HB1594 101ST GENERAL ASSEMBLY

LRB101 07042 HLH 52078 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB1594

Introduced , by Rep. Monica Bristow

SYNOPSIS AS INTRODUCED:

35 ILCS 5/229 new

Amends the Illinois Income Tax Act. Creates an income tax credit for an Illinois business that increases its average full-time employee head count in the State for the taxable year by more than 20% over its average full-time employee head count in the State for the immediately preceding taxable year. Provides that the amount of the credit is 20% of its tax liability under this Act (other than its withholding tax liability) for the taxable year. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 229 as follows:

(35 ILCS 5/229 new)

Sec. 229. Credit for increasing employee head count.

(a) For taxable years ending on or after December 31, 2019, if an Illinois business increases its average full-time employee head count in the State for the taxable year by more than 20% over its average full-time employee head count in the State for the immediately preceding taxable year, then that business is entitled to a credit against the taxes imposed by subsections (a) and (b) of Section 201 in an amount equal to 20% of its tax liability under this Act (other than its liability under Article 7 of this Act) for the taxable year.

(b) Partners, shareholders of subchapter S corporations, and owners of limited liability companies (if the limited liability company is treated as a partnership for purposes of federal and State income taxation) are entitled to a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 703 and subchapter S of the Internal Revenue Code.

(c) As used in this Act, a person is considered a full-time employee if the person is employed for consideration for at least 35 hours each week or renders any other standard of service generally accepted by industry custom or practice as full-time employment.

(d) This Section is exempt from the provisions of Section 250.

Section 99. Effective date. This Act takes effect upon becoming law.