HB3484 103RD GENERAL ASSEMBLY

LRB103 28949 HLH 55335 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB3484

Introduced 2/17/2023, by Rep. Maurice A. West, II

SYNOPSIS AS INTRODUCED:

35 ILCS 5/234 new

Amends the Illinois Income Tax Act. Creates an income tax credit for each taxpayer who employs a qualified student as part of a College and Career Pathways Endorsement program in the amount of $500 for each qualified student. Provides that the taxpayer is entitled to an additional amount of up to $1,000 for each student if the student resides in an underserved area or the employer's principal place of business is located in an underserved area. Requires the Department of Revenue to adopt any necessary rules.

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 234 as follows:

(35 ILCS 5/234 new)

Sec. 234. Credit for career development experiences.

(a) For tax years beginning on or after January 1, 2024, each taxpayer who employs a qualified student as part of a College and Career Pathways Endorsement program is entitled to a credit against the taxes imposed by subsections (a) and (b) of Section 201 in the amount of $500 for each qualified student. The taxpayer is entitled to an additional credit of up to $1,000 for each student if (1) the student resides in an underserved area or (2) the employer's principal place of business is located in an underserved area.

(b) As used in this Section:

"Qualified school" means any Illinois public or nonpublic secondary school that is an institution of secondary education that has an approved College and Career Pathways Endorsement program in manufacturing and technology from the State Board of Education.

"Qualified student" means an individual who is: (1) an Illinois resident; (2) at least 16 at the close of the school year for which a credit is sought; (3) enrolled in a qualified school; and (4) enrolled in a College and Career Pathways Endorsement program under Section 80 of the Postsecondary and Workforce Readiness Act for manufacturing and technology.

(c) For partners and shareholders of Subchapter S corporations, 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.

(d) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The tax credit shall be applied to the earliest year for which there is a tax liability. If there are credits for more than one year that are available to offset a liability, the earlier credit shall be applied first.

(e) This Section is exempt from the provisions of Section 250.

(f) The Department shall adopt any rules necessary to implement and administer this Section.