Figuring out how state taxes work is often a challenge for entrepreneurs and small business owners in Illinois. Overestimating or underestimating your company’s tax liability may create a difficult financial burden and make it harder to succeed. Fortunately, Illinois offers several different tax credit programs to help both established and new businesses operating in the state. If you meet the eligibility requirements, you may be able to reduce your business taxes.
You may find information on small business tax credits on the State of Illinois website. Most programs have specific requirements business owners must meet in order to qualify for the financial benefits. For example, the Small Business Jobs Creation Tax Credit Program offers a potential $2,500 tax credit to small business owners. In order to qualify, a small business must create at least one full-time position that pays a minimum of $10 per hour or $18,200 annually. The created job must exist for at least one year.
Another state program, the Economic Development for a Growing Economy Tax Credit exists to encourage out-of-state business owners to relocate to or expand their operations in Illinois. Because the goal of the EDGE program is to make Illinois attractive to small business owners, an entrepreneur must be considering locations in other states prior to choosing Illinois in order to qualify.
The Illinois Angel Investment program may help you attract investors for your small business. This program gives investors the chance to qualify for a tax credit based on the money they invest in qualified businesses.
This general information on business tax credits is intended to educate and should not be taken as legal advice.