Illinois R&D Tax Credit Program Changes 2019
Recently, the General Assembly approved a bill that would extend the life of Illinois’ R&D tax credit. For innovative industries, this means there are more opportunities to create apprenticeships and educational programs; which means more job openings.
The Senate Bill 1591 has already secured final approval from the General Assembly and awaits the Governor’s Signature to become law.
The new bill will see:
- A 6.5% credit on increases in in-state Research and R&D expenses
- The R&D credit will be extended until 2027;
- The apprenticeship credit of up to $5,000 per worker will have a state-wide cap of $5 million a year.
In addition, the credit will only be eligible for qualified businesses in the state of Illinois that employ an apprentice who meets the requirements. Requirements to qualify as an apprentice include being;
- A resident of Illinois;
- At least 16 years of age;
- Enrolled in a full-time apprenticeship program registered with the U.S. Department of Labor;
- Employed in Illinois.
As of 2019, California and New York also have similar tax credits, however, they are permanent, offering firms doing business in those states the predictability and consistency needed to manage operations.
Indiana’s R&D tax credit legislation is also outstanding as it offers an astounding generous 15% tax break on new investments.
To find out more about your state’s legislation on the R&D Tax Credit contact us here today.