SPRINGFIELD, IL - The Illinois State Senate passed two bills rewarding businesses who hire veterans or train their employees. State Senator Michael Frerichs (D-Champaign) co-sponsored Senate Bill 2854 which implements 2% tax credit given to employers who make an effort to further train their employees. Senator Frerichs also co-sponsored Senate Bill 2859 which expands a tax credit given to businesses hiring veterans.

"In Illinois, we should be doing more to reward companies who take care of their employees and hire qualified veterans," said Senator Frerichs. "This legislation will reward those businesses and encourage others to take up similar practices."

Senate Bill 2854 reinstates a tax credit which expired in 2003. The previous legislation credited businesses with 1.6% of their training expenses, whereas the new bill credits them with 2%. The bill credits companies for educational or vocational training in semi technical or technical fields or semi skilled or skilled fields.

"We should encourage companies to invest in their workforce and to improve their skills with formal training," said Senator Frerichs. "This bill will help workers retain jobs, while allowing them to train for a more skilled or technically demanding job. As a result of globalization, many less skilled and technical jobs are moving oversees or elsewhere within the U.S. Job training is important to keeping our workforce ahead of the game."

Senate Bill 2859 raises tax credits from 5% to 10% to companies who hire veterans of Operation Desert Storm, Operation Enduring Freedom, or Operation Iraqi Freedom. The veterans must have been both honorably discharged and initially hired on or after January 1, 2007. The bill also extends a credit of 7.5% for veterans who fought in other conflicts as well. The amount of credit is capped at $1,200 for Iraqi and Afghani war veterans and $800 for all other veterans.

"Many soldiers are encouraged to join the armed forces because they are told that the skills they learn can translate into jobs at home," said Senator Frerichs. "Many times, however, veterans struggle to find jobs when they return. This legislation will encourage employers to hire veterans who have risked their lives for our nation."

Both of these bills passed without opposition and now move to the House of Representatives for consideration.