2025 Schedule 1299-I, Income Tax Credits Information and Worksheets

Legal reference: 35 ILCS 5/231 

For taxable years beginning on or after January 1, 2020, and beginning before January 1, 2027, the employer of one or more qualifying apprentices shall be allowed a credit against income tax for qualified education expenses incurred on behalf of a qualifying apprentice. This credit cannot be carried forward.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the Apprenticeship Education Expense tax credit (Code 0160) on Step 3 of:

• Schedule 1299-A – credits from DCEO certificates in Column E and credits distributed to you in Column F.
• Schedule 1299-C – credits from DCEO certificates in Column E and credits distributed to you in Column F.
• Schedule 1299-D – credits from DCEO certificates in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DCEO certificate and Schedule(s) K-1-P you received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/233

For taxable years beginning on or after January 1, 2023, employers who employ eligible individuals in recovery from a substance use disorder or mental illness in part-time and full-time positions within Illinois shall be allowed a credit against the qualified employer’s income tax liability. This credit cannot be carried forward.

Contact DHS for more information.

Following the specific Schedule 1299 instructions, enter the Recovery and Mental Health tax credit (Code 0180) on Step 3 of:

Schedule 1299-A – credits from DHS certificates in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from DHS certificates in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from DHS certificates in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DHS certificate and Schedule(s) K-1-P you received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/209

“Qualifying TECH-PREP programs” are those certified by the Illinois State Board of Education.

You may take this credit, for tax years ending on or after June 30, 1995, if

• you are primarily engaged in manufacturing, and
• you have direct payroll expenses for qualifying cooperative secondary school youth vocational programs in Illinois, or you pay for personal services performed by a TECH-PREP student or instructor who would be subject to withholding if they were employed by you and no other credit is claimed by the actual employer.

You may not take this credit for programs with national standards that have been or will be approved by the U.S. Department of Labor, Bureau of Apprenticeship Training, or any federal agency succeeding to the responsibilities of that bureau.

Add the amount of direct payroll expenses for cooperative secondary school youth vocational programs and the amount paid to a TECH-PREP student or instructor employed by you for personal services performed. Enter the total amount on the line below.

Multiply this amount by 20 percent (.20).      

Following the specific Schedule 1299 instructions, enter the TECH-PREP Youth Vocational Programs tax credit (Code 2000) on Step 3 of:

Schedule 1299-C – credits from the line above in Column E.
Schedule 1299-D – credits from the line above in Column F.

This credit is not distributable or transferable.

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Legal reference: 35 ILCS 5/210

You qualify for this credit, for tax years ending on or after June 30, 1995, if 

• you are primarily engaged in manufacturing, and 

• you have an on-site facility dependent care assistance program that is in Illinois and on the premises of your workplace.

Enter the amount of your expenses, reported under the IRC Section 129(d)(7), that were used for on-site dependent care on the line below.

Multiply this amount by 5 percent (.05).    

Note: This credit cannot be claimed if the five percent (.05) Employee Child Care Credit is claimed. 

Following the specific Schedule 1299 instructions, enter the Dependent Care Assistance Program tax credit (Code 2200) on Step 3 of:

Schedule 1299-C – credits from the total above in Column E.
Schedule 1299-D – credits from the total above in Column F.

This credit is not distributable or transferable.

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Legal reference: 35 ILCS 5/213

For taxable years beginning on or after January 1, 2004 and prior to January 1, 2039, film producers of qualified projects shall be allowed a credit.

For accredited productions commencing on or after January 1, 2009, and before July 1, 2025, this credit is equal to 30 percent of qualified expenditures including Illinois production spending and Illinois labor, and an additional 15 percent on salaries paid to individuals who live in geographic areas of high poverty or high unemployment.

For accredited productions commencing on or after July 1, 2025, this credit is equal to:

• 35% of the Illinois production spending for the use of tangible personal property or the expenses to acquire services from vendors in Illinois and for Illinois labor expenditures generated by the employment of Illinois residents;
• 30% of the wages paid to nonresidents for services performed on an accredited production;
• 15% of the Illinois labor expenditures generated by the employment of residents of geographic areas of high poverty or high unemployment;
• 5% of the Illinois labor expenditures generated by the employment of Illinois residents for services performed for an accredited production in one or more Illinois counties outside of Cook, DuPage, Kane, Lake, McHenry, and Will Counties;
• 5% of the Illinois production spending for television series relocating to Illinois from another jurisdiction; and
• 5% of the Illinois production spending for productions certified as green.

To qualify for this credit you must have

• applied for and received a Tax Credit Certificate (indicating the amount of credit) from DCEO, or
• received a certificate from DCEO showing that a credit was transferred to you. A transfer of this credit may be made by the taxpayer earning the credit within one year after the credit is awarded in accordance with rules adopted by DCEO.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the Film Production Services tax credit (Code 5000) on Step 3 of:

Schedule 1299-A – credits from DCEO certificates in Column E, credits distributed to you in Column F, and credits transferred to you in Column G.
Schedule 1299-C – credits from DCEO certificates in Column E, and credits distributed and transferred to you in Column F.
Schedule 1299-D – credits from DCEO certificates in Column F, credits distributed to you in Column G, and credits transferred to you in Column H.

Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/210.5

“Start-up costs” include planning, site-preparation, construction, renovation, or acquisition of a child care facility.

You may take this credit if

• you file Form IL-1120, or Form IL-990-T taxed as a corporation, and
• you provide a child care facility, located in Illinois, for the children of your employees.

Note: You must keep records documenting all costs for which the credit is being claimed.

This is a two-part income tax credit.

Part One – For tax years ending on or after December 31, 2007, a credit of 30 percent (.30) of the “start-up costs” spent by you to provide a child care facility for the children of your employees is allowed.

Enter the total amount of “start-up costs” to provide the child care facility. Multiply this amount by 30 percent (.30), and enter the result.  

Part Two – For tax years ending on or after December 31, 2000, a credit of five percent (.05) of the annual amount paid by you to provide the child care facility for your employees’ children is allowed.

Enter the annual amount paid to provide the child care facility. Multiply this amount by five percent (.05), and enter the result. 

Note: The five percent (.05) credit cannot be claimed if the Dependent Care Assistance Program Tax Credit is claimed.

Following the specific Schedule 1299 instructions, enter the Employee Child Care tax credit (Code 5040) total of Part One and Part Two in Column F on Step 3 of Schedule 1299-D.

This credit is not distributable or transferable.

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Legal reference: 35 ILCS 5/201(f)

“Qualified property” is property that

• is tangible, whether new or used, including buildings and structural components of buildings;
• is depreciable according to Internal Revenue Code (IRC) Section 167;
• has a useful life of four or more years as of the date placed in service in Illinois; and
• is acquired by purchase as defined in IRC Section 179(d).

Qualified property can be new or used but does not qualify for the Enterprise Zone Credit if it was previously used in Illinois in a manner that qualified for that credit or for the Replacement Tax Investment Credit on Form IL-477, Replacement Tax Investment Credits. Qualified property includes buildings and structural components of buildings that are real property. It does not include land or improvements to real property that are not a structural component of a building, such as landscaping, sewer lines, local access roads, fencing, parking lots, and other appurtenances.

Any improvement or addition made on or after the date the enterprise zone or river edge redevelopment zone was designated, or on or after the date the business was designated as a high impact business, is considered to be qualified property to the extent that the improvement or addition increases the adjusted basis of the property previously placed in service in Illinois and otherwise meets the requirements of qualified property.

For taxable years ending on or after July 1, 2006, you may take this credit if you

• placed qualified property in service in an Illinois enterprise zone within the tax year,
• placed it in service on or after the date the zone was officially designated as an enterprise zone, and
• continued to use the qualified property on the last day of your tax year.

Using the worksheet below and these instructions, figure your Enterprise Zone Investment credit to enter on your Schedule 1299.

Column A – Describe each item of qualified property you placed in service in an Illinois enterprise zone.

Column B – Enter the month and year each item of qualified property was placed in service in Illinois. An item is placed in service on the earlier of

• the date the item is placed in a condition or state of readiness and availability for its specifically assigned function, or
• the date the depreciation period of the item begins. (Generally, this will be the same date the item is placed in service for purposes of the federal depreciation deduction.)

Column C – If you are using the federal accelerated cost recovery system (ACRS) to depreciate the property, enter the ACRS class assigned to each item of qualified property. Property assigned to an ACRS class of less than four years is not qualified.

If you are not using the ACRS method to depreciate the property, enter the useful life assigned to the property for federal depreciation purposes. The useful life of the property when placed in service must be four or more years to qualify.

Column D – Indicate whether each item of qualified property is new or used. If the property was previously used, enter the abbreviation of the state where the property was located. If you are filing Schedule 1299-D or 1299-A and the property was previously used in Illinois, but not in a manner that qualified for this credit or for the Replacement Tax Investment Credit on Form IL-477, maintain a statement in your records to provide upon request.

Column E – Enter the name of the enterprise zone in which the property is used.

Note: Qualified enterprise zones are listed on the DCEO website.

Column F – For each item of property, enter the basis used to figure the depreciation deduction for federal income tax purposes. Generally, the basis will be the purchase price, plus any capital expenditures, minus any rebates and IRC Section 179 deductions. The basis is not reduced by depreciation, including bonus depreciation, except depreciation you were allowed to claim before the date you placed it in service in Illinois, or in an Illinois enterprise or river edge redevelopment zone.

Column G – If you placed property in service in an enterprise zone, the credit rate is .005.

Column H – Multiply each entry in Column F by the amount in Column G, and enter the result in Column H.

Line 4 – Follow the instructions on the worksheet.

Schedule 1299-A – credits from Line 4 above in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from Line 4 above in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from Line 4 above in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/201(f) 

For taxable years beginning on or after January 1, 2021, a taxpayer who has been awarded a credit certificate by DCEO is entitled to a credit. The amount of the credit shall be 50 percent (75 percent if the project is located in an underserved area) of the amount of the incremental income tax attributable to Enterprise Zone construction jobs credit employees employed in the course of completing an Enterprise Zone construction jobs project. To qualify for the credit, you must have applied for and received a tax credit certificate from DCEO.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the Enterprise Zone Construction Jobs tax credit (Code 5120) on Step 3 of:

Schedule 1299-A – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from DCEO certificates in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/201(h-5) 

For taxable years beginning on or after January 1, 2021, a taxpayer who has been awarded a credit certificate by DCEO is entitled to a credit. The amount of the credit shall be 50 percent (75 percent if the project is located in an underserved area) of the amount of the incremental income tax attributable to High Impact Business construction jobs credit employees employed in the course of completing a High Impact Business construction jobs project. To qualify for the credit, you must have applied for and received a tax credit certificate from DCEO.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the High Impact Business Construction Jobs tax credit (Code 5160) on Step 3 of:

Schedule 1299-A – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from DCEO certificates in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/201(h) 

“Qualified property” is property that

• is tangible, whether new or used, including buildings and structural components of buildings;
• is depreciable according to Internal Revenue Code (IRC) Section 167;
• has a useful life of four or more years as of the date placed in service in Illinois; and
• is acquired by purchase as defined in IRC Section 179(d).

Qualified property, whether new or used, includes buildings and structural components of buildings that are real property. It does not include land or improvements to real property that are not a structural component of a building, such as landscaping, sewer lines, local access roads, fencing, parking lots, and other appurtenances.

Any improvement or addition made on or after the date the business was designated as a high impact business, is considered to be qualified property to the extent that the improvement or addition increases the adjusted basis of the property previously placed in service in Illinois and otherwise meets the requirements of qualified property.

For tax years ending on or after December 31, 1987, you may take this credit if

• your business has been designated as a high impact business,
• you placed qualified property in service on or after the date the business was designated as a high impact business and on or before the last day of your current tax year, and
• you continued to use the qualified property on the last day of your tax year.

You may not take this credit

• if the property is eligible for the Enterprise Zone Investment credit.
• until the minimum investments in qualified property required under Section 5.5 of the Illinois Enterprise Zone Act have been satisfied.

You should take the credit applicable to the minimum investments in the tax year in which the minimum investments were completed. Credit for additional investments (beyond the minimum investments) is available only in the year the qualified property is placed in service. 

Using the worksheet below and these instructions, figure your High Impact Business Investment credit to enter on your Schedule
1299.

Lines 1 through 3 – For each qualified property that you are claiming a credit:

Column A – Describe each item of qualified property placed in service in Illinois.

Column B – Enter the month and year each item of qualified property was placed in service in Illinois. An item is placed in service on the earlier of

• the date the item is placed in a condition or state of readiness and availability for its specifically assigned function, or
• the date the depreciation period of the item begins. (Generally, this will be the same date the item is placed in service for purposes of the federal depreciation deduction.)

Column C – If you are using the federal accelerated cost recovery system (ACRS) to depreciate the property, enter the ACRS class assigned to each item of qualified property. Property assigned to an ACRS class of less than four years is not qualified.

If you are not using the ACRS method to depreciate the property, enter the useful life assigned to the property for federal depreciation purposes. The useful life of the property when placed in service must be four or more years to qualify.

Column D – Indicate whether each item of qualified property is new or used. If the property was previously used, enter the abbreviation of the state where the property was located. In addition, if the property was previously used in Illinois, but not in a manner that qualified for this credit or for the Replacement Tax Investment Credit on Form IL-477, maintain a statement in your records to provide upon request.

Column E – For each item of property, enter the basis used to figure the depreciation deduction for federal income tax purposes. Generally, the basis will be the purchase price, plus any capital expenditures, minus any rebates and IRC Section 179 deductions. The basis is not reduced by depreciation, including bonus depreciation, except depreciation you were allowed to claim before the date you placed it in service
in Illinois.

Column F – Multiply each entry in Column E by .5 percent (.005) and enter the result in Column F.

Line 4 - Follow the instructions on the worksheet.

Following the specific Schedule 1299 instructions, enter the High Impact Business Investment tax credit (Code 5220) on Step 3 of:

Schedule 1299-C – credits from Line 4 above in Column E.
Schedule 1299-D – credits from Line 4 above in Column F.

This credit is not distributable or transferable.

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Legal reference: 35 ILCS 5/237

“Qualified property” is property that

1. is tangible, whether new or used, including buildings and structural components of buildings;
2. is depreciable pursuant to Section 167 of the Internal Revenue Code, except that “3-year property” as defined in Section 168(c)(2)(A) of that Code is not eligible for the credit;
3. is acquired by purchase as defined in Section 179(d) of the Internal Revenue Code;
4. is used at the site of the REV Illinois Project by the taxpayer; and
5. has not been previously used in Illinois in such a manner and by such a person as would qualify for the credit.

For tax years beginning on or after November 16, 2021, a credit for taxpayers against the tax imposed by subsections (a) and (b) of Section 201 for investment in qualified property which is placed in service at the site of a REV Illinois Project subject to an agreement between the taxpayer and DCEO pursuant to the Reimagining Energy and Vehicles in Illinois Act. The credit is equal to 0.5 percent of the basis for the
property. The credit is only available in the taxable year in which the property is placed in service. Any taxpayer qualifying for the REV Illinois Investment tax credit shall not be eligible for a Replacement Tax Investment tax credit, Enterprise Zone Investment tax credit, or High Impact Business Investment tax credit. The credit is nonrefundable, but may be carried forward for five years.

Contact DCEO for more information.

Using the worksheet below and these instructions, figure your REV Illinois Investment credit to enter on your Schedule 1299.

Column A – Describe each item of qualified property you placed in service in a REV Illinois Project.

Column B – Enter the month and year each item of qualified property was placed in service in Illinois. An item is placed in service on the earlier of

• the date the item is placed in a condition or state of readiness and availability for its specifically assigned function, or
• the date the depreciation period of the item begins. (Generally, this will be the same date the item is placed in service for purposes of the federal depreciation deduction.)

Column C – If you are using the federal accelerated cost recovery system (ACRS) to depreciate the property, enter the ACRS class assigned to each item of qualified property. Property assigned to an ACRS class of less than four years is not qualified.

If you are not using the ACRS method to depreciate the property, enter the useful life assigned to the property for federal depreciation purposes. The useful life of the property when placed in service must be four or more years to qualify.

Column D – Indicate whether each item of qualified property is new or used. If the property was previously used, enter the abbreviation of the state where the property was located. If you are filing Schedule 1299-D or 1299-A and the property was previously used in Illinois, but not in a manner that qualified for this credit or for the Replacement Tax Investment Credit on Form IL-477, maintain a statement in your records to
provide upon request.

Column E – Enter the location of the REV Illinois Project in which the property is used.

Column F – For each item of property, enter the basis used to figure the depreciation deduction for federal income tax purposes. Generally, the basis will be the purchase price, plus any capital expenditures, minus any rebates and IRC Section 179 deductions. The basis is not reduced by depreciation, including bonus depreciation, except depreciation you were allowed to claim before the date you placed it in service at the location of a REV Illinois Project.

Column G – If you placed property in service in a REV Illinois Project, the credit rate is .005.

Column H – Multiply each entry in Column F by the amount in Column G, and enter the result in Column H.

Line 4 – Follow the instructions on the worksheet.

Following the specific Schedule 1299 instructions, enter the REV Illinois Investment tax credit (Code 5230) on Step 3 of:

Schedule 1299-A – credits from Line 4 above in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from Line 4 above in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from Line 4 above in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of your REV Illinois Investment Credit Worksheet and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/236

For tax years beginning on or after January 1, 2025, a taxpayer who has entered into an agreement with DCEO under the Reimagining Energy and Vehicles in Illinois Act is entitled to a credit against the taxes imposed under subsections (a) and (b) of Section 201 of the IITA in an amount to be determined in the agreement. The determined credit amount is not to exceed the sum of (i) 75 percent of the incremental income tax attributable to new or retained employees at the applicant’s project (increased to 100 percent of the incremental income tax attributable to new or retained employees if the project is in an underserved area or an energy transition area) and (ii) 10 percent of the training costs of the new employees or certain retained employees (increased to 25 percent of the training costs for certain new employees based on their educational and training status). To qualify for the credit, you must have applied for and received a tax credit certificate from DCEO. The credit is nonrefundable, but may be carried forward for five years.

Note: Instead of claiming this credit against the taxes imposed under IITA Section 201(a) and (b), a taxpayer may elect to claim against its withholding tax obligation only that portion of the REV Illinois Credit that is calculated based on the incremental income tax attributable to new employees and retained employees.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the REV Illinois tax credit (Code 5240) on Step 3 of:

Schedule 1299-A – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from DCEO certificates in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/236 

For tax years beginning on or after January 1, 2025, a taxpayer may receive a tax credit for construction wages associated with a project that also qualified for a REV Illinois credit. The amount of the construction jobs credit shall be 50 percent (75 percent if the project is located in an underserved area or an energy transition area) of the amount of the incremental income tax attributable to construction wages in connection with the construction of the project facilities and paid to workers hired to construct the project. To qualify for the credit, you must have applied for and received a tax credit certificate from DCEO. The credit is nonrefundable, but may be carried forward for five years.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the REV Construction Jobs tax credit (Code 5250) on Step 3 of:

Schedule 1299-A – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from DCEO certificates in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/214

You may take this credit if

• you have made a donation under Section 7.28 of the Illinois Housing Development Act for the development of affordable housing in Illinois,
• you made the donation in a tax year ending on or after December 31, 2001, through a tax year ending on or before December 31, 2026, and
• you were issued an Illinois Affordable Housing Tax Credit certificate from Illinois Housing Development Authority (IHDA) or the city of Chicago’s Department of Housing and Economic Development,
• you received Schedule(s) K-1-P distributing this credit to you by a pass-through entity, or
• you received a transfer of credit meeting the following criteria:
  • Under IITA Section 214(c), the credit allowed under this Section may be transferred: A) to the purchaser of land that has been designated solely for affordable housing projects in accordance with the Illinois Housing Development Act; or B) to another donor who has also made a donation in accordance with Section 7.28 of the Illinois Housing Development Act.
  • Persons or entities not subject to the tax imposed by IITA Section 201(a) and (b) and who made a donation under Section 7.28 of the Illinois Housing Development Act are entitled to a credit as described in this Section and may transfer that credit as provided in this subsection (c). (IITA Section 214(a))
  • Transfer of the credit shall be made pursuant to 47 Ill. Adm. Code 355.309.
  • Transfer may be made of all or of any portion of the credit allowable to the transferor. However, any portion of a credit that has already been used to reduce the tax of a transferor may not be transferred.

Note: The credit must be claimed in the year the donation is made, the reservation letter is issued, or the credit is transferred to you.

The credit is 50 percent (.50) of the total amount of your donation to qualified affordable housing projects or the total amount of the credit that was distributed or transferred to you.

Following the specific Schedule 1299 instructions, enter the Affordable Housing Donations tax credit (Code 5260) on Step 3 of:

Schedule 1299-A – credits earned from IHDA or city of Chicago certificates in Column E, credits distributed to you in Column F, and credits transferred to you in Column G.
Schedule 1299-C – credits earned from IHDA or city of Chicago certificates in Column E, and credits distributed and transferred to you in Column F.
Schedule 1299-D – credits earned from IHDA or city of Chicago certificates in Column F, credits distributed to you in Column G, and credits transferred to you in Column H.

Attach the IHDA or city of Chicago certificates, any Schedule(s) K-1-P received listing this credit, and any transfer documentation to support the credit claimed to your Schedule 1299.

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Legal reference: 35 ILCS 5/211

You may take this credit if

• you have entered into an agreement with DCEO, either under the Economic Development for a Growing Economy Tax Credit Act or the Corporate Headquarters Relocation Act, between January 1, 1999, and June 30, 2027, and
• you meet the conditions stated in your agreement with DCEO.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the Economic Development for a Growing Economy (EDGE) tax credit (Code 5300) on Step 3 of:

Schedule 1299-A – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from DCEO certificates in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 10/5-51

For taxable years beginning on or after January 1, 2021, a taxpayer who has been awarded a credit certificate by DCEO is entitled to a credit. The amount of the credit shall be 50% (75% if the project is located in an underserved area) of the amount of the incremental income tax attributable to New Construction EDGE credit employees employed in the course of completing a New Construction EDGE project. To qualify for the credit, you must have applied for and received a tax credit certificate from DCEO. The credit is nonrefundable, but may be carried forward for five years.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the New Construction EDGE tax credit (Code 5320) on Step 3 of:

Schedule 1299-A – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from DCEO certificates in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/201(k)

A taxpayer is entitled to take this credit for tax years ending on or after December 31, 2004 and ending prior to January 1, 2027.

(Qualifying expenses must be from research activities conducted in Illinois.)

“Qualifying expenses” are expenditures qualifying under IRC Section 41 that are attributable to research in Illinois, including certain payments to qualified organizations for basic research in Illinois.

“Qualifying expenses for increasing research activities in Illinois” are the excess of qualifying expenses incurred for the current tax year over qualifying expenses incurred for the base period.

“Base period” is the three tax periods immediately preceding the current year.

“Qualified research” is research or experimental activities that create or improve a function, performance, reliability, or quality. Research must be performed in Illinois and be of a technical nature and be intended to be useful in the development of a new or improved business component held for sale, lease, license, or use by you in your business.

You may take this credit if you have certain qualifying expenses for increasing qualified research activities in Illinois. You may not take this credit for the following types of activities:

• research conducted after the beginning of commercial production;
• research adapting an existing product or process to a particular customer’s need;
• duplication of an existing product or process;
• surveys or studies;
• research relating to certain internal-use computer software;
• research conducted outside Illinois;
• research in the social sciences, arts, or humanities; or
• research funded by another person (or government entity).

Using the worksheet and instructions below, figure your Illinois qualifying expenses to enter on the Research and Development Worksheet on your Schedule 1299-C or 1299-A, Step 2 or Schedule 1299-D, Step 1.

Lines 1 through 5 – Follow the instructions below to determine the amount to enter in Column A and Column B.

Column A – Enter the yearly average of the base period qualified expenses resulting from activities that were conducted in Illinois. If you were not doing business in Illinois during one or more of the tax years included in the base period, use “0” as the factor for that tax year when computing the yearly average base period qualified expenses.

If you were doing business in Illinois for less than an entire year during any tax year in the base period, the qualifying expenses (Lines 1 through 5) for that year must be annualized as follows: (qualified expenses x number of days taxable by Illinois) ÷ (365).

Column B – Enter the current year qualified expenses resulting from activities that were conducted in the State of Illinois.

Line 6 – Add Lines 1 through 5 of each column. Transfer the amount on Line 6 in both columns to the Research and Development Worksheet on Schedule 1299-C or 1299-A, Step 2 or Schedule 1299-D, Step 1. Follow the instructions on your Schedule 1299 to determine the amount to enter as the Research and Development tax credit (Code 5340) on Step 3 of:
Schedule 1299-A – credits from Step 2 in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from Step 2 in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from Step 1 in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach any Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/216

“Qualified wages” means wages you paid during the one-year period beginning with the date a returning citizen begins working for you. Only wages that are subject to unemployment tax under IRC Section 3306 qualify. This includes amounts in excess of the maximum taxable wage. Wages paid during any period for which you received federally funded payments for on-the-job training for the returning citizen do not qualify.

A “qualified returning citizen” means an Illinois resident who

• has been convicted of any crime in this State or of any offense in any other jurisdiction, other than an offense or attempted offense that would subject a person to registration under the Sex Offender Registration Act;
• was sentenced to a period of incarceration in an Illinois adult correctional center; and
• was hired by you within five years after being released from the adult correctional center. 

For tax years beginning on or after January 1, 2025, the Credit for Wages Paid to Returning Citizens is 15 percent (.15) of qualified wages paid during the taxable year to an employee who is a qualified returning citizen. For tax years ending on or after December 31, 2025, the total credits for all tax years for wages paid to a particular returning citizen may not exceed $7,500. The aggregate amount of all Credit for Wages Paid to Returning Citizens awarded by the Illinois Department of Revenue (IDOR) in any calendar year may not exceed $1,000,000. Credits shall be awarded on a first-come first-served basis.

To be eligible for the Credit for Wages Paid to Returning Citizens, you must complete a Returning Citizens Credit Application, be approved, and receive a Returning Citizen Credit Certificate through MyTax Illinois. To apply, log in to your account in MyTax Illinois and select the “Apply for a Returning Citizen Credit” link.

Note: Taxpayers will receive a separate Returning Citizen Credit Certificate for each approved returning citizen. When reporting the credit, do not combine multiple returning citizen credits on one line. Instead, list each Credit for Wages Paid to Returning Citizens that you received a certificate for on a separate line of your Schedule 1299.

Following the specific Schedule 1299 instructions, enter the Wages Paid to Returning Citizens tax credit (Code 5380) on Step 3 of:

Schedule 1299-A – credits from IDOR certificates in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from IDOR certificates in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from IDOR certificates in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of any Returning Citizen Credit Certificates and any Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/218 

“Qualified Illinois prepaid tuition programs” include:

• Illinois Bright Start College Savings Program,
• Illinois Bright Directions College Savings Program,
• College Illinois Prepaid Tuition Program.

For taxable years ending on or after December 31, 2009, and on or before December 31, 2029, if you are an employer who makes a matching contribution to a qualified Illinois prepaid tuition program on behalf of your employees, you are entitled to a credit of 25 percent (.25) of the contribution for each employee or $500 per employee, whichever is less.

Using the worksheet and instructions, figure your Student-Assistance Contributions credit to enter in your Schedule 1299.

Lines 1 through 3 – For each employee for whom you made a matching contribution:

Column A – Enter the name of the employee.

Column B – Enter the Social Security number of the employee.

Column C – Enter the amount of the matching contribution you made.

Column D – Multiply the amount in Column C by 25 percent (.25).

Column F – Enter the amount from Column D or the amount from Column E, whichever is less.

Line 4 – Follow the instructions on the worksheet.

Following the specific Schedule 1299 instructions, enter the Student-Assistance Contributions tax credit (Code 5420) on Step 3 of:

Schedule 1299-A – credits from Line 4 above in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from Line 4 above in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from Line 4 above in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach any Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/220 

For tax years beginning on or after January 1, 2011, and ending on or before December 31, 2026, an Angel Investment credit may be claimed in an amount equal to:

• 25 percent (.25) of an investment made directly in a qualified new business, or
• 35 percent (.35) of an investment made directly in a qualified new business venture in which:
• the new business is a minority-owned business, a women-owned business, or a business owned by a person with a disability (as those terms are used and defined in the Business Enterprise for Minorities, Women, and Persons with Disabilities Act); or
• the principal place of the business is located in a county with a population of not more than 250,000.

To qualify for the credit, you must have applied for and received a tax credit certificate from DCEO. Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the Angel Investment tax credit (Code 5460) on Step 3 of:

Schedule 1299-A – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from DCEO certificates in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/241 

For tax years ending on or after June 26, 2024, a taxpayer who has been awarded a credit by DCEO is entitled to a credit against the taxes imposed under subsections (a) and (b) of Section 201 of the IITA. The amount of the credit shall be 20% of the wages paid by the taxpayer during the taxable year to a full-time or part-time employee of a construction contractor employed in the construction of an eligible facility located on a quantum computing campus. To qualify for the credit, you must have applied for and received a tax credit certificate from DCEO.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the Quantum Computing Campuses credit (Code 5480) on Step 3 of:

Schedule 1299-A – credits from the DCEO certificate in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from the DCEO certificate in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from the DCEO certificate in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 20 ILCS 663/1 et. seq. 

The New Markets Development credit is allowed for qualified investments made in a community development entity in tax years beginning on or after December 31, 2008 and ending before July 1, 2031. Credits are allowed on the second anniversary of the investment and the next four anniversaries. To qualify for this credit, you must have applied for and received a tax credit certificate from DCEO.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the New Markets Development tax credit (Code 5500) on Step 3 of:

Schedule 1299-A – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from DCEO certificates in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/221

For tax years beginning on or after January 1, 2012, and ending prior to January 1, 2029, the River Edge Historic Preservation credit is available for projects located in river edge redevelopment zones. The credit is awarded by the Department of Natural Resources (DNR). To qualify for this credit, you must have applied for and received a tax credit certificate from DNR.

Contact DNR for more information.

Following the specific Schedule 1299 instructions, enter the River Edge Historic Preservation tax credit (Code 5540) on Step 3 of:

Schedule 1299-A – credits from DNR certificates in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from DNR certificates in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from DNR certificates in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DNR certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/221

For taxable years beginning on or after January 1, 2021, and ending prior to January 1, 2029, a taxpayer who has been awarded a credit certificate by DCEO is entitled to a credit. The amount of the credit shall be 50% (75% if the project is located in an underserved area) of the amount of the incremental income tax attributable to River Edge construction job employees employed in the course of completing a River Edge construction job project. To qualify for the credit, you must have applied for and received a tax credit certificate from DCEO.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the River Edge Construction Jobs tax credit (Code 5560) on Step 3 of:

Schedule 1299-A – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from DCEO certificates in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/222

For tax years beginning on or after January 1, 2012, and beginning prior to January 1, 2027, the Live Theater Production credit is awarded based on applications approved through DCEO.

To qualify for this credit, you must have

• applied for and received a tax credit certificate from DCEO, or
• received a certificate from DCEO showing that a credit was transferred to you. A transfer of the tax credit may be made by the taxpayer earning the credit within one year after the credit is awarded in accordance with rules adopted by DCEO.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the Live Theater Production tax credit (Code 5580) on Step 3 of:

Schedule 1299-A – credits from DCEO certificates in Column E, credits distributed to you in Column F, and credits transferred to you in
Column G.
Schedule 1299-C – credits from DCEO certificates in Column E, and credits distributed and transferred to you in Column F.
Schedule 1299-D – credits from DCEO certificates in Column F, credits distributed to you in Column G, and credits transferred to you in
Column H.

Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/223

For tax years ending on or after December 31, 2012, and ending on or before December 31, 2027, the Hospital credit is available to the owner of a hospital that

• is licensed under the Hospital Licensing Act, and
• is not exempt from federal income taxes under the Internal Revenue Code.

The credit is an amount equal to the lesser of the amount of real property taxes paid on Illinois property used for hospital purposes during the prior tax year or the cost of free or discounted services provided during the current tax year at Illinois locations in accordance with the hospital’s charitable financial assistance policy, measured at cost.

The Hospital credit may be transferred, either by selling or donating the credit,

• by the taxpayer who originally earned the credit, and
• only if the transfer occurs within one year after the due date of the transferor’s return for the period in which the credit is earned.

The taxpayer transferring the credit must attach to their Schedule 1299-C,1299-D, or 1299-A a copy of the written notice of the transfer stating the intent to sell or donate the credit, including the amount of credit to be transferred, the date of the transfer, and the name, address, and the Federal Employer Identification Number (FEIN) or Social Security Number (SSN) of the recipient. A copy of this notice must also be provided to the recipient of the credit who in turn should attach a copy of the notice to their Schedule 1299-C, 1299-D or 1299-A when filing their return. If you transfer the credit after your original return has been submitted, you must submit an amended return and all affected supporting documents to report the transfer.

Use the worksheet below to figure your Hospital credit.

Following the specific Schedule 1299 instructions, enter the Hospital tax credit (Code 5620) on Step 3 of:

Schedule 1299-A – credits from Line 5 above in Column E, credits distributed to you in Column F, and credits transferred to you in Column G.
Schedule 1299-C – credits from Line 5 above in Column E, and credits distributed and transferred to you in Column F.
Schedule 1299-D – credits from Line 5 above in Column F, credits distributed to you in Column G, and credits transferred to you in Column H.

Attach any transfer documentation and any Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/243

For taxable years ending on or after December 31, 2025, and ending before January 1, 2030, you are eligible for this credit if you made a qualified contribution to one or more Qualified Community Foundations (QCF) during the taxable year and did not claim any portion of the contribution as a federal tax deduction.

For each Certificate of Receipt (COR) you receive from the QCF(s), enter the total amount from the COR on the line below. Multiply this amount by 25 percent (.25).

Each COR you receive must be entered on a separate line of Schedule 1299. Use the formula above to determine the amount to enter as the Illinois Gives tax credit (Code 5670) on Step 3 of:

Schedule 1299-A – credits from the line above in Column E and credits distributed to you in Column F
Schedule 1299-C – credits from the line above in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from the line above in Column F and credits distributed to you in Column G.

This credit is not transferable. Do not attach a copy of your COR to Schedule 1299-D, 1299-C or 1299-A; however, you must maintain the copy in your records in the event the Department requests to see the copy. Attach Schedule(s) K-1-P received listing this credit to your Schedule 1299.

Note: Remember to enter the Certificate Number in the correct column.

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Legal reference: 35 ILCS 5/242

“Qualified music company (QMC)” means an entity that

• is authorized to do business in Illinois,
• is engaged directly or indirectly in the production, distribution, or promotion of music,
• is certified by DCEO as meeting the eligibility requirements of the Music and Musicians Tax Credit and Jobs Act, and
• has executed a contract with DCEO providing the terms and conditions for its participation.

“Illinois labor expenditure” means gross salary or wages, including, but not limited to, taxes, benefits, and any other consideration incurred or paid to artist employees of the applicant for services rendered to and on behalf of the qualified music company, provided that the expenditure is:

• incurred or paid by the applicant on or after the effective date of the Music and Musicians Tax Credit and Jobs Act for services related to any portion of a qualified music company from rehearsals, performances, and any other qualified music company related activities;
• limited to the first $100,000 of wages incurred or paid to each employee of a qualified music production in each tax year;
• paid in the tax year for which the applicant is claiming the tax credit award;
• paid to persons residing in Illinois at the time payments were made; and
• reasonable under the circumstances.

For tax years beginning on or after January 1, 2025, a taxpayer who has entered into an agreement with DCEO under the Music and Musicians Tax Credit and Jobs Act is entitled to a credit against the taxes imposed under subsections (a) and (b) of Section 201 of the IITA. The award may not exceed 10% of the Illinois labor expenditures for the State-certified production if the payroll of the qualified music company for the taxable year does not exceed $150,000, or 15% of the Illinois labor expenditures for the State-certified production if the payroll of the QMC for the taxable year exceeds $150,000. The QMC is also eligible for any of the following:

• an additional 15% of the Illinois labor expenditures for the State-certified production generated by the employment of Illinois residents in geographic areas of high poverty or high unemployment in each tax year, as determined by the Department; and
• an additional 7% of the Illinois labor expenditures for the State-certified production generated by the employment of individuals who are employed at a wage of no less than the general prevailing hourly rate as paid for work of a similar character in the locality in which the work is performed; and
• an additional 7% of the Illinois labor expenditures for the State-certified production incurred by a qualified music company and spent on post-production sound recording for television or film work completed in Illinois.

Additionally, to the extent that the base investment by a qualified music company is expended on a sound recording production of a resident copyright, the investor shall be allowed an additional 10% increase in the base investment rate.

The aggregate amount of credits certified during any calendar year shall not exceed $1,000,000. No more than $200,000 in tax credits may be granted per calendar year for any single qualified music company.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the Music and Musicians credit (Code 5680) on Step 3 of:

Schedule 1299-A – credits from the DCEO certificate in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from the DCEO certificate in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from the DCEO certificate in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/225

For tax years beginning on and after January 1, 2017, the K-12 Instructional Materials and Supplies credit is available to eligible educators for qualified expenses paid during the taxable year. For taxable years beginning on or after January 1, 2023, eligible educators can claim a credit up to $500 for qualified expenses paid in the current taxable year. If married, filing jointly, and both taxpayers were eligible educators, the maximum credit is $1,000.

DEFINITIONS

“Eligible educator” is a kindergarten through twelfth grade teacher, instructor, counselor, principal, or aide in a qualified K-12 school for at least 900 hours during a school year.

“Materials and supplies” are instructional materials or supplies designated for classroom use in any qualified school.

“Qualified expenses” include ordinary and necessary expenses paid in connection with books, supplies (including nonathletic supplies for courses of instruction in health or physical education), equipment (including computer equipment, software, and services), and other materials used in the classroom. An ordinary expense is one that is common and accepted in your educational field. A necessary expense is one that is helpful and appropriate for your profession as an educator. An expense does not have to be required to be considered necessary.

Note: Qualified expenses do not include expenses paid for instruction in a home school.

“Qualified school” is a public school or non-public school located in Illinois.

Note: Home schools are not qualified schools.

Using the worksheet on Schedule 1299-C and the instructions below, figure your K-12 Instructional Materials and Supplies credit.

If you are an eligible educator and you paid amounts for instructional materials and supplies during the taxable year, complete all lines in Column A. If you file a joint return, and your spouse is an eligible educator who paid amounts for instructional materials and supplies during the taxable year, complete all lines in Column B.

Line 11a - Enter the Professional Educator License number, if applicable. If not applicable, enter “N/A”.

Line 11b - Enter the name of the Illinois school where the taxpayer or spouse was employed as a teacher, instructor, counselor, principal, or aide for at least 900 hours during the school year.

Line 11c - Enter the total qualified expenses paid during the taxable year for instructional materials and supplies used in classroom-based instruction at the school entered on Line 11b.

Line 11d - Enter the lesser of the amount on Line 11c or the maximum credit. The maximum credit amount allowed for each column is $500.

Line 12 - Add Line 11d, Columns A and B, and enter the result. Enter this amount in Column E on Schedule 1299-C, Step 3, on the line that you enter “5” in Column A and Credit Code 5740 in Column B.

This credit is not distributable or transferable.

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Legal reference: 35 ILCS 5/227

For tax years ending on or after December 31, 2018, and on or before December 31, 2029, if you have qualified adoption expenses in the course of adopting an eligible child, you are entitled to the Adoption credit in the amount equal to the amount of the federal adoption tax credit received subject to the limitations detailed in Part 2. DO NOT include any federal carryover when determining the amount of federal adoption tax credit received. An eligible child is any individual who has not attained age 18, or is physically or mentally incapable of caring for himself or herself. The credit is allowed

• in the case of any expense paid or incurred before the taxable year in which the adoption becomes final, for the taxable year following the taxable year during which the adoption expense is paid or incurred, or
• in the case of an expense paid or incurred during or after the taxable year in which the adoption becomes final, for the taxable year in which such expense is paid or incurred.

No credit will be allowed for any expense for which funds are received from any Federal, State or local program. Spouses filing a joint return are considered one taxpayer. For nonresidents and part-year residents, the amount of credit shall be in proportion to the amount of income attributable to this state.

Using the worksheet on Schedule 1299-C, Step 2, and the instructions below, figure your Adoption credit. Attach additional pages in the same format, if you are claiming the Adoption credit for more than three children.

Part 1 - Adopted Child Information - For each eligible child you are adopting or have adopted and are claiming qualifying adoption expenses, enter the name, identifying number (Social Security number, ITIN, etc.), birth date (month and year) and check the appropriate box(es)

• if the adopted child is an Illinois resident at the time the expenses are paid or incurred.
• if the adoption is final during this tax year.

Part 2 - Figure Your Credit - The total amount of qualified adoption expenses allowed as a credit shall not exceed $2,000 ($1,000 in the case of married filing separate return). However, the credit allowed increases to $5,000 ($2,500 in the case of a married filing separate return) if the adoption is of an eligible child who is at least one year old and resides in Illinois at the time the expenses are paid or incurred.

Note: When qualified adoption expenses are reported over multiple tax years for the adoption of the same child, any amount of Illinois Adoption credit previously received for this child must be included on your Schedule 1299-C, Part 2, Line 16b, Adoption Credit worksheet.

Your total adoption credit for all tax years may not exceed the maximum allowable credit for the adoption of that child.

Line a - Enter the maximum credit allowed based on the above description.

Line b - Enter the amount of any adoption credit previously claimed on an Illinois return for the same child. The maximum credit on Line a is for the entire adoption of that child, no matter how many years the adoption takes to complete.

Line c - Follow the directions on the worksheet.

Line d - Enter the qualified adoption expense you paid or incurred (usually, Line 5 of federal Form 8839, Qualified Adoption Expenses) where qualified adoption expense means any reasonable and necessary adoption fees, court costs, attorney fees, and other expenses which are

• directly related to, and the principal purpose of which is, the legal adoption of an eligible child by the taxpayer,
• not incurred in violation of State or Federal law or in carrying out any surrogate parenting arrangement,
• not expenses in connection with the adoption by an individual of a child who is the child of such individual’s spouse, and
• not reimbursed under an employer program or otherwise.

Line e - Follow the directions on the worksheet.

Line f - Total all columns of Line e and enter the result here.

Line g - Follow the directions on the worksheet.

Line h - Follow the directions on the worksheet. Enter the total in Column E of your Schedule 1299-C, Step 3, on the line that you enter “5” in Column A and Credit Code 5780 in Column B.

Attach: You must attach a copy of Federal Form 8839, Qualified Adoption Expenses, to your Form IL-1040, if you enter an Adoption credit amount on Schedule 1299-C.

This credit is not distributable or transferable.

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Legal reference: 35 ILCS 5/229

For taxable years beginning on or after January 1, 2019, a taxpayer who has been awarded a tax credit certificate by DCEO is entitled to a credit. The amount of the credit shall be 20 percent of the wages paid during the taxable year to a full-time or part-time employee of a construction contractor employed by a certified data center. To qualify for the credit, you must have applied for and received a tax credit certificate from DCEO.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the Data Center Construction Employment credit (Code 5820) on Step 3 of:

Schedule 1299-A – credits from the DCEO certificate in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from the DCEO certificate in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from the DCEO certificate in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/239

“Qualified property” is property that

1. is tangible, whether new or used, including buildings and structural components of buildings;
2. is depreciable pursuant to Section 167 of the Internal Revenue Code, except that “3-year property” as defined in Section 168(c)(2)(A) of that Code is not eligible for the credit;
3. is acquired by purchase as defined in Section 179(d) of the Internal Revenue Code;
4. is used at the site of the MICRO Illinois Project by the taxpayer; and
5. has not been previously used in Illinois in such a manner and by such a person as would qualify for the credit.

For tax years beginning on or after January 1, 2025, a taxpayer shall be allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 for investment in qualified property which is placed in service at the site of a project that is subject to an agreement between the taxpayer and DCEO pursuant to the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act. The credit is equal to 0.5 percent of the basis for the property. The credit is only available in the taxable year in which the property is placed in service. Any taxpayer qualifying for the MICRO Investment tax credit shall not be eligible for a Replacement Tax Investment tax credit, Enterprise Zone Investment tax credit, or High Impact Business Investment tax credit. The credit is nonrefundable, but may be carried forward for five years.

Contact DCEO for more information.

Using the worksheet below and these instructions, figure your MICRO Investment credit to enter on your Schedule 1299.

Column A – Describe each item of qualified property you placed in service in a MICRO Illinois Project.

Column B – Enter the month and year each item of qualified property was placed in service in Illinois. An item is placed in service on the earlier of

• the date the item is placed in a condition or state of readiness and availability for its specifically assigned function, or
• the date the depreciation period of the item begins. (Generally, this will be the same date the item is placed in service for purposes of the federal depreciation deduction.)

Column C – If you are using the federal accelerated cost recovery system (ACRS) to depreciate the property, enter the ACRS class assigned to each item of qualified property. Property assigned to an ACRS class of less than four years is not qualified.

If you are not using the ACRS method to depreciate the property, enter the useful life assigned to the property for federal depreciation purposes. The useful life of the property when placed in service must be four or more years to qualify.

Column D – Indicate whether each item of qualified property is new or used. If the property was previously used, enter the abbreviation of the state where the property was located. If you are filing Schedule 1299-D or 1299-A and the property was previously used in Illinois, but not in a manner that qualified for this credit or for the Replacement Tax Investment Credit on Form IL-477, maintain a statement in your records to provide upon request.

Column E – Enter the location of the MICRO Illinois Project in which the property is used.

Column F – For each item of property, enter the basis used to figure the depreciation deduction for federal income tax purposes. Generally, the basis will be the purchase price, plus any capital expenditures, minus any rebates and IRC Section 179 deductions. The basis is not reduced by depreciation, including bonus depreciation, except depreciation you were allowed to claim before the date you placed it in service at the location of a MICRO Illinois Project.

Column G – If you placed property in service in a MICRO Illinois Project, the credit rate is .005.

Column H – Multiply each entry in Column F by the amount in Column G, and enter the result in Column H.

Line 4 – Follow the instructions on the worksheet.

Following the specific Schedule 1299 instructions, enter the MICRO Investment tax credit (Code 5830) on Step 3 of:

Schedule 1299-A – credits from Line 4 above in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from Line 4 above in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from Line 4 above in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of your MICRO Investment Credit Worksheet and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/238

For tax years beginning on or after January 1, 2025, a taxpayer who has entered into an agreement with DCEO under the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act is entitled to a credit against the taxes imposed under subsections (a) and (b) of Section 201 of the IITA in an amount to be determined in the Agreement. The determined credit amount is not to exceed the sum of (i) 75 percent of the incremental income tax attributable to new or retained employees at the applicant’s project (increased to 100 percent of the incremental income tax attributable to new or retained employees if the project is in an underserved area or an energy transition area) and (ii) 10 percent of the training costs of the new employees or certain retained employees (increased to 25 percent of the training costs for certain new employees based on their educational and training status). To qualify for the credit, you must have applied for and received a tax credit certificate from DCEO. The credit is nonrefundable, but may be carried forward for five years.

Note: Instead of claiming this credit against the taxes imposed under IITA Section 201(a) and (b), a taxpayer may elect to claim against its withholding tax obligation only that portion of the MICRO Illinois Credit that is calculated based on the incremental income tax attributable to new employees and retained employees.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the MICRO Illinois tax credit (Code 5840) on Step 3 of:

Schedule 1299-A – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from DCEO certificates in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/238

For tax years beginning on or after January 1, 2025, a taxpayer who receive a tax credit for construction wages associated with a project that also qualified for a MICRO Illinois credit. The amount of the construction jobs credit shall be 50 percent (75 percent if the project is located in an underserved area or an energy transition area) of the amount of the incremental income tax attributable to construction wages in connection with the construction of the project facilities and paid to workers hired to construct the project. To qualify for the credit, you must have applied for and received a tax credit certificate from DCEO. The credit is nonrefundable, but may be carried forward for five years.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the MICRO Construction Jobs tax credit (Code 5850) on Step 3 of:

Schedule 1299-A – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from DCEO certificates in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from DCEO certificates in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/228

For tax years beginning on or after January 1, 2019, and ending on or before December 31, 2028, a taxpayer who qualifies for a credit under the Historic Preservation Tax Credit Act is entitled to a credit based on a qualified rehabilitation plan approved by the Department of Natural Resources (DNR). To qualify for this credit, you must have applied for and received a tax credit certificate from DNR.

Contact DNR for more information.

Following the specific Schedule 1299 instructions, enter the Historic Preservation credit (Code 1030) on Step 3 of:

Schedule 1299-A – credits from the DNR certificate in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from the DNR certificate in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from the DNR certificate in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DNR certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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Legal reference: 35 ILCS 5/252

For tax years beginning on or after January 1, 2026, a taxpayer who has entered into an agreement with DCEO under the Advancing Innovative Manufacturing for Illinois Tax Credit Act is entitled to a credit in an amount to be determined in the agreement. To qualify for the credit, you must have applied for and received a tax credit certificate from DCEO. Any taxpayer qualifying for the AIM for Illinois tax credit shall not be eligible for a Replacement Tax Investment tax credit, Enterprise Zone Investment tax credit, or High Impact Business Investment tax credit.

Contact DCEO for more information.

Following the specific Schedule 1299 instructions, enter the AIM Illinois credit (Code 1050) on Step 3 of:

Schedule 1299-A – credits from the DCEO certificate in Column E and credits distributed to you in Column F.
Schedule 1299-C – credits from the DCEO certificate in Column E and credits distributed to you in Column F.
Schedule 1299-D – credits from the DCEO certificate in Column F and credits distributed to you in Column G.

This credit is not transferable. Attach a copy of every DCEO certificate and Schedule(s) K-1-P received listing this credit to your Schedule 1299.

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