IL · Tax Credit

Illinois Workforce Training Tax Credits: What Employers Can Claim

Illinois employers can claim the Apprenticeship Education Expense Tax Credit ($3,500 per registered apprentice, plus $1,500 in underserved areas) and, for large expansion projects, the EDGE credit, which includes a credit for 10% of new-employee training costs. The federal Work Opportunity Tax Credit lapsed for people who start work after December 31, 2025, unless Congress renews it. The IRS page was updated July 20, 2026; check it for any extension.

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State pre-filled: IL
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HOW IT WORKS

Four steps, in this order.

1
Pick the credit that fits: apprenticeship or EDGE
2
Get DCEO certification or approval
3
Keep records of qualifying costs and jobs
4
Claim it on your Illinois return

2 VERIFIED PROGRAMS

Where the Illinois money comes from.

Run by Illinois DCEO (certifies credits) and Illinois Department of Revenue (claims). Every figure is from an official page, linked on each card.

Illinois Apprenticeship Education Expense Tax Credit

$3,500 per apprentice, +$1,500 underserved

OPEN, FIRST COME FIRST SERVED

WHAT YOU GET

Credit for tuition, book fees and lab fees paid for apprentices in USDOL registered programs.

HOW MUCH

$3,500 per apprentice, plus $1,500 in an underserved area. Total credits are capped at $5 million a year, first come, first served.

WHO RECEIVES THE MONEY

Your company, against Illinois income tax.

WHO QUALIFIES

Illinois taxpayer employing the apprentice in Illinois
Apprentice is an Illinois resident, 16 or older, full-time in a registered program

Before you start: DCEO certifies expenses before you file the credit.

EDGE Tax Credit (Economic Development for a Growing Economy)

10% of new-hire training costs, plus job credits

OPEN, BY APPLICATION

WHAT YOU GET

Credits tied to new jobs, retained jobs and capital investment, plus a credit for 10% of eligible training costs of newly hired full-time employees.

HOW MUCH

Credit rates for jobs and investment are set in each DCEO agreement; the page publishes no dollar base. Training credit: 10% of eligible costs. Up to 10 years (Tier I) or 15 years (Tier II).

WHO RECEIVES THE MONEY

Your company, as annual credits against corporate income tax (Tier I) or withholding taxes (Tier II).

WHO QUALIFIES

Tier I, 100 or fewer employees worldwide: lesser of 5% of employment or 50 new full-time jobs, with no minimum investment
Tier I, over 100 employees: lesser of 10% or 50 new jobs and $2.5 million investment
Tier II: 100 or more new jobs and $50 million investment, or 500 jobs retained and $100 million
Must pass the 'but for' test

Before you start: Yes. The state approval letter comes before the project, and the company certifies it would not expand in Illinois without the credit.

AVOID THESE

What gets Illinois Tax Credit claims denied.

EDGE: the project would have happened in Illinois anyway.
SOURCE: DCEO.ILLINOIS.GOV
EDGE: training credit for wages, fringe benefits or foreign travel.
SOURCE: DCEO.ILLINOIS.GOV
Apprenticeship credit: program is not USDOL registered.
SOURCE: DCEO.ILLINOIS.GOV
Apprenticeship credit: claiming anything beyond tuition, book and lab fees.
SOURCE: DCEO.ILLINOIS.GOV

STRAIGHT ANSWERS

Illinois Tax Credit questions.

Can I claim the federal Work Opportunity Tax Credit for 2026 hires?

Not on current law. The IRS says it is available for wages paid to people who begin work on or before December 31, 2025. Watch the IRS page for any extension.

SOURCE: IRS.GOV

How much is the Illinois apprenticeship credit?

$3,500 per qualifying apprentice, plus $1,500 in an underserved area, within a $5 million annual cap.

SOURCE: DCEO.ILLINOIS.GOV

Does EDGE cover training?

Yes. It includes a credit for 10% of eligible training costs of newly hired full-time employees at the project.

SOURCE: DCEO.ILLINOIS.GOV

Can a small company use EDGE?

Yes. Tier I allows 100 or fewer employees worldwide with a jobs target of the lesser of 5% of employment or 50 new jobs and no minimum investment.

SOURCE: DCEO.ILLINOIS.GOV

How we checked. Every fact on this page comes from a state agency, a local workforce board or federal regulation, read on September 30, 2026. Where a board publishes nothing, we say so instead of guessing. Programs and funding change often; confirm with the program before you commit. Written by Jason Meehl, founder of Reimbursa. Found an error? Email hello@reimbursa.com.

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