100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3612
 
Introduced , by Rep. Robert Rita
 
SYNOPSIS AS INTRODUCED:
 

 
35 ILCS 5/224 new

     Amends the Illinois Income Tax Act.  Provides that each business that (i) is primarily engaged in manufacturing and (ii) hires and retains employees to work at a facility in a high-crime area, as defined by the Department of Commerce and Economic Opportunity by rule, shall be entitled to a credit against its Illinois income tax liability.  Provides that the amount of the credit shall be equal to 30% of the gross wages paid to each full-time permanent employee located at the qualified facility who has been employed by the taxpayer at that facility for exactly 12 months at any point during the taxable year. Provides that the credit shall be administered by the Department of Commerce and Economic Opportunity.  Effective immediately.
  


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FISCAL NOTE ACT MAY APPLY
 
 
A BILL FOR
 

  
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1    AN ACT concerning revenue.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Illinois Income Tax Act is amended  by adding 
5Section 224 as follows:
 
6    (35 ILCS 5/224 new)
7    Sec. 224. Tax credit for manufacturing. 
8    (a) Notwithstanding any other provision of law, for taxable 
9years beginning on or after January 1, 2017, each business that 
10(i) is primarily engaged in manufacturing and (ii) hires and 
11retains employees to work at a facility in a high-crime area, 
12as defined by the Department of Commerce and Economic 
13Opportunity by rule, shall be entitled to a credit against the 
14taxes imposed by subsections (a) and (b) of Section 201 as 
15provided in this Section. The business shall apply with the 
16Department of Commerce and Economic Opportunity for the credit 
17under this Section.
18    (b) The amount of the credit shall be equal to 30% of the 
19gross wages paid to each full-time permanent employee located 
20at the qualified facility who has been employed by the taxpayer 
21at that facility for exactly 12 months at any point during the 
22taxable year. 
23    (c) In no event shall a credit under this Section reduce 
 
 
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1the taxpayer's liability to less than zero. If the amount of 
2the credit exceeds the tax liability for the year, the excess 
3may be carried forward and applied to the tax liability of the 
410 taxable years following the excess credit year or it may be 
5carried back to the 10 taxable years immediately preceding the 
6excess credit year. The tax credit shall be applied to the 
7earliest year for which there is a tax liability. If there are 
8credits for more than one year that are available to offset a 
9liability, the earlier credit shall be applied first. 
10    (d) The credit shall be administered by the Department of 
11Commerce and Economic Opportunity.  The Department of Commerce 
12and Economic Opportunity may adopt rules for the implementation 
13of this Section. 
14    (e) This Section is exempt from the provisions of Section 
15250. 
 
 
16    Section 99. Effective date. This Act takes effect upon 
17becoming law.