103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2425

 

Introduced 2/15/2023, by Rep. Martin J. Moylan

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/234 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who employ qualified employees. Provides that the term "qualified employee" means an individual who (i) is employed by the taxpayer as an engineer and (ii) graduated from an engineering program at an accredited institution of higher learning with a Bachelor's degree or higher within the 5 years immediately preceding the taxable year. Provides that the credit shall be equal to (i) 10% of the compensation paid by the taxpayer during the taxable year to qualified employees who graduated from an engineering program at an accredited institution of higher learning in Illinois or (ii) 5% of the compensation paid by the taxpayer during the taxable year to qualified employees who graduated from an engineering program an accredited institution of higher learning not located in Illinois. Effective immediately.


LRB103 30427 HLH 56857 b

 

 

A BILL FOR

 

HB2425LRB103 30427 HLH 56857 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 234 as follows:
 
6    (35 ILCS 5/234 new)
7    Sec. 234. Retaining Illinois Students of Engineering
8(RISE) credit.
9    (a) For tax years ending on or after December 31, 2023, a
10taxpayer shall be allowed a credit against the tax imposed by
11subsections (a) and (b) of Section 201 for compensation paid
12to qualified employees during the taxable year. The credit
13shall be equal to (i) 10% of the compensation paid by the
14taxpayer during the taxable year to qualified employees who
15graduated from an engineering program at an accredited
16institution of higher learning in Illinois or (ii) 5% of the
17compensation paid by the taxpayer during the taxable year to
18qualified employees who graduated from an engineering program
19at an accredited institution of higher learning not located in
20Illinois.
21    (b) The credit or credits may not reduce the taxpayer's
22liability to less than zero. If the amount of the credit or
23credits exceeds the taxpayer's liability, the excess may be

 

 

HB2425- 2 -LRB103 30427 HLH 56857 b

1carried forward and applied against the taxpayer's liability
2in the following 5 taxable years or until the credit has been
3fully used, whichever occurs first.
4    (c) As used in this Section, "qualified employee" means an
5individual who (i) is employed by the taxpayer as an engineer
6and (ii) graduated from an engineering program at an
7accredited institution of higher learning with a Bachelor's
8degree or higher within the 5 years immediately preceding the
9taxable year for which the credit is claimed.
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.