Sen. David Koehler
Filed: 5/24/2007
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 5




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    AMENDMENT NO. ______. Amend Senate Bill 5, AS AMENDED, with 
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reference to page and line numbers of Senate Amendment No. 1, 
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by replacing line 24 on page 136, all of pages 137 through 143, 
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and lines 1 through 21 on page 144 with the following:

 
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"ARTICLE 50.  ILLINOIS COVERED ASSESSMENT ACT

 
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PART 1.  SHORT TITLE AND CONSTRUCTION

 
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    Section 50-101. Short title. This Act may be cited as the 
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Illinois Covered Assessment Act. All references in this Article 
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to "this Act" mean this Article.
 
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    Section 50-102. Construction. Except as otherwise 
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expressly provided or clearly appearing from the context, any 
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term used in this Act shall have the same meaning as when used 
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in a comparable context in the Illinois Income Tax Act as in 
 


 






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effect for the taxable year.
 
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PART 2.  TAX IMPOSED

 
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    Section 50-201. Tax imposed. 
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    (a) A tax is hereby imposed on each employer for the 
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privilege of hiring employees in this State at the rate of 3% 
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of the wages paid to Illinois employees by the employer during 
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the taxable year, provided that the tax on wages paid by the 
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employer to any single employee shall not exceed $7,500 for the 
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taxable year.


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    (b) The tax imposed under this Act shall apply to wages 
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paid on or after July 1, 2008.


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    (c) The tax imposed under this Act is a tax on the 
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employer, and shall not be withheld from wages paid to 
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employees or otherwise be collected from employees or reduce 
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the compensation paid to employees.

 
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    Section 50-202. Credits. 
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    (a) For each taxable year, an employer whose total 
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expenditures for health care for Illinois employees exceed 4% 
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of the wages paid to Illinois employees for that taxable year 
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shall be entitled to a credit equal to 3% of the wages paid to 
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Illinois employees for that taxable year.


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    (b) If the tax otherwise due under subsection (a) of 
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Section 50-201 of this Act with respect to the wages of any 
 


 






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employee of the employer is $7,500, the credit allowed in 
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subsection (a) of this Section shall be computed without taking 
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into account any wages paid to that employee or any 
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expenditures for health care incurred with respect to that 
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employee, and, in addition to the credit so computed, the 
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employer shall be allowed a credit of $7,500 with respect to 
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that employee if the expenditures for health care incurred with 
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respect to that employee exceed $10,000.
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    (c) For purposes of determining whether total expenditures 
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for health care for Illinois employees exceed 4% of the wages 
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paid to Illinois employees for a taxable year, the wages paid 
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to and expenditures for health care for any Illinois employee 
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with health care coverage provided by another employer of that 
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employee, or with health care coverage as a dependent through 
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another employer, are disregarded.".