The minimum hourly wage in the state of Illinois is set to nearly double over the next 6 years, but there is a tax credit that can help small businesses adjust.
Small business in the state of Illinois with fewer than 50 employees are eligible. These business can claim this credit if they paid employees at the minimum wage during the preceeding calendar year, and their employees' wages are being increased in accordance with the law by the passage of the year.
To determine the amount of credit that one can claim, subtract the amount of compensation paid at minimum wage this year from the amount of compensation paid at minimum wage last year.
In 2020, eligible parties can claim a tax credit of 25% of that total.
Read the bulletin from the state.
