102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1494
 
Introduced 2/17/2021, by Rep. Emanuel Chris Welch
 
SYNOPSIS AS INTRODUCED:
 
  
35 ILCS 5/210.5

    Amends the Illinois Income Tax Act.  Makes a technical change in a Section
concerning tax credits for providing child care for employees.



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A BILL FOR
 


HB1494LRB102 03510 HLH 13523 b



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 
5changing Section 210.5 as follows:
 



6    (35 ILCS 5/210.5)



7    Sec. 210.5. Tax credit for employee child care. 

8    (a) Each corporate taxpayer is entitled
to a credit 
9against the
the tax imposed by subsections (a) and (b) of 
10Section 201
in an amount equal to (i) for taxable years ending 
11on or after December 31,
2000 and on or before December 31, 
122004 and for taxable years ending on or after December 31, 
132007, 30% of the start-up costs expended by
the corporate 
14taxpayer to provide a child care
facility for the children of 
15its employees and
(ii) for taxable years ending on or after 
16December 31, 2000, 5% of the annual
amount paid
by the 
17corporate taxpayer in providing the child care facility for 
18the children
of its employees.  The provisions of Section 250 
19do not apply to the credits allowed under this Section.  If the 
205% credit authorized under item
(ii) of this subsection is 
21claimed, the 5% credit authorized under Section 210
cannot 
22also be claimed.
23    To receive the tax credit under this Section a corporate 
 
 
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1taxpayer may either
independently provide and operate a child 
2care facility for the children of its
employees or it may join 
3in a partnership with one or more other corporations
to 
4jointly provide and operate a child care facility for the 
5children of
employees of the corporations in the partnership.

6    (b) The tax credit may not reduce the taxpayer's liability 
7to less than
zero.  If the amount of the tax credit exceeds the 
8tax liability for the year,
the excess may be carried forward 
9and applied to the tax liability of the 5
taxable years 
10following the excess credit year.  The credit must be applied 
11to
the earliest year for which there is a tax liability.  If 
12there are credits
from more than one tax year that are 
13available to offset a liability, then the
earlier credit must 
14be applied first.

15    (c) As used in this Section, "start-up costs" means 
16planning,
site-preparation, construction, renovation, or 
17acquisition of a child care
facility.  As used in this Section, 
18"child care facility" is limited to a child
care facility 
19located in Illinois.

20    (d) A corporate taxpayer claiming the credit provided by 
21this Section
shall maintain and record such information as the 
22Department may require by
rule regarding the child care 
23facility for which the credit is claimed.

24(Source: P.A. 95-648, eff. 10-11-07.)