to 2017, any W-2 Form
14
that, under the Internal Revenue Code and regulations
15
promulgated thereunder, is required to be submitted to the
16
Internal Revenue Service on magnetic media or electronically
17
must also be submitted to the Department on magnetic media or
18
electronically for Illinois purposes, if required by the
19
Department.
20

With respect to taxes withheld in 2017 and subsequent
21
calendar years, the Department may, by rule, require that any
22
return (including any amended return) under this Section and
23
any W-2 Form that is required to be submitted to the Department
24
must be submitted on magnetic media or electronically.
25

The due date for submitting W-2 Forms shall be as
26
prescribed by the Department by rule.

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(g) For amounts deducted or withheld after December 31,
2
2009, a taxpayer who makes an election under subsection (f) of
3
Section 5-15 of the Economic Development for a Growing Economy
4
Tax Credit Act for a taxable year shall be allowed a credit
5
against payments due under this Section for amounts withheld
6
during the first calendar year beginning after the end of that
7
taxable year equal to the amount of the credit for the
8
incremental income tax attributable to full-time employees of
9
the taxpayer awarded to the taxpayer by the Department of
10
Commerce and Economic Opportunity under the Economic
11
Development for a Growing Economy Tax Credit Act for the
12
taxable year and credits not previously claimed and allowed to
13
be carried forward under Section 211(4) of this Act as
14
provided in subsection (f) of Section 5-15 of the Economic
15
Development for a Growing Economy Tax Credit Act. The credit
16
or credits may not reduce the taxpayer's obligation for any
17
payment due under this Section to less than zero. If the amount
18
of the credit or credits exceeds the total payments due under
19
this Section with respect to amounts withheld during the
20
calendar year, the excess may be carried forward and applied
21
against the taxpayer's liability under this Section in the
22
succeeding calendar years as allowed to be carried forward
23
under paragraph (4) of Section 211 of this Act. The credit or
24
credits shall be applied to the earliest year for which there
25
is a tax liability. If there are credits from more than one
26
taxable year that are available to offset a liability, the

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earlier credit shall be applied first. Each employer who
2
deducts and withholds or is required to deduct and withhold
3
tax under this Act and who retains income tax withholdings
4
under subsection (f) of Section 5-15 of the Economic
5
Development for a Growing Economy Tax Credit Act must make a
6
return with respect to such taxes and retained amounts in the
7
form and manner that the Department, by rule, requires and pay
8
to the Department or to a depositary designated by the
9
Department those withheld taxes not retained by the taxpayer.
10
For purposes of this subsection (g), the term taxpayer shall
11
include taxpayer and members of the taxpayer's unitary
12
business group as defined under paragraph (27) of subsection
13
(a) of Section 1501 of this Act. This Section is exempt from
14
the provisions of Section 250 of this Act. No credit awarded
15
under the Economic Development for a Growing Economy Tax
16
Credit Act for agreements entered into on or after January 1,
17
2015 may be credited against payments due under this Section.
18

(g-1) For amounts deducted or withheld after December 31,
19
2024, a taxpayer who makes an election under the Reimagining
20
Energy and Vehicles in Illinois Act shall be allowed a credit
21
against payments due under this Section for amounts withheld
22
during the first quarterly reporting period beginning after
23
the certificate is issued equal to the portion of the REV
24
Illinois Credit attributable to the incremental income tax
25
attributable to new employees and retained employees as
26
certified by the Department of Commerce and Economic

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Opportunity pursuant to an agreement with the taxpayer under
2
the Reimagining Energy and Vehicles in Illinois Act for the
3
taxable year. The credit or credits may not reduce the
4
taxpayer's obligation for any payment due under this Section
5
to less than zero. If the amount of the credit or credits
6
exceeds the total payments due under this Section with respect
7
to amounts withheld during the quarterly reporting period, the
8
excess may be carried forward and applied against the
9
taxpayer's liability under this Section in the succeeding
10
quarterly reporting period as allowed to be carried forward
11
under paragraph (4) of Section 211 of this Act. The credit or
12
credits shall be applied to the earliest quarterly reporting
13
period for which there is a tax liability. If there are credits
14
from more than one quarterly reporting period that are
15
available to offset a liability, the earlier credit shall be
16
applied first. Each employer who deducts and withholds or is
17
required to deduct and withhold tax under this Act and who
18
retains income tax withholdings this subsection must make a
19
return with respect to such taxes and retained amounts in the
20
form and manner that the Department, by rule, requires and pay
21
to the Department or to a depositary designated by the
22
Department those withheld taxes not retained by the taxpayer.
23
For purposes of this subsection (g-1), the term taxpayer shall
24
include taxpayer and members of the taxpayer's unitary
25
business group as defined under paragraph (27) of subsection
26
(a) of Section 1501 of this Act. This Section is exempt from

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the provisions of Section 250 of this Act.
2

(g-2) For amounts deducted or withheld after December 31,
3
2024, a taxpayer who makes an election under the Manufacturing
4
Illinois Chips for Real Opportunity (MICRO) Act shall be
5
allowed a credit against payments due under this Section for
6
amounts withheld during the first quarterly reporting period
7
beginning after the certificate is issued equal to the portion
8
of the MICRO Illinois Credit attributable to the incremental
9
income tax attributable to new employees and retained
10
employees as certified by the Department of Commerce and
11
Economic Opportunity pursuant to an agreement with the
12
taxpayer under the Manufacturing Illinois Chips for Real
13
Opportunity (MICRO) Act for the taxable year. The credit or
14
credits may not reduce the taxpayer's obligation for any
15
payment due under this Section to less than zero. If the amount
16
of the credit or credits exceeds the total payments due under
17
this Section with respect to amounts withheld during the
18
quarterly reporting period, the excess may be carried forward
19
and applied against the taxpayer's liability under this
20
Section in the succeeding quarterly reporting period as
21
allowed to be carried forward under paragraph (4) of Section
22
211 of this Act. The credit or credits shall be applied to the
23
earliest quarterly reporting period for which there is a tax
24
liability. If there are credits from more than one quarterly
25
reporting period that are available to offset a liability, the
26
earlier credit shall be applied first. Each employer who

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deducts and withholds or is required to deduct and withhold
2
tax under this Act and who retains income tax withholdings
3
this subsection must make a return with respect to such taxes
4
and retained amounts in the form and manner that the
5
Department, by rule, requires and pay to the Department or to a
6
depositary designated by the Department those withheld taxes
7
not retained by the taxpayer. For purposes of this subsection,
8
the term taxpayer shall include taxpayer and members of the
9
taxpayer's unitary business group as defined under paragraph
10
(27) of subsection (a) of Section 1501 of this Act. This
11
Section is exempt from the provisions of Section 250 of this
12
Act.
13

(h) An employer may claim a credit against payments due
14
under this Section for amounts withheld during the first
15
calendar year ending after the date on which a tax credit
16
certificate was issued under Section 35 of the Small Business
17
Job Creation Tax Credit Act. The credit shall be equal to the
18
amount shown on the certificate, but may not reduce the
19
taxpayer's obligation for any payment due under this Section
20
to less than zero. If the amount of the credit exceeds the
21
total payments due under this Section with respect to amounts
22
withheld during the calendar year, the excess may be carried
23
forward and applied against the taxpayer's liability under
24
this Section in the 5 succeeding calendar years. The credit
25
shall be applied to the earliest year for which there is a tax
26
liability. If there are credits from more than one calendar

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year that are available to offset a liability, the earlier
2
credit shall be applied first. This Section is exempt from the
3
provisions of Section 250 of this Act.
4

(i) Each employer with 50 or fewer full-time equivalent
5
employees during the reporting period may claim a credit
6
against the payments due under this Section for each qualified
7
employee in an amount equal to the maximum credit allowable.
8
The credit may be taken against payments due for reporting
9
periods that begin on or after January 1, 2020, and end on or
10
before December 31, 2027. An employer may not claim a credit
11
for an employee who has worked fewer than 90 consecutive days
12
immediately preceding the reporting period; however, such
13
credits may accrue during that 90-day period and be claimed
14
against payments under this Section for future reporting
15
periods after the employee has worked for the employer at
16
least 90 consecutive days. In no event may the credit exceed
17
the employer's liability for the reporting period. Each
18
employer who deducts and withholds or is required to deduct
19
and withhold tax under this Act and who retains income tax
20
withholdings under this subsection must make a return with
21
respect to such taxes and retained amounts in the form and
22
manner that the Department, by rule, requires and pay to the
23
Department or to a depositary designated by the Department
24
those withheld taxes not retained by the employer.
25

For each reporting period, the employer may not claim a
26
credit or credits for more employees than the number of

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employees making less than the minimum or reduced wage for the
2
current calendar year during the last reporting period of the
3
preceding calendar year. Notwithstanding any other provision
4
of this subsection, an employer shall not be eligible for
5
credits for a reporting period unless the average wage paid by
6
the employer per employee for all employees making less than
7
$55,000 during the reporting period is greater than the
8
average wage paid by the employer per employee for all
9
employees making less than $55,000 during the same reporting
10
period of the prior calendar year.
11

For purposes of this subsection (i):
12

"Compensation paid in Illinois" has the meaning ascribed
13
to that term under Section 304(a)(2)(B) of this Act.
14

"Employer" and "employee" have the meaning ascribed to
15
those terms in the Minimum Wage Law, except that "employee"
16
also includes employees who work for an employer with fewer
17
than 4 employees. Employers that operate more than one
18
establishment pursuant to a franchise agreement or that
19
constitute members of a unitary business group shall aggregate
20
their employees for purposes of determining eligibility for
21
the credit.
22

"Full-time equivalent employees" means the ratio of the
23
number of paid hours during the reporting period and the
24
number of working hours in that period.
25

"Maximum credit" means the percentage listed below of the
26
difference between the amount of compensation paid in Illinois

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to employees who are paid not more than the required minimum
2
wage reduced by the amount of compensation paid in Illinois to
3
employees who were paid less than the current required minimum
4
wage during the reporting period prior to each increase in the
5
required minimum wage on January 1. If an employer pays an
6
employee more than the required minimum wage and that employee
7
previously earned less than the required minimum wage, the
8
employer may include the portion that does not exceed the
9
required minimum wage as compensation paid in Illinois to
10
employees who are paid not more than the required minimum
11
wage.
12

(1) 25% for reporting periods beginning on or after
13

January 1, 2020 and ending on or before December 31, 2020;
14

(2) 21% for reporting periods beginning on or after
15

January 1, 2021 and ending on or before December 31, 2021;
16

(3) 17% for reporting periods beginning on or after
17

January 1, 2022 and ending on or before December 31, 2022;
18

(4) 13% for reporting periods beginning on or after
19

January 1, 2023 and ending on or before December 31, 2023;
20

(5) 9% for reporting periods beginning on or after
21

January 1, 2024 and ending on or before December 31, 2024;
22

(6) 5% for reporting periods beginning on or after
23

January 1, 2025 and ending on or before December 31, 2025.
24

The amount computed under this subsection may continue to
25
be claimed for reporting periods beginning on or after January
26
1, 2026 and:

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(A) ending on or before December 31, 2026 for
2

employers with more than 5 employees; or
3

(B) ending on or before December 31, 2027 for
4

employers with no more than 5 employees.
5

"Qualified employee" means an employee who is paid not
6
more than the required minimum wage and has an average wage
7
paid per hour by the employer during the reporting period
8
equal to or greater than his or her average wage paid per hour
9
by the employer during each reporting period for the
10
immediately preceding 12 months. A new qualified employee is
11
deemed to have earned the required minimum wage in the
12
preceding reporting period.
13

"Reporting period" means the quarter for which a return is
14
required to be filed under subsection (b) of this Section.
15

(j) For reporting periods beginning on or after January 1,
16
2023, if a private employer grants all of its employees the
17
option of taking a paid leave of absence of at least 30 days
18
for the purpose of serving as an organ donor or bone marrow
19
donor, then the private employer may take a credit against the
20
payments due under this Section in an amount equal to the
21
amount withheld under this Section with respect to wages paid
22
while the employee is on organ donation leave, not to exceed
23
$1,000 in withholdings for each employee who takes organ
24
donation leave. To be eligible for the credit, such a leave of
25
absence must be taken without loss of pay, vacation time,
26
compensatory time, personal days, or sick time for at least

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the first 30 days of the leave of absence. The private employer
2
shall adopt rules governing organ donation leave, including
3
rules that (i) establish conditions and procedures for
4
requesting and approving leave and (ii) require medical
5
documentation of the proposed organ or bone marrow donation
6
before leave is approved by the private employer. A private
7
employer must provide, in the manner required by the
8
Department, documentation from the employee's medical
9
provider, which the private employer receives from the
10
employee, that verifies the employee's organ donation. The
11
private employer must also provide, in the manner required by
12
the Department, documentation that shows that a qualifying
13
organ donor leave policy was in place and offered to all
14
qualifying employees at the time the leave was taken. For the
15
private employer to receive the tax credit, the employee
16
taking organ donor leave must allow for the applicable medical
17
records to be disclosed to the Department. If the private
18
employer cannot provide the required documentation to the
19
Department, then the private employer is ineligible for the
20
credit under this Section. A private employer must also
21
provide, in the form required by the Department, any
22
additional documentation or information required by the
23
Department to administer the credit under this Section. The
24
credit under this subsection (j) shall be taken within one
25
year after the date upon which the organ donation leave
26
begins. If the leave taken spans into a second tax year, the

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employer qualifies for the allowable credit in the later of
2
the 2 years. If the amount of credit exceeds the tax liability
3
for the year, the excess may be carried and applied to the tax
4
liability for the 3 taxable years following the excess credit
5
year. The tax credit shall be applied to the earliest year for
6
which there is a tax liability. If there are credits for more
7
than one year that are available to offset liability, the
8
earlier credit shall be applied first.
9

Nothing in this subsection (j) prohibits a private
10
employer from providing an unpaid leave of absence to its
11
employees for the purpose of serving as an organ donor or bone
12
marrow donor; however, if the employer's policy provides for
13
fewer than 30 days of paid leave for organ or bone marrow
14
donation, then the employer shall not be eligible for the
15
credit under this Section.
16

As used in this subsection (j):
17

"Organ" means any biological tissue of the human body that
18
may be donated by a living donor, including, but not limited
19
to, the kidney, liver, lung, pancreas, intestine, bone, skin,
20
or any subpart of those organs.
21

"Organ donor" means a person from whose body an organ is
22
taken to be transferred to the body of another person.
23

"Private employer" means a sole proprietorship,
24
corporation, partnership, limited liability company, or other
25
entity with one or more employees. "Private employer" does not
26
include a municipality, county, State agency, or other public

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employer.
2

This subsection (j) is exempt from the provisions of
3
Section 250 of this Act.
4

(k) For reporting periods beginning on or after January 1,
5
2025 and before January 1, 2027, an employer may claim a credit
6
against payments due under this Section for amounts withheld
7
during the first reporting period to occur after the date on
8
which a tax credit certificate is issued for a non-profit
9
theater production under Section 10 of the Live Theater
10
Production Tax Credit Act. The credit shall be equal to the
11
amount shown on the certificate, but may not reduce the
12
taxpayer's obligation for any payment due under this Article
13
to less than zero. If the amount of the credit exceeds the
14
total amount due under this Article with respect to amounts
15
withheld during the first reporting period to occur after the
16
date on which a tax credit certificate is issued, the excess
17
may be carried forward and applied against the taxpayer's
18
liability under this Section for reporting periods that occur
19
in the 5 succeeding calendar years. The excess credit shall be
20
applied to the earliest reporting period for which there is a
21
payment due under this Article. If there are credits from more
22
than one reporting period that are available to offset a
23
liability, the earlier credit shall be applied first. The
24
Department of Revenue, in cooperation with the Department of
25
Commerce and Economic Opportunity, shall adopt rules to
26
enforce and administer the provisions of this subsection.

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(l) A taxpayer who is issued a certificate under the Local
2
Journalism Sustainability Act for a taxable year shall be
3
allowed a credit against payments due under this Section as
4
provided in that Act.
5

(m) An employer may claim a credit against payments due
6
under this Section for amounts withheld during the first
7
calendar year ending after the date on which a certificate of
8
exemption was issued under the Job Creation Zone Pilot Program
9
Act. The credit shall be equal to the amount shown on the
10
certificate but may not reduce the taxpayer's obligation for
11
any payment due under this Section to less than zero. If the
12
amount of the credit exceeds the total payments due under this
13
Section with respect to amounts withheld during the calendar
14
year, the excess may be carried forward and applied against
15
the taxpayer's liability under this Section in the 5
16
succeeding calendar years. The credit shall be applied to the
17
earliest year for which there is a tax liability. If there are
18
credits from more than one calendar year that are available to
19
offset a liability, the earlier credit shall be applied first.
20
This subsection (m) is exempt from the provisions of Section
21
250 of this Act.

22
(Source: P.A. 103-592, Article 40, Section 40-900, eff.
23
6-7-24; 103-592, Article 45, Section 45-10, eff. 6-7-24;
24
104-417, eff. 8-15-25.)

25

Section 999.
Effective date.
This Act takes effect upon
26
becoming law.

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