HB1595 101ST GENERAL ASSEMBLY

LRB101 07073 HLH 52110 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB1595

Introduced , by Rep. Monica Bristow

SYNOPSIS AS INTRODUCED:

35 ILCS 5/229 new

Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to 20%, but in no event to exceed $2,000, of the gross wages paid by the taxpayer during the taxable year to each creditable employee. Provides that a "creditable employee" is an employee who: (1) was employed by the taxpayer for the first time on or after the effective date of the amendatory Act; (2) completed his or her twenty-fourth consecutive month of employment with the taxpayer during the taxable year; (3) received unemployment benefits in this State for at least 2 months immediately prior to being hired by the taxpayer; and (4) was employed at a location in this State for at least 30 hours per week during the entire 24-month period of his or her employment with the taxpayer. 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. Jobs development incentive tax credit.

(a) As used in this Section:

"Creditable employee" means an employee of the taxpayer who meets all of the following criteria:

(1) he or she was employed by the taxpayer for the first time on or after the effective date of this amendatory Act of the 101st General Assembly;

(2) he or she completed his or her twenty-fourth consecutive month of employment with the taxpayer during the taxable year;

(3) he or she received unemployment benefits in this State for at least 2 months immediately prior to being hired by the taxpayer; and

(4) he or she was employed at a location in this State for at least 30 hours per week during the entire 24-month period of his or her employment with the taxpayer.

(b) A taxpayer is entitled to a credit against the taxes imposed by subsections (a) and (b) of Section 201 in an amount equal to 20%, but in no event to exceed $2,000, of the gross wages paid by the taxpayer during the taxable year to each creditable employee.

(c) If the taxpayer is a partnership, subchapter S corporation, or limited liability company with pass-through tax treatment, the credit shall be allowed to the partners, shareholders, or members in accordance with the determination of income and distributive share of income under Sections 702 and 704 and subchapter S of the Internal Revenue Code.

(d) The credit may not be carried back and may not reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset the liability, the earlier credit shall be applied first.

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

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