Small businesses that create new jobs between July 1, 2010 and June 30, 2011 may be able to take advantage of a $2,500 tax credit for new hires. The Illinois Small Business Job Creation Tax Credit, proposed and signed into law by Governor Pat Quinn earlier this year, targets the 500,000 small businesses across the state.

The $2,500 tax credit is available to businesses with 50 or fewer employees (including all locations) as of June 30, 2010. Ninety-five percent of Illinois businesses have fewer than 50 employees. New small businesses hiring their first Illinois employee(s) may also qualify for the credit. Those businesses that began hiring on July 1 may apply for the tax credit retroactively.

The Illinois Department of Commerce and Economic Opportunity created an online registration system for small business owners at  JobsTaxCredit.illinois.gov. Eligible companies should register new positions online as soon as a new, full-time Illinois employee is hired and begins providing services. After one year, companies can use the website to enter substantiating data and apply for their tax credit certificate.

Tax credit certificates will be awarded beginning July 1, 2011. The total amount of credits issued is capped at $50 million, which will support 20,000 jobs.  For eligibility requirements for the Illinois Small Business Job Creation Tax Credit, and to register a new position, visit JobsTaxCredit.illinois.gov.

Click here for the full news release from the Governors Office.