Illinois General Assembly - Full Text of SB2398
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Full Text of SB2398  102nd General Assembly

SB2398 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB2398

 

Introduced 2/26/2021, by Sen. Rachelle Crowe

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/232 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for an Illinois business that increases its average full-time employee head count in the State for the taxable year by more than 20% over its average full-time employee head count in the State for the immediately preceding taxable year. Provides that the amount of the credit is 20% of its tax liability under this Act (other than its withholding tax liability) for the taxable year. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.


LRB102 17268 HLH 22740 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2398LRB102 17268 HLH 22740 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. Credit for increasing employee head count.
8    (a) For taxable years ending on or after December 31,
92021, if an Illinois business increases its average full-time
10employee head count in the State for the taxable year by more
11than 20% over its average full-time employee head count in the
12State for the immediately preceding taxable year, then that
13business is entitled to a credit against the taxes imposed by
14subsections (a) and (b) of Section 201 in an amount equal to
1520% of its tax liability under this Act (other than its
16liability under Article 7 of this Act) for the taxable year.
17    (b) Partners, shareholders of subchapter S corporations,
18and owners of limited liability companies (if the limited
19liability company is treated as a partnership for purposes of
20federal and State income taxation) are entitled to a credit
21under this Section to be determined in accordance with the
22determination of income and distributive share of income under
23Sections 702 and 703 and subchapter S of the Internal Revenue

 

 

SB2398- 2 -LRB102 17268 HLH 22740 b

1Code.
2    (c) As used in this Act, a person is considered a full-time
3employee if the person is employed for consideration for at
4least 35 hours each week or renders any other standard of
5service generally accepted by industry custom or practice as
6full-time employment.
7    (d) This Section is exempt from the provisions of Section
8250.
 
9    Section 99. Effective date. This Act takes effect upon
10becoming law.