103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3953

 

Introduced 5/14/2024, by Sen. Steve Stadelman

 

SYNOPSIS AS INTRODUCED:
 
New Act
35 ILCS 5/241 new
35 ILCS 5/704A

    Creates the Local Journalism Sustainability Act. Creates a credit against an employer's withholding tax liability if the employer is a local news organization. Provides that the amount of the credit is equal to 50% of the amount of wages paid by the employer to qualified journalists in the calendar year in which the credit certificate is issued, not to exceed $25,000 in credits per qualified journalist. Provides that an additional withholding tax credit of $5,000 shall be awarded for each qualified journalist who fills a new journalism position for the employer during the calendar year in which the credit certificate is issued. Provides that those credits are subject to certain limitations. Amends the Illinois Income Tax Act. Creates an income tax credit, subject to certain limitations, in an amount equal to the consideration paid during the taxable year by an eligible small business to local newspapers or local broadcast stations for advertising in this State. Effective immediately.


LRB103 40673 HLH 73417 b

 

 

A BILL FOR

 

SB3953LRB103 40673 HLH 73417 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 1. Short title. This Act may be cited as the Local
5Journalism Sustainability Act.
 
6    Section 5. Definitions.
7    "Department" means the Department of Commerce and Economic
8Opportunity.
9    "Independently owned" means, as applied to a local news
10organization, that:
11        (1) the local news organization is not a publicly
12    traded entity and no more than 5% of the beneficial
13    ownership of the local news organization is owned,
14    directly or indirectly, by a publicly traded entity; and
15        (2) the local news organization is not a subsidiary.
16    "Local news organization" means an entity that:
17        (1) engages professionals to create, edit, produce,
18    and distribute original content concerning matters of
19    public interest through reporting activities, including
20    conducting interviews, observing current events, or
21    analyzing documents or other information;
22        (2) has at least one employee who meets all of the
23    following criteria:

 

 

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1            (A) the employee is employed by the entity on a
2        full-time basis for at least 30 hours a week;
3            (B) the employee's job duties for the entity
4        consist primarily of providing coverage of Illinois or
5        local Illinois community news as described in
6        paragraph (C);
7            (C) the employee gathers, prepares, collects,
8        photographs, writes, edits, reports, or publishes
9        original local or State community news for
10        dissemination to the local or State community; and
11            (D) the employee lives within 50 miles of the
12        coverage area.
13        (3) in the case of print publications, has published
14    at least one print publication per month over the previous
15    12 months, and either holds a valid United States Postal
16    Service periodical permit or has at least 25% of its
17    content dedicated to local news;
18        (4) in the case of digital-only entities, has
19    published one piece about the community per week over the
20    previous 12 months and has at least 33% of its digital
21    audience in Illinois, averaged over a 12-month period;
22        (5) in the case of hybrid entities that have both
23    print and digital outlets, meets the requirements in
24    either paragraph (3) or (4) of this definition;
25        (6) has disclosed in its print publication or on its
26    website its beneficial ownership or, in the case of a

 

 

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1    not-for-profit entity, its board of directors;
2        (7) in the case of an entity that maintains tax status
3    under Section 501(c)(3) of the federal Internal Revenue
4    Code, has declared the coverage of local or State news as
5    the stated mission in its filings with the Internal
6    Revenue Service; and
7        (8) has not received more than 50% of its gross
8    receipts for the previous year from political action
9    committees or other entities described in Section 527 of
10    the federal Internal Revenue Code or from an organization
11    that maintains Section 501(c)(4) or 501(c)(6) status under
12    the federal Internal Revenue Code.
13    "New journalism position" means an employment position
14that results in a net increase in qualified journalists
15employed by the local news organization from January 1 of the
16preceding calendar year compared to January 1 of the calendar
17year in which a credit under this Act is sought.
18    "Qualified journalist" means a person who:
19        (1) is employed for an average of at least 30 hours per
20    week, and
21        (2) is responsible for gathering, developing,
22    preparing, directing the recording of, producing,
23    collecting, photographing, recording, writing, editing,
24    reporting, designing, presenting, distributing, or
25    publishing original news or information that concerns
26    local, regional, national, or international matters of

 

 

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1    public interest.
 
2    Section 10. Credit award. For reporting periods that begin
3on or after January 1, 2025 and before January 1, 2030,
4employers that are local news organizations and that are
5required to deduct and withhold taxes as provided in Article 7
6of the Illinois Income Tax Act are eligible to receive a credit
7against payments due under Section 704A of the Illinois Income
8Tax Act for amounts withheld during the first calendar year to
9occur after the calendar year in which the local journalism
10certificate is issued under this Act. The credit shall be
11equal to 50% of the amount of wages paid by the employer to
12qualified journalists in the calendar year in which the credit
13certificate is issued, not to exceed $25,000 in credits per
14qualified journalist. An additional credit of $5,000 shall be
15awarded against payments due under Section 704A of the
16Illinois Income Tax Act for each qualified journalist who
17fills a new journalism position for the employer during the
18calendar year in which the credit certificate is issued. No
19more than $250,000 in credits under this Act may be awarded to
20any one local news organization in a single calendar year. If
21the local news organization is not independently owned, no
22more than $500,000 in credit may be awarded in a single
23calendar year to all local news organizations that share the
24same ownership interest. The total amount in credits that may
25be awarded under this Act in any given calendar year may not

 

 

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1exceed $8,000,000, of which no more than $6,500,000 may be
2awarded for the credit that is based on wages for qualified
3journalists, and no more than $1,500,000 may be awarded for
4the additional $5,000 credit that is awarded for new
5journalism positions. Credits under this Section shall be
6awarded by the Department on a first-come, first-served basis.
7The credit for partners and shareholders of subchapter S
8corporations shall be determined as provided in Section 251.
 
9    Section 15. Application for local journalism certificate.
10    (a) In order to qualify for a tax credit award under this
11Act, an applicant must apply with the Department, in the form
12and manner required by the Department, for each year for which
13a credit under this Act is sought, providing information
14necessary to calculate the tax credit award and any additional
15information as reasonably required by the Department. A
16separate application shall be filed for each local news
17organization. The tax credit award shall be calculated each
18tax year based upon the filing by the applicant on forms
19prescribed by the Department. The Department shall cooperate
20with the Department of Revenue as needed in order to determine
21credit amount and eligibility.
22     (b) Upon satisfactory review of the application, the
23Department shall issue a local journalism certificate stating
24the amount of the tax credit award to which the applicant is
25entitled for the credit period and shall contemporaneously

 

 

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1notify the applicant and Department of Revenue upon issuance
2of the certificate.
 
3    Section 20. Powers of the Department. The Department may,
4in consultation with the Department of Revenue, adopt any
5rules necessary to administer the provisions of this Act.
 
6    Section 25. Program terms and conditions. Any documentary
7materials or data made available or received from an applicant
8by any agent or employee of the Department are confidential
9and are not public records to the extent that the materials or
10data consist of commercial or financial information regarding
11the operation of or the production of the applicant or
12recipient of any tax credit award under this Act.
 
13    Section 900. The Illinois Income Tax Act is amended by
14changing Section 704A and by adding Section 241 as follows:
 
15    (35 ILCS 5/241 new)
16    Sec. 241. Small business income tax credit for local
17journalism advertising.
18    (a) As used in this Section:
19    "Advertising" means the publication, dissemination,
20solicitation, or circulation, or visual, oral, or written
21communication of information that appears in a local newspaper
22or on a local broadcast station, for consideration paid to

 

 

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1that local newspaper or local broadcast station, and that is
2designed to directly or indirectly induce a person to purchase
3a good or service.
4    "Department" means the Department of Commerce and Economic
5Opportunity.
6    "Disqualified organization" means any organization:
7        (1) described in Section 502(c)(4) of the Internal
8    Revenue Code that is exempt from taxation under Section
9    501(a) of the Internal Revenue Code;
10        (2) described in Section 527 of the Internal Revenue
11    Code; or
12        (3) owned or controlled by one or more organizations
13    described in Section 527 of the Internal Revenue Code.
14    "Eligible small business" means a business that is
15registered in Illinois, is not a disqualified organization,
16and has fewer than 50 employees.
17    "Local newspaper" means a print or digital publication
18that:
19        (1) primarily serves the needs of the State or a
20    regional or local community in the State; and
21        (2) employs at least one journalist who resides in the
22    State and who regularly gathers, collects, photographs,
23    records, writes, or reports news or information that
24    concerns local events or other matters of local public
25    interest.
26    "Local broadcast station" means a broadcast entity

 

 

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1licensed by the Federal Communications Commission that:
2        (1) primarily serves the needs of the State or a
3    regional or local community within the State with news,
4    weather, and emergency information; and
5        (2) employs at least one journalist who resides in the
6    State and who regularly gathers, collects, photographs,
7    records, writes, or reports news or information that
8    concerns local events or other matters or local public
9    interest.
10    (b) For taxable years that begin on or after January 1,
112025 and before January 1, 2030, an eligible small business
12may apply to the Department for a credit against the tax
13imposed by subsections (a) and (b) of Section 201 of this Act.
14The credit shall be in an amount equal to the consideration
15paid during the taxable year by the eligible small business to
16local newspapers or local broadcast stations for advertising
17in this State, but not to exceed a total credit amount of
18$2,500 per taxpayer in any taxable year. The total amount of
19credits awarded under this Section may not exceed $1,500,000
20in any given taxable year. Taxpayers seeking a credit under
21this Section shall apply to the Department in the form and
22manner required by the Department. Credits under this Section
23shall be awarded by the Department on a first-come,
24first-served basis. The credit for partners and shareholders
25of subchapter S corporations shall be determined as provided
26in Section 251.

 

 

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1    (c) In no event shall a credit under this Section reduce
2the taxpayer's liability to less than zero. If the amount of
3the credit exceeds the tax liability for the year, the excess
4may be carried forward and applied to the tax liability of the
55 taxable years following the excess credit year. The tax
6credit shall be applied to the earliest year for which there is
7a tax liability. If there are credits for more than one year
8that are available to offset a liability, the earlier credit
9shall be applied first.
 
10    (35 ILCS 5/704A)
11    Sec. 704A. Employer's return and payment of tax withheld.
12    (a) In general, every employer who deducts and withholds
13or is required to deduct and withhold tax under this Act on or
14after January 1, 2008 shall make those payments and returns as
15provided in this Section.
16    (b) Returns. Every employer shall, in the form and manner
17required by the Department, make returns with respect to taxes
18withheld or required to be withheld under this Article 7 for
19each quarter beginning on or after January 1, 2008, on or
20before the last day of the first month following the close of
21that quarter.
22    (c) Payments. With respect to amounts withheld or required
23to be withheld on or after January 1, 2008:
24        (1) Semi-weekly payments. For each calendar year, each
25    employer who withheld or was required to withhold more

 

 

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1    than $12,000 during the one-year period ending on June 30
2    of the immediately preceding calendar year, payment must
3    be made:
4            (A) on or before each Friday of the calendar year,
5        for taxes withheld or required to be withheld on the
6        immediately preceding Saturday, Sunday, Monday, or
7        Tuesday;
8            (B) on or before each Wednesday of the calendar
9        year, for taxes withheld or required to be withheld on
10        the immediately preceding Wednesday, Thursday, or
11        Friday.
12        Beginning with calendar year 2011, payments made under
13    this paragraph (1) of subsection (c) must be made by
14    electronic funds transfer.
15        (2) Semi-weekly payments. Any employer who withholds
16    or is required to withhold more than $12,000 in any
17    quarter of a calendar year is required to make payments on
18    the dates set forth under item (1) of this subsection (c)
19    for each remaining quarter of that calendar year and for
20    the subsequent calendar year.
21        (3) Monthly payments. Each employer, other than an
22    employer described in items (1) or (2) of this subsection,
23    shall pay to the Department, on or before the 15th day of
24    each month the taxes withheld or required to be withheld
25    during the immediately preceding month.
26        (4) Payments with returns. Each employer shall pay to

 

 

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1    the Department, on or before the due date for each return
2    required to be filed under this Section, any tax withheld
3    or required to be withheld during the period for which the
4    return is due and not previously paid to the Department.
5    (d) Regulatory authority. The Department may, by rule:
6        (1) Permit employers, in lieu of the requirements of
7    subsections (b) and (c), to file annual returns due on or
8    before January 31 of the year for taxes withheld or
9    required to be withheld during the previous calendar year
10    and, if the aggregate amounts required to be withheld by
11    the employer under this Article 7 (other than amounts
12    required to be withheld under Section 709.5) do not exceed
13    $1,000 for the previous calendar year, to pay the taxes
14    required to be shown on each such return no later than the
15    due date for such return.
16        (2) Provide that any payment required to be made under
17    subsection (c)(1) or (c)(2) is deemed to be timely to the
18    extent paid by electronic funds transfer on or before the
19    due date for deposit of federal income taxes withheld
20    from, or federal employment taxes due with respect to, the
21    wages from which the Illinois taxes were withheld.
22        (3) Designate one or more depositories to which
23    payment of taxes required to be withheld under this
24    Article 7 must be paid by some or all employers.
25        (4) Increase the threshold dollar amounts at which
26    employers are required to make semi-weekly payments under

 

 

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1    subsection (c)(1) or (c)(2).
2    (e) Annual return and payment. Every employer who deducts
3and withholds or is required to deduct and withhold tax from a
4person engaged in domestic service employment, as that term is
5defined in Section 3510 of the Internal Revenue Code, may
6comply with the requirements of this Section with respect to
7such employees by filing an annual return and paying the taxes
8required to be deducted and withheld on or before the 15th day
9of the fourth month following the close of the employer's
10taxable year. The Department may allow the employer's return
11to be submitted with the employer's individual income tax
12return or to be submitted with a return due from the employer
13under Section 1400.2 of the Unemployment Insurance Act.
14    (f) Magnetic media and electronic filing. With respect to
15taxes withheld in calendar years prior to 2017, any W-2 Form
16that, under the Internal Revenue Code and regulations
17promulgated thereunder, is required to be submitted to the
18Internal Revenue Service on magnetic media or electronically
19must also be submitted to the Department on magnetic media or
20electronically for Illinois purposes, if required by the
21Department.
22    With respect to taxes withheld in 2017 and subsequent
23calendar years, the Department may, by rule, require that any
24return (including any amended return) under this Section and
25any W-2 Form that is required to be submitted to the Department
26must be submitted on magnetic media or electronically.

 

 

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1    The due date for submitting W-2 Forms shall be as
2prescribed by the Department by rule.
3    (g) For amounts deducted or withheld after December 31,
42009, a taxpayer who makes an election under subsection (f) of
5Section 5-15 of the Economic Development for a Growing Economy
6Tax Credit Act for a taxable year shall be allowed a credit
7against payments due under this Section for amounts withheld
8during the first calendar year beginning after the end of that
9taxable year equal to the amount of the credit for the
10incremental income tax attributable to full-time employees of
11the taxpayer awarded to the taxpayer by the Department of
12Commerce and Economic Opportunity under the Economic
13Development for a Growing Economy Tax Credit Act for the
14taxable year and credits not previously claimed and allowed to
15be carried forward under Section 211(4) of this Act as
16provided in subsection (f) of Section 5-15 of the Economic
17Development for a Growing Economy Tax Credit Act. The credit
18or credits may not reduce the taxpayer's obligation for any
19payment due under this Section to less than zero. If the amount
20of the credit or credits exceeds the total payments due under
21this Section with respect to amounts withheld during the
22calendar year, the excess may be carried forward and applied
23against the taxpayer's liability under this Section in the
24succeeding calendar years as allowed to be carried forward
25under paragraph (4) of Section 211 of this Act. The credit or
26credits shall be applied to the earliest year for which there

 

 

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1is a tax liability. If there are credits from more than one
2taxable year that are available to offset a liability, the
3earlier credit shall be applied first. Each employer who
4deducts and withholds or is required to deduct and withhold
5tax under this Act and who retains income tax withholdings
6under subsection (f) of Section 5-15 of the Economic
7Development for a Growing Economy Tax Credit Act must make a
8return with respect to such taxes and retained amounts in the
9form and manner that the Department, by rule, requires and pay
10to the Department or to a depositary designated by the
11Department those withheld taxes not retained by the taxpayer.
12For purposes of this subsection (g), the term taxpayer shall
13include taxpayer and members of the taxpayer's unitary
14business group as defined under paragraph (27) of subsection
15(a) of Section 1501 of this Act. This Section is exempt from
16the provisions of Section 250 of this Act. No credit awarded
17under the Economic Development for a Growing Economy Tax
18Credit Act for agreements entered into on or after January 1,
192015 may be credited against payments due under this Section.
20    (g-1) For amounts deducted or withheld after December 31,
212024, a taxpayer who makes an election under the Reimagining
22Energy and Vehicles in Illinois Act shall be allowed a credit
23against payments due under this Section for amounts withheld
24during the first quarterly reporting period beginning after
25the certificate is issued equal to the portion of the REV
26Illinois Credit attributable to the incremental income tax

 

 

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1attributable to new employees and retained employees as
2certified by the Department of Commerce and Economic
3Opportunity pursuant to an agreement with the taxpayer under
4the Reimagining Energy and Vehicles in Illinois Act for the
5taxable year. The credit or credits may not reduce the
6taxpayer's obligation for any payment due under this Section
7to less than zero. If the amount of the credit or credits
8exceeds the total payments due under this Section with respect
9to amounts withheld during the quarterly reporting period, the
10excess may be carried forward and applied against the
11taxpayer's liability under this Section in the succeeding
12quarterly reporting period as allowed to be carried forward
13under paragraph (4) of Section 211 of this Act. The credit or
14credits shall be applied to the earliest quarterly reporting
15period for which there is a tax liability. If there are credits
16from more than one quarterly reporting period that are
17available to offset a liability, the earlier credit shall be
18applied first. Each employer who deducts and withholds or is
19required to deduct and withhold tax under this Act and who
20retains income tax withholdings this subsection must make a
21return with respect to such taxes and retained amounts in the
22form and manner that the Department, by rule, requires and pay
23to the Department or to a depositary designated by the
24Department those withheld taxes not retained by the taxpayer.
25For purposes of this subsection (g-1), the term taxpayer shall
26include taxpayer and members of the taxpayer's unitary

 

 

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1business group as defined under paragraph (27) of subsection
2(a) of Section 1501 of this Act. This Section is exempt from
3the provisions of Section 250 of this Act.
4    (g-2) For amounts deducted or withheld after December 31,
52024, a taxpayer who makes an election under the Manufacturing
6Illinois Chips for Real Opportunity (MICRO) Act shall be
7allowed a credit against payments due under this Section for
8amounts withheld during the first quarterly reporting period
9beginning after the certificate is issued equal to the portion
10of the MICRO Illinois Credit attributable to the incremental
11income tax attributable to new employees and retained
12employees as certified by the Department of Commerce and
13Economic Opportunity pursuant to an agreement with the
14taxpayer under the Manufacturing Illinois Chips for Real
15Opportunity (MICRO) Act for the taxable year. The credit or
16credits may not reduce the taxpayer's obligation for any
17payment due under this Section to less than zero. If the amount
18of the credit or credits exceeds the total payments due under
19this Section with respect to amounts withheld during the
20quarterly reporting period, the excess may be carried forward
21and applied against the taxpayer's liability under this
22Section in the succeeding quarterly reporting period as
23allowed to be carried forward under paragraph (4) of Section
24211 of this Act. The credit or credits shall be applied to the
25earliest quarterly reporting period for which there is a tax
26liability. If there are credits from more than one quarterly

 

 

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1reporting period that are available to offset a liability, the
2earlier credit shall be applied first. Each employer who
3deducts and withholds or is required to deduct and withhold
4tax under this Act and who retains income tax withholdings
5this subsection must make a return with respect to such taxes
6and retained amounts in the form and manner that the
7Department, by rule, requires and pay to the Department or to a
8depositary designated by the Department those withheld taxes
9not retained by the taxpayer. For purposes of this subsection,
10the term taxpayer shall include taxpayer and members of the
11taxpayer's unitary business group as defined under paragraph
12(27) of subsection (a) of Section 1501 of this Act. This
13Section is exempt from the provisions of Section 250 of this
14Act.
15    (h) An employer may claim a credit against payments due
16under this Section for amounts withheld during the first
17calendar year ending after the date on which a tax credit
18certificate was issued under Section 35 of the Small Business
19Job Creation Tax Credit Act. The credit shall be equal to the
20amount shown on the certificate, but may not reduce the
21taxpayer's obligation for any payment due under this Section
22to less than zero. If the amount of the credit exceeds the
23total payments due under this Section with respect to amounts
24withheld during the calendar year, the excess may be carried
25forward and applied against the taxpayer's liability under
26this Section in the 5 succeeding calendar years. The credit

 

 

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1shall be applied to the earliest year for which there is a tax
2liability. If there are credits from more than one calendar
3year that are available to offset a liability, the earlier
4credit shall be applied first. This Section is exempt from the
5provisions of Section 250 of this Act.
6    (i) Each employer with 50 or fewer full-time equivalent
7employees during the reporting period may claim a credit
8against the payments due under this Section for each qualified
9employee in an amount equal to the maximum credit allowable.
10The credit may be taken against payments due for reporting
11periods that begin on or after January 1, 2020, and end on or
12before December 31, 2027. An employer may not claim a credit
13for an employee who has worked fewer than 90 consecutive days
14immediately preceding the reporting period; however, such
15credits may accrue during that 90-day period and be claimed
16against payments under this Section for future reporting
17periods after the employee has worked for the employer at
18least 90 consecutive days. In no event may the credit exceed
19the employer's liability for the reporting period. Each
20employer who deducts and withholds or is required to deduct
21and withhold tax under this Act and who retains income tax
22withholdings under this subsection must make a return with
23respect to such taxes and retained amounts in the form and
24manner that the Department, by rule, requires and pay to the
25Department or to a depositary designated by the Department
26those withheld taxes not retained by the employer.

 

 

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1    For each reporting period, the employer may not claim a
2credit or credits for more employees than the number of
3employees making less than the minimum or reduced wage for the
4current calendar year during the last reporting period of the
5preceding calendar year. Notwithstanding any other provision
6of this subsection, an employer shall not be eligible for
7credits for a reporting period unless the average wage paid by
8the employer per employee for all employees making less than
9$55,000 during the reporting period is greater than the
10average wage paid by the employer per employee for all
11employees making less than $55,000 during the same reporting
12period of the prior calendar year.
13    For purposes of this subsection (i):
14    "Compensation paid in Illinois" has the meaning ascribed
15to that term under Section 304(a)(2)(B) of this Act.
16    "Employer" and "employee" have the meaning ascribed to
17those terms in the Minimum Wage Law, except that "employee"
18also includes employees who work for an employer with fewer
19than 4 employees. Employers that operate more than one
20establishment pursuant to a franchise agreement or that
21constitute members of a unitary business group shall aggregate
22their employees for purposes of determining eligibility for
23the credit.
24    "Full-time equivalent employees" means the ratio of the
25number of paid hours during the reporting period and the
26number of working hours in that period.

 

 

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1    "Maximum credit" means the percentage listed below of the
2difference between the amount of compensation paid in Illinois
3to employees who are paid not more than the required minimum
4wage reduced by the amount of compensation paid in Illinois to
5employees who were paid less than the current required minimum
6wage during the reporting period prior to each increase in the
7required minimum wage on January 1. If an employer pays an
8employee more than the required minimum wage and that employee
9previously earned less than the required minimum wage, the
10employer may include the portion that does not exceed the
11required minimum wage as compensation paid in Illinois to
12employees who are paid not more than the required minimum
13wage.
14        (1) 25% for reporting periods beginning on or after
15    January 1, 2020 and ending on or before December 31, 2020;
16        (2) 21% for reporting periods beginning on or after
17    January 1, 2021 and ending on or before December 31, 2021;
18        (3) 17% for reporting periods beginning on or after
19    January 1, 2022 and ending on or before December 31, 2022;
20        (4) 13% for reporting periods beginning on or after
21    January 1, 2023 and ending on or before December 31, 2023;
22        (5) 9% for reporting periods beginning on or after
23    January 1, 2024 and ending on or before December 31, 2024;
24        (6) 5% for reporting periods beginning on or after
25    January 1, 2025 and ending on or before December 31, 2025.
26    The amount computed under this subsection may continue to

 

 

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1be claimed for reporting periods beginning on or after January
21, 2026 and:
3        (A) ending on or before December 31, 2026 for
4    employers with more than 5 employees; or
5        (B) ending on or before December 31, 2027 for
6    employers with no more than 5 employees.
7    "Qualified employee" means an employee who is paid not
8more than the required minimum wage and has an average wage
9paid per hour by the employer during the reporting period
10equal to or greater than his or her average wage paid per hour
11by the employer during each reporting period for the
12immediately preceding 12 months. A new qualified employee is
13deemed to have earned the required minimum wage in the
14preceding reporting period.
15    "Reporting period" means the quarter for which a return is
16required to be filed under subsection (b) of this Section.
17    (j) For reporting periods beginning on or after January 1,
182023, if a private employer grants all of its employees the
19option of taking a paid leave of absence of at least 30 days
20for the purpose of serving as an organ donor or bone marrow
21donor, then the private employer may take a credit against the
22payments due under this Section in an amount equal to the
23amount withheld under this Section with respect to wages paid
24while the employee is on organ donation leave, not to exceed
25$1,000 in withholdings for each employee who takes organ
26donation leave. To be eligible for the credit, such a leave of

 

 

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1absence must be taken without loss of pay, vacation time,
2compensatory time, personal days, or sick time for at least
3the first 30 days of the leave of absence. The private employer
4shall adopt rules governing organ donation leave, including
5rules that (i) establish conditions and procedures for
6requesting and approving leave and (ii) require medical
7documentation of the proposed organ or bone marrow donation
8before leave is approved by the private employer. A private
9employer must provide, in the manner required by the
10Department, documentation from the employee's medical
11provider, which the private employer receives from the
12employee, that verifies the employee's organ donation. The
13private employer must also provide, in the manner required by
14the Department, documentation that shows that a qualifying
15organ donor leave policy was in place and offered to all
16qualifying employees at the time the leave was taken. For the
17private employer to receive the tax credit, the employee
18taking organ donor leave must allow for the applicable medical
19records to be disclosed to the Department. If the private
20employer cannot provide the required documentation to the
21Department, then the private employer is ineligible for the
22credit under this Section. A private employer must also
23provide, in the form required by the Department, any
24additional documentation or information required by the
25Department to administer the credit under this Section. The
26credit under this subsection (j) shall be taken within one

 

 

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1year after the date upon which the organ donation leave
2begins. If the leave taken spans into a second tax year, the
3employer qualifies for the allowable credit in the later of
4the 2 years. If the amount of credit exceeds the tax liability
5for the year, the excess may be carried and applied to the tax
6liability for the 3 taxable years following the excess credit
7year. The tax credit shall be applied to the earliest year for
8which there is a tax liability. If there are credits for more
9than one year that are available to offset liability, the
10earlier credit shall be applied first.
11    Nothing in this subsection (j) prohibits a private
12employer from providing an unpaid leave of absence to its
13employees for the purpose of serving as an organ donor or bone
14marrow donor; however, if the employer's policy provides for
15fewer than 30 days of paid leave for organ or bone marrow
16donation, then the employer shall not be eligible for the
17credit under this Section.
18    As used in this subsection (j):
19    "Organ" means any biological tissue of the human body that
20may be donated by a living donor, including, but not limited
21to, the kidney, liver, lung, pancreas, intestine, bone, skin,
22or any subpart of those organs.
23    "Organ donor" means a person from whose body an organ is
24taken to be transferred to the body of another person.
25    "Private employer" means a sole proprietorship,
26corporation, partnership, limited liability company, or other

 

 

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1entity with one or more employees. "Private employer" does not
2include a municipality, county, State agency, or other public
3employer.
4    This subsection (j) is exempt from the provisions of
5Section 250 of this Act.
6    (k) A
taxpayer who is issued a certificate under the Local
7Journalism Sustainability Act for a taxable year shall be
8allowed a credit against payments due under this Section as
9provided in that Act.
10(Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21;
11102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700,
12Article 110, Section 110-905, eff. 4-19-22; 102-1125, eff.
132-3-23.)
 
14    Section 999. Effective date. This Act takes effect upon
15becoming law.