103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4002
 
Introduced 2/28/2023, by Rep. Dave Vella
 
SYNOPSIS AS INTRODUCED:
 

 
35 ILCS 5/234 new

     Amends the Illinois Income Tax Act. Creates an income tax credit for  taxpayers who employ a veteran with a service connected disability for a period of at least 12 continuous months immediately before the end of   the taxable year. Provides that the credit is in an amount equal to the percentage of disability suffered by the veteran multiplied by the employee's wage base. Provides that the veteran's wage base is the first $5,000 dollars in wages or compensation actually paid to the employee by the employer during the taxable year.
  


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A BILL FOR
 

  
HB4002LRB103 27284 HLH 53655 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. Employment of veterans with disabilities.
8    (1) For taxable years beginning on or after January 1, 
92024, a taxpayer is entitled to a credit against the taxes 
10imposed by subsections (a) and (b) of Section 201 if the 
11taxpayer employs a veteran with a service connected disability 
12and the veteran has been employed continuously by the taxpayer 
13for a period of at least 12 months immediately before the end 
14of the taxable year. The amount of the credit shall be equal to 
15the percentage of disability suffered by the veteran, as 
16certified by the United States Department of Veterans Affairs, 
17multiplied by the employee's wage base. As used in this 
18Section, the employee's wage base is the first $5,000 dollars 
19in wages or compensation actually paid to the employee by the 
20employer during the taxable year. 
21    (b) In no event shall a credit under this Section reduce 
22the taxpayer's liability to less than zero. If the amount of 
23the credit exceeds the tax liability for the year, the excess 
 
 
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1may be carried forward and applied to the tax liability of the 
25 taxable years following the excess credit year. The tax 
3credit shall be applied to the earliest year for which there is 
4a tax liability. If there are credits for more than one year 
5that are available to offset a liability, the earlier credit 
6shall be applied first. 
7    (c) For partners of partnerships and shareholders of 
8Subchapter S

corporations, there shall be allowed a credit 
9under this Section to be determined in accordance with the 
10determination of income and distributive share of income under 
11Sections 702 and 704 and Subchapter S of the Internal Revenue 
12Code. 
13    (d) This Section is exempt from the provisions of Section 
14250.