The Naperville Area Chamber of Commerce (NACC) has joined many chambers around the state for the “Chambers All-In” initiative to advocate for key bills that will best support our business community moving toward economic recovery.* One major bill in play in which we are actively encouraging is HB5320 Minimum Wage Credit ** which would expand the minimum wage tax to off-set the increase of minimum wage.
The Illinois General Assembly passed PA 101-0001 in 2019 which set incremental increases to the minimum wage (see increments and dates in chart below). This same piece of legislation provided for a minimum wage tax credit to support businesses and not-for-profits with 50 or less full-time equivalent employees. This credit equates to the percentage of the difference between the minimum wage in 2019 ($8.25) and the incremental increases. In the original PA 101-0001 legislation, the tax credit percentage decreased each year with the credit set at 5% percent by 2025. The chart below demonstrates the timetable for the incremental minimum wage increase, the percent difference of the tax credit in the original legislation, and what percentage rates are proposed in the HB5320 Minimum Wage Credit bill.
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