SPRINGFIELD, Ill. — Illinois’ small businesses may be able to offset the state’s new minimum wage increase with a special tax credit.
The Illinois Department of Revenue said in a news release Friday that businesses and nonprofit organizations with 50 or less full-time employees can utilize the Minimum Wage Credit to offset up to 25% of wage increases that went into effect on January 1st.
Illinois’ minimum wage was bumped up to $9.25 from $8.25 an hour at the beginning of the new year. The minimum wage will continue to increase to $15 an hour over the next six years.
The IDOR said small businesses can claim the new credit on their quarterly Illinois Withholding Income Tax Returns.
The percentage allowed each proceeding year will decrease before sunsetting in 2026 for most small businesses.
Eligible businesses can claim the new tax credit by filing Form IL-941.
The last time Illinois’ minimum wage was increased was in 2010, when it was raised to $8.25 an hour.
For more information about Illinois’ Minimum Wage Tax Credit, click HERE.
