Illinois Employee Retention Credit: State COVID Orders & Eligibility
Illinois ERC eligibility guide covering Governor Pritzker's COVID-19 executive orders and documentation for IRS audit defense.
Illinois businesses faced comprehensive COVID-19 restrictions under Governor J.B. Pritzker's executive orders and the 'Restore Illinois' reopening plan. From the March 2020 stay-at-home order through the phased regional reopening extending into 2021, Illinois employers experienced significant operational disruptions.
Illinois COVID-19 Executive Order Framework
Governor Pritzker declared a statewide disaster on March 9, 2020. Executive Order 2020-10 (March 20, 2020) implemented the stay-at-home order closing non-essential businesses.
- Executive Order 2020-10 (March 20, 2020): Stay-at-home order requiring residents to stay home; closed non-essential businesses
- Executive Order 2020-32 (April 30, 2020): Extended modified stay-at-home order through May 30, 2020
- Executive Order 2020-43 (June 26, 2020): Phase 4 reopening expanding permitted activities statewide
Tip: Illinois executive orders are numbered sequentially and publicly archived.
Restore Illinois Regional Framework
The 'Restore Illinois' plan established a five-phase regional reopening framework dividing the state into 11 health regions.
- Phase 1-2: Strict stay-at-home; essential businesses only
- Phase 3 (Recovery): Gatherings up to 10; offices at 50% capacity; outdoor dining
- Phase 4 (Revitalization): Gatherings up to 50; indoor dining at 25-50%
Warning: Different Illinois regions advanced through phases at different times.
Tier 3 Mitigations (Winter 2020-2021)
By November 2020, all regions triggered Tier 3 mitigations, closing indoor dining and imposing significant new restrictions.
- Tier 3 Mitigations: Indoor dining closed; bars closed; retail 25%; fitness closed; gatherings of 10
Tip: If your business was affected by Tier 3 mitigations, document the specific dates these restrictions were in effect.
Key Takeaways
- Illinois implemented comprehensive COVID restrictions through numbered executive orders and the Restore Illinois framework
- Tier 3 mitigations in fall/winter 2020 created a second period of significant restrictions
- Different Illinois regions advanced through reopening phases at different times
Frequently Asked Questions
Which Illinois executive orders support ERC eligibility?
The primary orders are the COVID-19 Executive Order series, particularly Order 2020-10 (stay-at-home), Order 2020-32 (extended restrictions), and Order 2020-43 (Phase 4 reopening).
How does Illinois's regional reopening affect my ERC claim?
Your ERC claim must document which region your business operated in and the dates each phase began for that region.
Can Illinois restaurants claim ERC for the Tier 3 mitigation period?
Yes, Tier 3 mitigations in fall/winter 2020 closed indoor dining statewide, creating another qualifying period.
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