Businesses Qualify for $67 Million in Tax Credits | Southwest Illinois News and Events

Southwest Illinois News is a weekly news publication spotlighting attractions, events, entertainment, tourism, jobs and business developments in Southwestern Illinois

Business News

Illinois Hotels

Alton, IL

Belleville, IL

Cahokia Mounds

Casinos

Collinsville,IL

East St. Louis

Fairview Heights,IL

Fort de Chartres

Fort Massac, IL

Grafton, IL

Lady of the Snows

Lebanon,IL

Lewis & Clark

Scott Air Force Base

Waterloo, IL

Wood River, IL

"If it's happening in St. Louis, it's on St. Louis Front Page."

Southwest Illinois News is
designed & hosted by the
Moore Design Group.

How To Reach Us:
St. Louis Front Page
3832 S. Broadway Street
St. Louis, MO 63118

Voice: 314-771-0200
Fax: 314-771-0300

To advertise, contact:
advertising@slfp.com

To submit news, contact:
editor@slfp.com

IN THE NEWS

Illinois Businesses Qualify for $67 Million in Tax Credits
SPRINGFIELD, IL, (SWI-News.com), January 20, 2011 - Illinois businesses qualified for $67 million in income tax credits after hiring individuals covered through the Work Opportunity Tax Credit (WOTC). The federal incentive reduces an employer's cost of doing business while helping those most in need gain valuable work experience. IDES administers the federal program.

"This valuable program helps a business owner improve the bottom line and offers a hand up to those who want to make a better life for themselves and their family," Illinois Department of Employment Security (IDES) Director Jay Rowell said. "This is real progress in helping businesses compete, assisting individuals to find gainful employment, and improving the Illinois economy. It also shows that employers increasingly view IDES as an employment agency."

The WOTC incentives allow business owners to keep more of their money by hiring from historically disenfranchised groups. In 2011, the majority of the tax credit involved businesses who hired an individual receiving state financial assistance. In this way, the program benefits the state as a whole, as new jobs increase the likelihood that the state support will be reduced or no longer needed.

More than 27,000 individuals were hired under the WOTC program in 2011. Tax incentives range from $2,400 in one year to $9,600 over two years, depending on the new hire. The $67 million in savings represents 2011 activity that would be entered in federal tax returns in 2012.

The specific categories include individuals receiving Temporary Assistance for Needy Families; qualified military veterans; qualified ex-felons; a designated community resident who lives in a renewal zone; vocational rehabilitation referrals with a physical or mental impairment and who have received vocational or employment training; summer youth employees; qualified food stamp recipient; and a qualified supplemental security income beneficiary.

Employers claim the federal tax credit using IRS Form 5884. Looking at 2012, businesses can apply for WOTC certification for a new hire in three steps. Pre-screen individuals using IRS Form 8850, called the "pre-Screening Notice & Certification Request for Work Opportunity Credit." Then, complete the ETA Form 9061, called the "Individual Characteristics Form." Finally, mail the original, signed forms to IDES' WOTC Unit within 28 days of the new hire's start state. It is recommended that copies of the form be kept with the business. Forms and details are available at www.ides.illinois.gov/wotc

Illinois to Boost Tax Relief for Working Families
SPRINGFIELD, IL, (SWI-News.com), January 15, 2011 - Governor Pat Quinn has signed major legislation to increase tax relief for working families across Illinois. Senate Bill 400 doubles the state's Earned Income Tax Credit (EITC) over two years, saving low-income workers an extra $105 million per year.

The new law also benefits all Illinois taxpayers by improving the value of the personal exemption and indexing it to inflation. Throughout the fall veto session, Governor Quinn insisted that tax relief for working families be part of the package.

"One of the best ways to stimulate the local economy is to put more money in the pockets of working families," Governor Pat Quinn said. "This law is a win for workers, a win for families and a win for employers that will support job growth across Illinois for years to come."

Senate Bill 400 provides the largest increase in Illinois' EITC since its inception in 2000, by phasing in a 5 percent increase over two years. The bill boosts the state's EITC from its current level at 5 percent of federal EITC, to 7.5 percent in tax year 2012 and 10 percent of federal EITC in tax year 2013. More than 2.5 million state residents benefited from the Illinois EITC in 2010.

Under the new law, a single mother with one child, earning minimum wage ($12,800 a year), will save $154 on her taxes. A married couple with three children earning $30,000 a year will save $199 on their taxes this year.

Uniquely pro-growth and pro-family, EITC is available only to those with earned income and provides incentive to work as well as much-needed tax relief to the lowest-income families. EITC also boosts local economies through increased consumer demand. A 2006 Brookings Institution study found that every dollar a family saves through this tax credit translates into $1.58 of activity in local economies.

SB 400 was sponsored by Sen. Toi Hutchinson (D-Olympia Fields) and House Majority Leader Barbara Flynn Currie (D-Chicago.)

"The tax relief contained in Senate Bill 400 will benefit every person who files a tax return in Illinois," Sen. Hutchinson said. "Working families for too long have had to deal with increasing expenses and stagnant wages. This legislation is an opportunity to provide meaningful tax relief."

"A fair tax policy should help low-income working families, and our expansion of the state's EITC will do just that," Rep. Currie said. "This credit rewards work, and will help families keep a roof over their head and food on the table."

Senate Bill 400 also improves the value of the standard personal exemption for all taxpayers in Illinois and ties its continued growth to the rate of inflation. The personal exemption will increase by $50 (to $2,050) in tax year 2012, and the value of the exemption will be indexed to the cost of living adjustment each tax year thereafter. The personal exemption change benefits all taxpayers, regardless of income.

Senate Bill 400 goes into effect June 1.

Illinois Earns $42.8 Million Federal Grant in Race to the Top Competition
SPRINGFIELD, IL, (SWI-News.com), December 29, 2011 - Illinois has earned a $42.8 million federal grant under the U.S. Department of Education's Race to the Top (RTTT) program to help bolster Science Technology Engineering and Math (STEM) education across the state and other work to close the achievement gap.

Nearly $21 million will go directly to the state's local districts that agree to accelerate education reform. Illinois is one of seven states in the nation to be awarded a portion of the $200 million in federal funds, which will be distributed through the 2013-14 school year to benefit K-12 students.

In a release, State Superintendent of Education Christopher A. Koch said, "Education in Illinois is undergoing a sea change aimed to ensure new generations of students become better prepared for college and careers. These federal funds will help support the many efforts under way so that children across the state will have greater access to a quality education."

Illinois applied for the grant and was declared eligible for funds as one of nine finalists in the second round of RTTT. The grant application reflects the priorities of the previous two RTTT applications and ongoing work under the state's current reform agenda, which includes implementing the new rigorous Common Core Learning Standards in Math and English Language Arts, advancing teacher and principal effectiveness and providing educators with data that can better inform and improve classroom instruction. Among the initiatives is advancing STEM programs of study and developing a system of induction and mentoring for STEM educators.

Other projects to be funded include the oversight and delivery of professional development to help align district curriculum to the new Common Core Learning Standards in English Language Arts and Math and high quality student assessments that can be used to measure student growth and be incorporated into educator evaluations.

Funds will also be used to bolster ongoing development of a data system that supports personalized learning and access to high quality resources. Specifically, Illinois has been selected to be one of the first states to implement the Shared Learning Infrastructure, a multi-state collaborative to develop a next-generation technology system that will enable teachers to easily find high-quality and highly-customizable curriculum and classroom resources aligned to the Common Core Standards.

The six other states awarded funds under the third Race to the Top Competition are: Arizona, Colorado, Kentucky, Louisiana, New Jersey, and Pennsylvania.

Advertisement

The St. Louis Front Page and Southwest Illinois News is owned and maintained by the Moore Design Group for the sole purpose of disseminating news and information about the Metropolitan St. Louis area. Text or graphics may not be copied, rewritten or distributed in any manner whatsoever without written permission. For more information, contact editor@slfp.com All rights reserved world wide © 1996 - 2012 Moore Design Group.

Advertisers