093_SB1437

 
                                     LRB093 10911 SJM 11435 b

 1        AN ACT concerning taxes.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Illinois  Income Tax Act is amended by
 5    changing Section 210.5 as follows:

 6        (35 ILCS 5/210.5)
 7        Sec. 210.5.  Tax credit for employee child care.
 8        (a)  Each corporate taxpayer  is  entitled  to  a  credit
 9    against the tax imposed by subsections (a) and (b) of Section
10    201  of  this Act in an amount equal to (i) for taxable years
11    ending on or  after  December  31,  2000  and  on  or  before
12    December  31, 2004, 30% of the start-up costs expended by the
13    corporate taxpayer to provide a child care facility  for  the
14    children  of  its employees and (ii) for taxable years ending
15    on or after December 31, 2000, 5% of the annual  amount  paid
16    by  the  corporate  taxpayer  in  providing  the  child  care
17    facility  for  the children of its employees.  The provisions
18    of Section 250 do not apply to the 5% credit under item  (ii)
19    of  this  subsection.  If the 5% credit authorized under item
20    (ii) of this subsection is claimed, the 5% credit  authorized
21    under Section 210 cannot also be claimed.
22        To  receive the tax credit under this Section a corporate
23    taxpayer may either independently provide and operate a child
24    care facility for the children of its  employees  or  it  may
25    join  in a partnership with one or more other corporations to
26    jointly provide and operate a child  care  facility  for  the
27    children of employees of the corporations in the partnership.
28        (b)  The   tax  credit  may  not  reduce  the  taxpayer's
29    liability to less than zero.  If the amount of the tax credit
30    exceeds the tax liability for the year,  the  excess  may  be
31    carried  forward  and  applied  to the tax liability of the 5
 
                            -2-      LRB093 10911 SJM 11435 b
 1    taxable years following the excess credit year.   The  credit
 2    must be applied to the earliest year for which there is a tax
 3    liability.   If there are credits from more than one tax year
 4    that are available to offset a liability,  then  the  earlier
 5    credit must be applied first.
 6        (c)  As  used  in  this  Section,  "start-up costs" means
 7    planning,  site-preparation,  construction,  renovation,   or
 8    acquisition  of  a  child  care  facility.   As  used in this
 9    Section, "child care facility" is limited  to  a  child  care
10    facility located in Illinois.
11        (d)  A corporate taxpayer claiming the credit provided by
12    this  Section  shall  maintain and record such information as
13    the Department may require by rule regarding the  child  care
14    facility for which the credit is claimed.
15    (Source: P.A. 91-930, eff. 12-15-00.)