State Senator Don DeWitte (R-St. Charles) is joining the Illinois Department of Revenue to remind small businesses that as the higher minimum wage starts to take effect, a tax credit is available to them beginning this year.
On January 1, the first wave of minimum wage increases took effect, increasing the wage from $8.25 an hour to $9.25 an hour. In an effort to help offset these increased costs, small businesses are eligible for the Minimum Wage Credit, giving them a maximum credit of 25 percent of the difference between the new minimum wage and what each employee was paid previously. The percentage allowed each proceeding year will decrease before sunsetting in 2026.
“The new $15 minimum wage law will certainly have far-reaching implications on our local, small businesses,” said Sen. DeWitte. “While many businesses will face hardships complying with the new minimum wage law, I hope they take advantage of this tax credit to provide them with some relief.”
Businesses and nonprofits with 50 full-time equivalent employees or less are eligible for the tax credit, which they can now begin to claim on their quarterly Illinois Withholding Income Tax Returns.
For more information on the Minimum Wage Credit and how to calculate this credit, visit tax.illinois.gov.