HB2847 amends the Illinois Income Tax Act to create a new income tax credit for employers that hire and pay wages to individuals certified by the Illinois Department of Human Services as having a developmental disability or a severe mental illness. For taxable years beginning on or after January 1, 2025, the credit equals 25% of wages paid to each qualified employee, capped at $6,000 in wages per employee per year. The bill is intended to incentivize employment of people with disabilities and serious mental illness by reducing employers’ state income tax liability.
To claim the credit, a taxpayer must apply to the Department of Human Services for certification of the employee, and DHS must issue a certification letter and adopt rules for the process. The credit can offset individual and corporate income tax liability, may be carried forward for up to five years if unused, and is passed through to partners or S corporation shareholders under existing tax rules. The bill is effective immediately upon enactment.
Impact
The bill would add a new Section 246 to the Illinois Income Tax Act, creating a state tax expenditure that directly reduces income tax revenue for qualifying employers. It would also assign the Department of Human Services responsibility for certifying eligible employees and establishing administrative rules, thereby creating a new state-level verification process tied to employment of people with developmental disabilities or severe mental illness. Employers, partnerships, and S corporations that hire certified workers would be the primary beneficiaries, while the state would forgo some income tax collections.
Sentiment
Based on the bill text and available context, the measure appears generally supportive and incentive-based, with a policy goal of expanding employment opportunities for people with disabilities and severe mental illness. There is no recorded committee debate or vote history in the provided materials, so no formal opposition or support can be measured from proceedings. The bill’s framing suggests a positive reception among advocates for disability employment and workforce inclusion.
Contention
The main potential points of contention are administrative burden, eligibility verification, and fiscal cost. Employers may need to navigate a DHS certification process before claiming the credit, and DHS must create rules to determine who qualifies as having a developmental disability or severe mental illness. Legislators concerned about revenue impacts may question the size of the credit, the five-year carryforward, and whether the incentive is targeted enough to justify the loss in tax revenue. No specific objections or supporters are identified in the provided transcripts or votes.