Full Text of SB2859 95th General Assembly
SB2859eng 95TH GENERAL ASSEMBLY
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| AN ACT concerning revenue.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Income Tax Act is amended by | 5 |
| changing Section 217 as follows: | 6 |
| (35 ILCS 5/217)
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| Sec. 217. Credit for wages paid to qualified veterans. | 8 |
| (a) Each For each taxable year beginning on or after | 9 |
| January 1, 2007, each taxpayer who, during the taxable year, | 10 |
| paid wages to a qualified veteran is entitled to a credit | 11 |
| against the tax imposed by subsections (a) and (b) of Section | 12 |
| 201 of this Act in the amount set forth under subsection (a-5). | 13 |
| an amount equal to 5%, but in no event to exceed $600, of the | 14 |
| gross wages paid by the taxpayer to a qualified veteran in the | 15 |
| course of that veteran's sustained employment during the | 16 |
| taxable year. For partners, shareholders of Subchapter S | 17 |
| corporations, and owners of limited liability companies, if the | 18 |
| liability company is treated as a partnership for purposes of | 19 |
| federal and State income taxation, there shall be allowed a | 20 |
| credit under this Section to be determined in accordance with | 21 |
| the determination of income and distributive share of income | 22 |
| under Sections 702 and 704 and Subchapter S of the Internal | 23 |
| Revenue Code. |
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| (a-5) For taxable years ending on or after December 31, | 2 |
| 2007 and ending on or before December 30, 2009, the amount of | 3 |
| the credit under this Section is an amount equal to 5% (but in | 4 |
| no event to exceed $600) of the gross wages paid by the | 5 |
| taxpayer to a Southwest-Asia-service veteran in the course of | 6 |
| that veteran's sustained employment during the taxable year. | 7 |
| For taxable years ending on or after December 31, 2009 and | 8 |
| ending on or before December 30, 2014, the amount of the credit | 9 |
| under this Section is: | 10 |
| (1) with respect to wages paid to a | 11 |
| Southwest-Asia-service veteran, an amount equal to 10% | 12 |
| (but in no event to exceed $1,200) of the gross wages paid | 13 |
| by the taxpayer in the course of that veteran's sustained | 14 |
| employment during the taxable year; and | 15 |
| (2) with respect to wages paid to any other qualified | 16 |
| veteran who was initially hired by the taxpayer on or after | 17 |
| January 1, 2009, an amount equal to 7.5% (but in no event | 18 |
| to exceed $800) of the gross wages paid by the taxpayer in | 19 |
| the course of that veteran's sustained employment during | 20 |
| the taxable year. | 21 |
| (b) For purposes of this Section: | 22 |
| "Qualified veteran" means an Illinois resident who : (i) was | 23 |
| a member of the Armed Forces of the United States, a member of | 24 |
| the Illinois National Guard, or a member of any reserve | 25 |
| component of the Armed Forces of the United States and who ; | 26 |
| (ii) served on active duty in connection with Operation Desert |
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| Storm, Operation Enduring Freedom, or Operation Iraqi Freedom; | 2 |
| (iii) has provided, to the taxpayer, documentation showing that | 3 |
| he or she was honorably discharged ; and (iv) was initially | 4 |
| hired by the taxpayer on or after January 1, 2007 . | 5 |
| "Southwest-Asia-service veteran" means a qualified veteran | 6 |
| who served on active duty in connection with Operation Desert | 7 |
| Storm, Operation Enduring Freedom, or Operation Iraqi Freedom | 8 |
| and who was initially hired by the taxpayer on or after January | 9 |
| 1, 2007. | 10 |
| "Sustained employment" means a period of employment that is | 11 |
| not less than 185 days during the taxable year. | 12 |
| (c) In no event shall a credit under this Section reduce | 13 |
| the taxpayer's liability to less than zero. If the amount of | 14 |
| the credit exceeds the tax liability for the year, the excess | 15 |
| may be carried forward and applied to the tax liability of the | 16 |
| 5 taxable years following the excess credit year. The tax | 17 |
| credit shall be applied to the earliest year for which there is | 18 |
| a tax liability. If there are credits for more than one year | 19 |
| that are available to offset a liability, the earlier credit | 20 |
| shall be applied first.
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| (Source: P.A. 94-1067, eff. 8-1-06.)
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