103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1078

 

Introduced 1/12/2023, by Rep. Mark L. Walker

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/240 new

    Amends the Illinois Income Tax Act. Provides for a credit for taxpayers who hire full-time employees to fill positions at a location in a county with fewer than 250,000 inhabitants. Effective immediately.


LRB103 05221 SPS 50237 b

 

 

A BILL FOR

 

HB1078LRB103 05221 SPS 50237 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
5adding Section 240 as follows:
 
6    (35 ILCS 5/240 new)
7    Sec. 240. Credit for full-time employees in a county with
8fewer than 250,000 inhabitants.
9    (a) For taxable years beginning on or after January 1,
102023, each taxpayer that hires a full-time employee to fill a
11position at a location in a county in the State with fewer than
12250,000 inhabitants is entitled to a credit against the taxes
13imposed by subsections (a) and (b) of Section 201 of this Act
14in an amount not to exceed $5,000 per eligible employee. The
15credit may be taken for the taxable year in which the employee
16is hired by the taxpayer and for the next taxable year if the
17employee remains employed with that taxpayer in the next
18taxable year. The amount of the credit shall be $5,000 in each
19taxable year, multiplied by a fraction the numerator of which
20is the number of days the employee is employed by the taxpayer
21during the taxable year and the denominator of which is 365.
22    (b) For partners, shareholders of Subchapter S
23corporations, and owners of limited liability companies, if

 

 

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1the liability company is treated as a partnership for purposes
2of federal and State income taxation, there shall be allowed a
3credit under this Section to be determined in accordance with
4the determination of income and distributive share of income
5under Sections 702 and 704 and Subchapter S of the Internal
6Revenue Code.
7    (c) In no event shall a credit under this Section reduce
8the taxpayer's liability to less than zero. If the amount of
9the credit exceeds the tax liability for the year, the excess
10may be carried forward and applied to the tax liability of the
115 taxable years following the excess credit year. The tax
12credit shall be applied to the earliest year for which there is
13a tax liability. If there are credits for more than one year
14that are available to offset a liability, the earlier credit
15shall be applied first.
16    (d) As used in this Section, "full-time employee" means an
17individual who is employed for consideration for at least 35
18hours each week or who renders any other standard of service
19generally accepted by industry custom or practice as full-time
20employment. An individual for whom a W-2 is issued by a
21Professional Employer Organization (PEO) is a full-time
22employee if employed in the service of the taxpayer for
23consideration for at least 35 hours each week or renders to the
24taxpayer any other standard of service generally accepted by
25industry custom or practice as full-time employment.
26    (e) This Section is exempt from the provisions of Section

 

 

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1250.
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.