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.


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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 232 as follows:
 
6    (35 ILCS 5/232 new)
7    Sec. 232. Employment credit; COVID-19.
8    (a) For taxable years that begin on or after January 1,
92020 and begin prior to January 1, 2025, each employer that
10employs an average of 500 or fewer employees during the taxable
11year is entitled to a credit against the taxes imposed by
12subsections (a) and (b) of Section 201 for each qualified
13employee hired by the employer to work at a location in the
14State during the taxable year. If the taxpayer employs an
15average of 500 or fewer employees, but more than 100 employees,
16during the taxable year, then the amount of the credit shall be
17$2,500 per qualified employee. If the taxpayer employs an
18average of 100 or fewer employees during the taxable year, then
19the amount of the credit shall be $5,000 per qualified
20employee. Eligible taxpayers shall apply to the Department of
21Commerce and Economic Opportunity for the credit under this
22Section. The Department of Commerce and Economic Opportunity
23shall award no more than $100,000,000 in tax credits under this

 

 

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1Section during the term of the program. Credits shall be
2awarded on a first-come-first-served basis.
3    (b) For partners, shareholders of subchapter S
4corporations, and members of limited liability companies, if
5the liability company is treated as a partnership for purposes
6of federal and State income taxation, there shall be allowed a
7credit under this Section to be determined in accordance with
8the determination of income and distributive share of income
9under Sections 702 and 704 and subchapter S of the Internal
10Revenue Code.
11    (c) The credit or credits may not reduce the taxpayer's
12liability to less than zero. If the amount of the credit or
13credits exceeds the taxpayer's liability, the excess may be
14carried forward and applied against the taxpayer's liability
15for up to 5 succeeding taxable years. The credit or credits
16shall be applied to the earliest year for which there is a tax
17liability. If there are credits from more than one taxable year
18that are available to offset a liability, the earlier credit
19shall be applied first.
20    (d) As used in this Section, "qualified employee" means a
21resident of the State who is employed by the taxpayer and was
22unemployed as a result of the COVID-19 pandemic immediately
23prior to the date he or she was hired by the taxpayer.
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.