HB5845 96TH GENERAL ASSEMBLY

LRB096 19638 HLH 35034 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB5845

Introduced 2/10/2010, by Rep. Eddie Lee Jackson, Sr.

SYNOPSIS AS INTRODUCED:

35 ILCS 5/219 new

Amends the Illinois Income Tax Act. Creates an income tax credit pilot program for taxable years ending on or after December 31, 2010 and on or before December 31, 2011, granting an income tax credit to employers in an amount equal to 10% of the wages paid by the employer during the taxable year to employees (i) who are newly hired by the employer during the taxable year to work at a location in East St. Louis, Illinois and (ii) who are not younger than 18 years of age and not older than 40 years of age during the taxable year. Requires a report so that the General Assembly may consider whether to extend the credit for further tax years and to other or all areas of the State. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 219 as follows:

(35 ILCS 5/219 new)

Sec. 219. Wage credit; East St. Louis pilot program. The General Assembly finds and declares that the City of East St. Louis is an economically disadvantaged area that could benefit greatly from increased job creation and retention. For taxable years ending on or after December 31, 2010 and on or before December 31, 2011, each employer is entitled to a credit against the tax imposed under subsections (a) and (b) of Section 201 of this Act in an amount equal to 10% of the wages paid during the taxable year to employees (i) who are newly hired by the employer during the taxable year to work at a location in East St. Louis and (ii) who are not younger than 18 years of age and not older than 40 years of age during the taxable year. The Mayor of the City of East St. Louis, in consultation with the City Council of East St. Louis, and the Department of Revenue shall each report to the General Assembly no later than April 1, 2011 on the effectiveness of this pilot program credit in creating and retaining jobs in East St. Louis so that the General Assembly may consider whether to extend the credit for further tax years and to other or all areas of the State.

Section 99. Effective date. This Act takes effect upon becoming law.