101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5625

 

Introduced , by Rep. Mike Murphy

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/232 new

    Amends the Illinois Income Tax Act. Provides that an employer that incurs expenses to train a qualifying individual to obtain a commercial driver's license or to operate a commercial motor vehicle may apply to the Department of Revenue for an income tax credit in an amount equal to 50% of those training expenses. Set forth aggregate credit limits and limits the amount of credits available to any particular employer under those provisions.


LRB101 19913 HLH 69436 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB5625LRB101 19913 HLH 69436 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by adding
5Section 232 as follows:
 
6    (35 ILCS 5/232 new)
7    Sec. 232. Training expenses for a commercial driver's
8license.
9    (a) As used in this Section:
10    "Qualifying individual" means an individual who holds a
11valid commercial driver's license or who is eligible to obtain
12such a license.
13    "Training expense" means any cost customarily incurred by
14an employer to train a qualifying individual to obtain a
15commercial driver's license or to operate a commercial motor
16vehicle. An employee's wages are not considered a training
17expense.
18    (b) For taxable years ending on or after December 31, 2020
19and ending on or before December 31, 2022, an employer that
20incurs training expenses during the taxable year may apply to
21the Department for a credit against the tax imposed by
22subsections (a) and (b) of Section 201 in an amount equal to
2350% of those training expenses. The Department shall certify no

 

 

HB5625- 2 -LRB101 19913 HLH 69436 b

1more than $50,000 in expenses per year for any one employer.
2The Department shall certify no more than $3,000,000 in
3training expenses for all employers in any year, increased by
4the sum of tax credit-eligible expenses the Department was
5authorized to certify for preceding years that were not the
6basis of a tax credit certificate issued under this Section in
7the current year or any preceding year.
8    (c) For partners, shareholders of subchapter S
9corporations, and members of limited liability companies, if
10the liability company is treated as a partnership for purposes
11of federal and State income taxation, there shall be allowed a
12credit under this subsection to be determined in accordance
13with the determination of income and distributive share of
14income under Sections 702 and 704 and subchapter S of the
15Internal Revenue Code.
16    (d) The credit or credits may not reduce the taxpayer's
17liability to less than zero. If the amount of the credit or
18credits exceeds the taxpayer's liability, the excess may be
19carried forward and applied against the taxpayer's liability in
20next 5 succeeding calendar years. The credit or credits shall
21be applied to the earliest year for which there is a tax
22liability. If there are credits from more than one taxable year
23that are available to offset a liability, the earlier credit
24shall be applied first.