101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3992

 

Introduced 5/20/2020, by Sen. Ram Villivalam

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/232 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for employers who hire residents of the State to work in the fields of technology, health care, or manufacturing if those residents were unemployed as a result of the COVID-19 pandemic. Sets forth the amount of the credit. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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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. Employment credit; COVID-19.
8    (a) For taxable years that begin on or after January 1,
92020 and begin prior to January 1, 2025, each employer is
10entitled to a credit against the taxes imposed by subsections
11(a) and (b) of Section 201 for each qualified employee hired by
12the employer to work at a location in the State during the
13taxable year. If the taxpayer employs an average of more than
14500 employees during the taxable year, then the amount of the
15credit shall be $1,500 per qualified employee. If the taxpayer
16employs an average of 500 or fewer employees, but more than 100
17employees, during the taxable year, then the amount of the
18credit shall be $2,500 per qualified employee. If the taxpayer
19employs an average of 100 or fewer employees during the taxable
20year, then the amount of the credit shall be $5,000 per
21qualified employee.
22    (b) For partners, shareholders of subchapter S
23corporations, and members of limited liability companies, if

 

 

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1the liability company is treated as a partnership for purposes
2of federal and State income taxation, there shall be allowed a
3credit under this Section to be determined in accordance with
4the determination of income and distributive share of income
5under Sections 702 and 704 and subchapter S of the Internal
6Revenue Code.
7    (c) The credit or credits may not reduce the taxpayer's
8liability to less than zero. If the amount of the credit or
9credits exceeds the taxpayer's liability, the excess may be
10carried forward and applied against the taxpayer's liability
11for up to 5 succeeding taxable years. The credit or credits
12shall be applied to the earliest year for which there is a tax
13liability. If there are credits from more than one taxable year
14that are available to offset a liability, the earlier credit
15shall be applied first.
16    (d) As used in this Section, "qualified employee" means a
17resident of the State who is employed by the taxpayer in the
18fields of technology, health care, or manufacturing and was
19unemployed as a result of the COVID-19 pandemic immediately
20prior to the date he or she was hired by the taxpayer.
 
21    Section 99. Effective date. This Act takes effect upon
22becoming law.