SB4006 101ST GENERAL ASSEMBLY

LRB101 21672 HLH 72614 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB4006

Introduced 1/4/2021, by Sen. Ram Villivalam

SYNOPSIS AS INTRODUCED:

35 ILCS 5/232 new

Amends the Illinois Income Tax Act. Creates an income tax credit for employers who hire residents of the State if those residents were unemployed as a result of the COVID-19 pandemic immediately prior to the date of hire by the taxpayer. Sets forth the amount of the credit. 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 232 as follows:

(35 ILCS 5/232 new)

Sec. 232. Employment credit; COVID-19.

(a) For taxable years that begin on or after January 1, 2020 and begin prior to January 1, 2025, each employer that employs an average of 500 or fewer employees during the taxable year is entitled to a credit against the taxes imposed by subsections (a) and (b) of Section 201 for each qualified employee hired by the employer to work at a location in the State during the taxable year. If the taxpayer employs an average of 500 or fewer employees, but more than 100 employees, during the taxable year, then the amount of the credit shall be $2,500 per qualified employee. If the taxpayer employs an average of 100 or fewer employees during the taxable year, then the amount of the credit shall be $5,000 per qualified employee. Eligible taxpayers shall apply to the Department of Commerce and Economic Opportunity for the credit under this Section. The Department of Commerce and Economic Opportunity shall award no more than $100,000,000 in tax credits under this Section during the term of the program. Credits shall be awarded on a first-come-first-served basis.

(b) For partners, shareholders of subchapter S corporations, and members of limited liability companies, if the liability company is treated as a partnership for purposes of federal and State income taxation, there shall be allowed a credit under this Section to be determined 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.

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

(d) As used in this Section, "qualified employee" means a resident of the State who is employed by the taxpayer and was unemployed as a result of the COVID-19 pandemic immediately prior to the date he or she was hired by the taxpayer.

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