Illinois Department of Revenue

Illinois Small Business Jobs Creation Tax Credit/Certificates from DCEO

The Illinois Small Business Jobs Creation Tax Credit is only available to businesses and non-profits that registered on or before June 30, 2011, with the Department of Commerce and Economic Opportunity (DCEO). DCEO oversees the program and issues the credit in the form of a credit certificate after application by a qualified employer. For more information, see DCEO.

When must I claim the credit on my IL-941?

First, DCEO will send you your credit certificate. Then you must claim the credit in the reporting period in which you receive it.

For example: If you receive your credit certificate in July 2011, and you are
  • a quarterly filer, you will claim the credit on your 3rd quarter Form IL-941 (due October 31, 2011).
  • an annual filer, you will claim the credit on your 2011 Form IL-941 (due January 31, 2012).

How do I claim the credit on my IL-941?

On Line 3, enter the total of the following:
  • the full amount of credit from your DCEO credit certificate, plus
  • the total of any payments made throughout the reporting period, and
  • any overpayment from a previous reporting period.

What if my withholding liability is less than the credit and other payments made for the reporting period?

Write the amount of your overpayment on Line 5. On your return for the next reporting period, you will include this amount on Line 3.

Any unused credit can be carried forward for up to 5 years by the employer and cannot be refunded.

Do I still withhold income tax from my employees?

Yes, you still withhold Illinois Income Tax from your employees.  However, instead of paying it to the Illinois Department of Revenue, you will retain the tax withheld up to the amount of the credit certificate you received from DCEO. Note: You still must complete all applicable withholding tax forms.
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