SB1583 103RD GENERAL ASSEMBLY

LRB103 27698 HLH 54075 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB1583

Introduced 2/8/2023, by Sen. Tom Bennett

SYNOPSIS AS INTRODUCED:

35 ILCS 5/234 new

Amends the Illinois Income Tax Act. Creates a credit in an amount equal to 10% of the stipend or salary paid by the taxpayer to up to (i) 5 qualified college interns or (ii) 5 qualified high school interns during the taxable year. Provides that no taxpayer may claim more than $5,000 in total credits under that Section for all taxable years combined. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

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 internship employment.

(a) For each taxable year ending on or after December 31, 2023, each taxpayer is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to 10% of the stipend or salary paid by the taxpayer to up to (i) 5 qualified college interns or (ii) 5 qualified high school interns during the taxable year. No taxpayer may claim more than $5,000 in total credits under this Section for all taxable years combined. For partners, shareholders of Subchapter S corporations, and owners of limited liability companies, if the liability company is treated as a partnership for purposes of federal and State income taxation, 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.

(b) For purposes of this Section:

"Qualified college intern" means a student (i) who is enrolled at an Illinois institution of higher education or a vocational technical education program and is seeking a degree or certification of completion in a major field of study closely related to the work experience performed for the taxpayer, (ii) whose internship is taken for academic credit or counts toward the completion of a vocational technical education program, (iii) who is supervised and evaluated by the taxpayer, and (iv) whose internship position is located in Illinois.

"Qualified high school intern" means a student (i) who is enrolled in an Illinois high school, (ii) whose internship is taken for academic credit or counts toward the completion of an education program, (iii) who is supervised and evaluated by the taxpayer, and (iv) whose internship position is located in Illinois.

(c) 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 taxpayer's liability for the taxable year, the excess credit amounts may not be carried forward, carried back, or refunded to the taxpayer.

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

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