102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB3121

 

Introduced 2/19/2021, by Rep. Edgar Gonzalez, Jr.

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/232 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayer-employers that offer health insurance to all of their full-time or full-time equivalent employees in an amount equal to a percentage of the premiums paid by the taxpayer. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB3121LRB102 10903 HLH 16233 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. Tax credit for employer-sponsored health
8insurance.
9    (a) For taxable years beginning on or after January 1,
102022, each taxpayer-employer that offers health insurance to
11all of its full-time or full-time equivalent employees is
12entitled to a credit against the taxes imposed by subsections
13(a) and (b) of Section 201 as set forth in this Section. The
14taxpayer may not claim a credit under this Section if those
15amounts were not included in the taxpayer's federal adjusted
16gross income.
17    (b) The amount of the credit shall be as follows:
18        (1) if the taxpayer employs an average of 25 or fewer
19    employees during the taxable year, then the amount of the
20    credit shall be 50% of the amount paid by the taxpayer as
21    premiums for its employer-sponsored health insurance;
22        (2) if the taxpayer employs an average of more than 25
23    employees during the taxable year, then the credit shall

 

 

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1    be 50% of the amount paid by the taxpayer as premiums for
2    its employer-sponsored health insurance for the first 25
3    employees and 25% of the amount paid by the taxpayer as
4    premiums for the remainder of its employees.
5    (c) The tax credit may not reduce the taxpayer's liability
6to less than zero. If the amount of the tax credit exceeds the
7tax liability for the year, the excess may be carried forward
8and applied to the tax liability of the 5 taxable years
9following the excess credit year. The credit must be applied
10to the earliest year for which there is a tax liability. If
11there are credits from more than one tax year that are
12available to offset a liability, then the earlier credit must
13be applied first.
14    (d) For partners, shareholders of Subchapter S
15corporations, and owners of limited liability companies, if
16the liability company is treated as a partnership for the
17purposes of federal and State income taxation, there shall be
18allowed a credit under this Section to be determined in
19accordance with the determination of income and distributive
20share of income under Sections 702 and 704 and Subchapter S of
21the Internal Revenue Code.
22    (e) This Section is exempt from the provisions of Section
23250.
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.