97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB6196

 

Introduced , by Rep. Sandy Cole

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/217
35 ILCS 5/217.1 new

    Amends the Illinois Income Tax Act. Creates a credit in the amount equal to 20%, but in no event to exceed $5,000, of the gross wages paid by the taxpayer to a qualified veteran in the course of that veteran's sustained employment during each taxable year ending on or after the date of hire by the taxpayer if that veteran was unemployed for an aggregate period of 4 weeks or more during the 6-week period ending on the Saturday immediately preceding the date he or she was hired by the taxpayer. Provides that a taxpayer is not eligible for the credit if the taxpayer claimed an existing credit for wages paid to the same qualified veteran for that taxable year. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB6196LRB097 21895 HLH 70593 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
5changing Section 217 and by adding Section 217.1 as follows:
 
6    (35 ILCS 5/217)
7    Sec. 217. Credit for wages paid to qualified veterans.
8    (a) For each taxable year beginning on or after January 1,
92007 and ending on or before December 30, 2010, each taxpayer
10is entitled to a credit against the tax imposed by subsections
11(a) and (b) of Section 201 of this Act in an amount equal to 5%,
12but in no event to exceed $600, of the gross wages paid by the
13taxpayer to a qualified veteran in the course of that veteran's
14sustained employment during the taxable year. For each taxable
15year beginning on or after January 1, 2010, each taxpayer is
16entitled to a credit against the tax imposed by subsections (a)
17and (b) of Section 201 of this Act in an amount equal to 10%,
18but in no event to exceed $1,200, of the gross wages paid by
19the taxpayer to a qualified veteran in the course of that
20veteran's sustained employment during the taxable year. For
21partners, shareholders of Subchapter S corporations, and
22owners of limited liability companies, if the liability company
23is treated as a partnership for purposes of federal and State

 

 

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1income taxation, there shall be allowed a credit under this
2Section to be determined in accordance with the determination
3of income and distributive share of income under Sections 702
4and 704 and Subchapter S of the Internal Revenue Code.
5    (b) For purposes of this Section:
6    "Qualified veteran" means an Illinois resident who: (i) was
7a member of the Armed Forces of the United States, a member of
8the Illinois National Guard, or a member of any reserve
9component of the Armed Forces of the United States; (ii) served
10on active duty in connection with Operation Desert Storm,
11Operation Enduring Freedom, or Operation Iraqi Freedom; (iii)
12has provided, to the taxpayer, documentation showing that he or
13she was honorably discharged; and (iv) was initially hired by
14the taxpayer on or after January 1, 2007.
15    "Sustained employment" means a period of employment that is
16not less than 185 days during the taxable year.
17    (c) In no event shall a credit under this Section reduce
18the taxpayer's liability to less than zero. If the amount of
19the credit exceeds the tax liability for the year, the excess
20may be carried forward and applied to the tax liability of the
215 taxable years following the excess credit year. The tax
22credit shall be applied to the earliest year for which there is
23a tax liability. If there are credits for more than one year
24that are available to offset a liability, the earlier credit
25shall be applied first.
26    (d) A taxpayer who claims a credit under this Section for a

 

 

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1taxable year with respect to a veteran shall not be allowed a
2credit under Section 217.1 of this Act with respect to the same
3veteran for that taxable year.
4(Source: P.A. 96-101, eff. 1-1-10.)
 
5    (35 ILCS 5/217.1 new)
6    Sec. 217.1. Credit for wages paid to qualified unemployed
7veterans.
8    (a) For each taxable year ending on or after December 31,
92012 and on or before December 31, 2016, each taxpayer is
10entitled to a credit against the tax imposed by subsections (a)
11and (b) of Section 201 of this Act in the amount equal to 20%,
12but in no event to exceed $5,000, of the gross wages paid by
13the taxpayer to a qualified veteran in the course of that
14veteran's sustained employment during each taxable year ending
15on or after the date of hire by the taxpayer if that veteran
16was unemployed for an aggregate period of 4 weeks or more
17during the 6-week period ending on the Saturday immediately
18preceding the date he or she was hired by the taxpayer. For
19partners, shareholders of Subchapter S corporations, and
20owners of limited liability companies, if the liability company
21is treated as a partnership for the purposes of federal and
22State income taxation, there shall be allowed a credit under
23this Section to be determined in accordance with the
24determination of income and distributive share of income under
25Sections 702 and 704 and Subchapter S of the Internal Revenue

 

 

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1Code.
2    (b) For the purposes of this Section:
3    "Qualified veteran" means an Illinois resident who: (i) was
4a member of the Armed Forces of the United States, a member of
5the Illinois National Guard, or a member of any reserve
6component of the Armed Forces of the United States; (ii) served
7on active duty on or after September 11, 2001; (iii) has
8provided, to the taxpayer, documentation showing that he or she
9was honorably discharged; and (iv) was initially hired by the
10taxpayer on or after June 1, 2012.
11    "Sustained employment" means (i) a period of employment
12that is not less than 185 days following the date of hire or
13(ii) in the case of a veteran who was unemployed for an
14aggregate period of 6 months or more during the one-year period
15ending on the date the veteran was hired by the taxpayer, a
16period of employment that is more than 30 days following the
17date of hire. The period of sustained employment may be
18completed after the end of the taxable year in which the
19veteran is hired.
20    A veteran is "unemployed" for a week if he or she (i) has
21received unemployment benefits (as defined in Section 202 of
22the Unemployment Insurance Act, including but not limited to
23federally funded unemployment benefits) for the week, or (ii)
24has not been employed since being honorably discharged.
25    (c) In no event shall a credit under this Section reduce a
26taxpayer's liability to less than zero. If the amount of credit

 

 

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1exceeds the tax liability for the year, the excess may be
2carried forward and applied to the tax liability for the 5
3taxable years following the excess credit year. The tax credit
4shall be applied to the earliest year for which there is a tax
5liability. If there are credits for more than one year that are
6available to offset liability, the earlier credit shall be
7applied first.
8    (d) A taxpayer who claims a credit under this Section for a
9taxable year with respect to a veteran shall not be allowed a
10credit under Section 217 of this Act with respect to the same
11veteran for that taxable year.
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.