HB3399 98TH GENERAL ASSEMBLY

LRB098 08349 HLH 38454 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3399

Introduced , by Rep. Michael P. McAuliffe

SYNOPSIS AS INTRODUCED:

35 ILCS 5/224 new

Amends the Illinois Income Tax Act. Provides that each taxpayer is allowed a credit against the tax imposed under the Act in an amount equal to a percentage of wages paid to an employee who was drawing unemployment compensation at the time of hire and who has been employed by the taxpayer as a full-time employee for a period of 12 consecutive months at any point during the taxable year.

FISCAL NOTE ACT MAY APPLY

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 224 as follows:

(35 ILCS 5/224 new)

Sec. 224. Credit for wages paid to recently unemployed persons.

(a) Each taxpayer is allowed a credit against the tax imposed by subsections (a) and (b) of Section 201 in an amount equal to a percentage of wages paid to an employee who, as certified by the Illinois Department of Employment Security, was drawing unemployment compensation, or whose unemployment benefits had expired, at the time of hire and who has been employed by the taxpayer as a full-time employee for a period of 12 consecutive months at any point during the taxable year. The credit shall be calculated as follows:

(1) fifty percent of wages paid if the employee's wages are not less than $14 per hour at any point during the taxable year;

(2) forty percent of wages paid if the employee's wages are less than $14 per hour but not less than $12 per hour at any point during the taxable year;

(3) thirty-five percent of wages paid if the employee's wages are less than $12 per hour but not less than $10 per hour at any point during the taxable year; and

(4) zero percent of wages paid if the employee's wages are less than $10 per hour at any point during the taxable year.

(b) For purposes of this Section, "full-time employee" means an employee who works no less than 37.5 hours per week.

(c) The tax credit may not reduce the taxpayer's liability to less than zero. If the amount of the credit exceeds the income tax liability for the applicable tax year, then the excess credit may not be refunded to, or transferred by, the taxpayer.

(d) The tax credit may be claimed for only one taxable year.

(e) Partners, shareholders of subchapter S corporations, and owners of limited liability companies (if the limited liability company is treated as a partnership for purposes of federal and State income taxation) are entitled to a credit under this Section to be determined in accordance with the determination of income and distributive share of income under Sections 702 and 703 and subchapter S of the Internal Revenue Code.