Illinois General Assembly - Full Text of HB1526
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Full Text of HB1526  96th General Assembly

HB1526sam003 96TH GENERAL ASSEMBLY

Sen. Louis S. Viverito

Filed: 10/30/2009

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 1526

2     AMENDMENT NO. ______. Amend House Bill 1526 by replacing
3 everything after the enacting clause with the following:
 
4     "Section 5. The Illinois Income Tax Act is amended by
5 changing Section 704A as follows:
 
6     (35 ILCS 5/704A)
7     Sec. 704A. Employer's return and payment of tax withheld.
8     (a) In general, every employer who deducts and withholds or
9 is required to deduct and withhold tax under this Act on or
10 after January 1, 2008 shall make those payments and returns as
11 provided in this Section.
12     (b) Returns. Every employer shall, in the form and manner
13 required by the Department, make returns with respect to taxes
14 withheld or required to be withheld under this Article 7 for
15 each quarter beginning on or after January 1, 2008, on or
16 before the last day of the first month following the close of

 

 

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1 that quarter.
2     (c) Payments. With respect to amounts withheld or required
3 to be withheld on or after January 1, 2008:
4         (1) Semi-weekly payments. For each calendar year, each
5     employer who withheld or was required to withhold more than
6     $12,000 during the one-year period ending on June 30 of the
7     immediately preceding calendar year, payment must be made:
8             (A) on or before each Friday of the calendar year,
9         for taxes withheld or required to be withheld on the
10         immediately preceding Saturday, Sunday, Monday, or
11         Tuesday;
12             (B) on or before each Wednesday of the calendar
13         year, for taxes withheld or required to be withheld on
14         the immediately preceding Wednesday, Thursday, or
15         Friday.
16         (2) Semi-weekly payments. Any employer who withholds
17     or is required to withhold more than $12,000 in any quarter
18     of a calendar year is required to make payments on the
19     dates set forth under item (1) of this subsection (c) for
20     each remaining quarter of that calendar year and for the
21     subsequent calendar year.
22         (3) Monthly payments. Each employer, other than an
23     employer described in items (1) or (2) of this subsection,
24     shall pay to the Department, on or before the 15th day of
25     each month the taxes withheld or required to be withheld
26     during the immediately preceding month.

 

 

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

 

 

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1     (e) Annual return and payment. Every employer who deducts
2 and withholds or is required to deduct and withhold tax from a
3 person engaged in domestic service employment, as that term is
4 defined in Section 3510 of the Internal Revenue Code, may
5 comply with the requirements of this Section with respect to
6 such employees by filing an annual return and paying the taxes
7 required to be deducted and withheld on or before the 15th day
8 of the fourth month following the close of the employer's
9 taxable year. The Department may allow the employer's return to
10 be submitted with the employer's individual income tax return
11 or to be submitted with a return due from the employer under
12 Section 1400.2 of the Unemployment Insurance Act.
13     (f) Magnetic media and electronic filing. Any W-2 Form
14 that, under the Internal Revenue Code and regulations
15 promulgated thereunder, is required to be submitted to the
16 Internal Revenue Service on magnetic media or electronically
17 must also be submitted to the Department on magnetic media or
18 electronically for Illinois purposes, if required by the
19 Department.
20     (g) For amounts deducted or withheld after December 31,
21 2009, a taxpayer who makes an election under Section 5-15(f) of
22 the Economic Development for a Growing Economy Act for a
23 taxable year shall be allowed a credit against payments due
24 under this Section for amounts withheld during the first
25 calendar year beginning after the end of that taxable year
26 equal to the amount of the credit awarded to the taxpayer by

 

 

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1 the Department of Commerce and Economic Opportunity under the
2 Economic Development for a Growing Economy Act for the taxable
3 year. The credit may not reduce the taxpayer's obligation for
4 any payment due under this Section to less than zero. If the
5 amount of the credit exceeds the total payments due under this
6 Section with respect to amounts withheld during the calendar
7 year, the excess may be carried forward and applied against the
8 taxpayer's liability under this Section in the 5 succeeding
9 calendar years. The credit shall be applied to the earliest
10 year for which there is a tax liability. If there are credits
11 from more than one taxable year that are available to offset a
12 liability, the earlier credit shall be applied first. This
13 Section is exempt from the provisions of Section 250 of this
14 Act.
15 (Source: P.A. 95-8, eff. 6-29-07; 95-707, eff. 1-11-08.)
 
16     Section 10. The Economic Development for a Growing Economy
17 Tax Credit Act is amended by changing Section 5-15 as follows:
 
18     (35 ILCS 10/5-15)
19     Sec. 5-15. Tax Credit Awards. Subject to the conditions set
20 forth in this Act, a Taxpayer is entitled to a Credit against
21 taxes imposed pursuant to subsections (a) and (b) of Section
22 201 of the Illinois Income Tax Act that may be imposed on the
23 Taxpayer for a taxable year beginning on or after January 1,
24 1999, if the Taxpayer is awarded a Credit by the Department

 

 

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1 under this Act for that taxable year.
2     (a) The Department shall make Credit awards under this Act
3 to foster job creation and retention in Illinois.
4     (b) A person that proposes a project to create new jobs in
5 Illinois must enter into an Agreement with the Department for
6 the Credit under this Act.
7     (c) The Credit shall be claimed for the taxable years
8 specified in the Agreement.
9     (d) The Credit shall not exceed the Incremental Income Tax
10 attributable to the project that is the subject of the
11 Agreement.
12     (e) Nothing herein shall prohibit a Tax Credit Award to an
13 Applicant that uses a PEO if all other award criteria are
14 satisfied.
15     (f) In lieu of the Credit allowed under this Act against
16 the taxes imposed pursuant to subsections (a) and (b) of
17 Section 201 of the Illinois Income Tax Act for any taxable year
18 ending on or after December 31, 2009, the Taxpayer may elect to
19 claim the Credit against its obligation to pay over withholding
20 under Section 704A of the Illinois Income Tax Act.
21         (1) The election under this subsection (f) may be made
22     only by a Taxpayer that (i) is primarily engaged in one of
23     the following business activities: motor vehicle metal
24     stamping, automobile manufacturing, automobile and light
25     duty motor vehicle manufacturing, motor vehicle
26     manufacturing, light truck and utility vehicle

 

 

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1     manufacturing, or motor vehicle body manufacturing and
2     (ii) meets the following criteria:
3             (A) the Taxpayer (i) had an Illinois net loss or an
4         Illinois net loss deduction under Section 207 of the
5         Illinois Income Tax Act for the taxable year in which
6         the Credit is awarded, (ii) employed a minimum of 1,000
7         full-time employees in this State during the taxable
8         year in which the Credit is awarded, (iii) has an
9         Agreement under this Act on the effective date of this
10         amendatory Act of the 96th General Assembly, and (iv)
11         is in compliance with all provisions of that Agreement;
12         or
13             (B) the Taxpayer (i) had an Illinois net loss or an
14         Illinois net loss deduction under Section 207 of the
15         Illinois Income Tax Act for the taxable year in which
16         the Credit is awarded, (ii) employed a minimum of 1,000
17         full-time employees in this State during the taxable
18         year in which the Credit is awarded, and (iii) has
19         applied for an Agreement within 180 days after the
20         effective date of this amendatory Act of the 96th
21         General Assembly.
22         (2) An election under this subsection shall allow the
23     credit to be taken against payments otherwise due under
24     Section 704A of the Illinois Income Tax Act during the
25     first calendar year beginning after the end of the taxable
26     year in which the credit is awarded under this Act.

 

 

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1         (3) The election shall be made in the form and manner
2     required by the Illinois Department of Revenue and, once
3     made, shall be irrevocable.
4         (4) If a Taxpayer who meets the requirements of
5     subparagraph (A) of paragraph (1) of this subsection (f)
6     elects to claim the Credit against its withholdings as
7     provided in this subsection (f), then, on and after the
8     date of the election, the terms of the Agreement between
9     the Taxpayer and the Department may not be further amended
10     during the term of the Agreement.
11 (Source: P.A. 95-375, eff. 8-23-07.)
 
12     Section 99. Effective date. This Act takes effect upon
13 becoming law.".