Revenue Committee
Filed: 4/25/2006
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 1279




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    AMENDMENT NO. ______. Amend Senate Bill 1279 as follows:
 
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on page 2, by replacing lines 28 through 30 with the following:
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"consisting of 8 members of the General Assembly, 2 of whom are 
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appointed by the Speaker of the House of Representatives, 2 of 
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whom are appointed by the President of the Senate, 2 of whom 
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are appointed by the Minority Leader of the House of 
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Representatives, and 2 of whom are appointed by the Minority 
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Leader of the Senate."; and
 
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on page 3, by replacing lines 24 through 26 with the following:
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"consisting of 8 members of the General Assembly, 2 of whom are 
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appointed by the Speaker of the House of Representatives, 2 of 
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whom are appointed by the President of the Senate, 2 of whom 
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are appointed by the Minority Leader of the House of 
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Representatives, and 2 of whom are appointed by the Minority 
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Leader of the Senate."; and
 
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on page 4, by replacing lines 5 through 28 with the following:
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    "(a) For each taxable year beginning on or after January 1, 
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2007, each taxpayer is entitled to a credit against the tax 
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imposed by subsections (a) and (b) of Section 201 of this Act 
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in an amount equal to 5% of qualified wages paid by the 
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taxpayer during the taxable year to one or more Illinois 
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residents who are qualified ex-offenders.  The total credit 
 


 






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allowed to a taxpayer with respect to each qualified 
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ex-offender may not exceed $600 for all taxable years. For 
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partners, shareholders of Subchapter S corporations, and 
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owners of limited liability companies, if the liability company 
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is treated as a partnership for purposes of federal and State 
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income taxation, there shall be allowed a credit under this 
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Section to be determined in accordance with the determination 
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of income and distributive share of income under Sections 702 
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and 704 and Subchapter S of the Internal Revenue Code.
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    (b) For purposes of this Section, "qualified wages":
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        (1) includes only wages that are subject to federal 
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    unemployment tax under Section 3306 of the Internal Revenue 
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    Code, without regard to any dollar limitation contained in 
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    that Section;
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        (2) does not include any amounts paid or incurred by an 
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    employer for any period to any qualified ex-offender for 
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    whom the employer receives federally funded payments for 
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    on-the-job training of that qualified ex-offender for that 
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    period;

and
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        (3) includes only wages attributable to service 
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    rendered during the one-year period beginning with the day 
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    the qualified ex-offender begins work for the employer.
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    If the taxpayer has received any payment from a program 
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established under Section 482(e)(1) of the federal Social 
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Security Act with respect to a qualified ex-offender, then, for 
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purposes of calculating the credit under this Section, the 
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amount of the qualified wages paid to that qualified 
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ex-offender must be reduced   by the amount of the payment.
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    (c) For purposes of this Section, "qualified ex-offender" 
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means any person who:
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        (1) is an eligible offender, as defined under Section 
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    5-5.5-5 of the Unified Code of Corrections;
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        (2) was sentenced to a period of incarceration in an 
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    Illinois adult correctional center; and
 


 






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        (3) was hired by the taxpayer within one year after 
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    being released from an Illinois adult correctional center.
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    (d) In no event shall a credit under this Section reduce"; 
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and

 
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on page 5, line 11, after "year.", by inserting the following:
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"For partners, shareholders of Subchapter S corporations, and 
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owners of limited liability companies, if the liability company 
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is treated as a partnership for purposes of federal and State 
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income taxation, there shall be allowed a credit under this 
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Section to be determined in accordance with the determination 
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of income and distributive share of income under Sections 702 
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and 704 and Subchapter S of the Internal Revenue Code."; and
 
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on page 5, line 18, after "(iii)", by inserting "has provided, 
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to the taxpayer, documentation showing that he or she".