102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1858

 

Introduced 2/17/2021, by Rep. Dagmara Avelar

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/232 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for employers that provide reimbursement to employees for costs associated with commuting to and from a worksite in the State. Provides that the credit shall be equal to 50% of those costs, but not to exceed $100 per employee per month. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1858LRB102 10674 HLH 16003 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
5adding Section 232 as follows:
 
6    (35 ILCS 5/232 new)
7    Sec. 232. Commuter reimbursement expenses.
8    (a) For taxable years beginning on or after January 1,
92022, each employer that provides reimbursement to its
10employees for costs associated with commuting to and from a
11worksite in the State is entitled to a credit against the taxes
12imposed under subsections (a) and (b) of Section 201 in an
13amount equal to 50% of those costs. The amount of the credit
14may not exceed $100 per employee per month. In no event may the
15credit under this Section reduce the taxpayer's liability to
16less than zero. The credit may not be carried forward or back.
17    (b) Costs that are eligible for reimbursement include
18passes, tickets, fare cards, vouchers, or any other item
19required to ride a public or private transit system, not
20including taxi services.
21    (c) For partners, shareholders of subchapter S
22corporations, and owners of limited liability companies, if
23the liability company is treated as a partnership for purposes

 

 

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1of federal and State income taxation, there shall be allowed a
2credit under this Section to be determined in accordance with
3the determination of income and distributive share of income
4under Sections 702 and 704 and subchapter S of the Internal
5Revenue Code.
6    (d) This Section is exempt from the provisions of Section
7250.
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.