Building on bipartisan efforts to support business growth in Illinois, Governor JB Pritzker signed legislation today to create a new apprenticeship tax credit and extend the research and development tax credit into 2026.
Beginning January 1, 2020 and sunsetting on December 31, 2024, the new apprenticeship tax credit will cover up to $3,500 of qualified education expenses incurred by employers on behalf of a qualifying apprentice. To increase equity, an additional $1,500 credit may be awarded if the company’s principal place of business is in an underserved area or the qualifying apprentice resides in an underserved area. The program is capped at $5 million per year and is a DCEO-administered certificate-based program.
The new law also extends the research and development tax credit from a sunset of December 31, 2021 to December 31, 2026. The R&D credit is equal to 6.5% of qualifying expenditures for increasing research activities in Illinois and is nonrefundable against corporate income taxes.
Senate Bill 1591 is effective immediately.
