103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4002

 

Introduced 2/28/2023, by Rep. Dave Vella

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/234 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who employ a veteran with a service connected disability for a period of at least 12 continuous months immediately before the end of the taxable year. Provides that the credit is in an amount equal to the percentage of disability suffered by the veteran multiplied by the employee's wage base. Provides that the veteran's wage base is the first $5,000 dollars in wages or compensation actually paid to the employee by the employer during the taxable year.


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A BILL FOR

 

HB4002LRB103 27284 HLH 53655 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 234 as follows:
 
6    (35 ILCS 5/234 new)
7    Sec. 234. Employment of veterans with disabilities.
8    (1) For taxable years beginning on or after January 1,
92024, a taxpayer is entitled to a credit against the taxes
10imposed by subsections (a) and (b) of Section 201 if the
11taxpayer employs a veteran with a service connected disability
12and the veteran has been employed continuously by the taxpayer
13for a period of at least 12 months immediately before the end
14of the taxable year. The amount of the credit shall be equal to
15the percentage of disability suffered by the veteran, as
16certified by the United States Department of Veterans Affairs,
17multiplied by the employee's wage base. As used in this
18Section, the employee's wage base is the first $5,000 dollars
19in wages or compensation actually paid to the employee by the
20employer during the taxable year.
21    (b) In no event shall a credit under this Section reduce
22the taxpayer's liability to less than zero. If the amount of
23the credit exceeds the tax liability for the year, the excess

 

 

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1may be carried forward and applied to the tax liability of the
25 taxable years following the excess credit year. The tax
3credit shall be applied to the earliest year for which there is
4a tax liability. If there are credits for more than one year
5that are available to offset a liability, the earlier credit
6shall be applied first.
7    (c) For partners of partnerships and shareholders of
8Subchapter S corporations, there shall be allowed a credit
9under this Section to be determined in accordance with the
10determination of income and distributive share of income under
11Sections 702 and 704 and Subchapter S of the Internal Revenue
12Code.
13    (d) This Section is exempt from the provisions of Section
14250.