Full Text of SB2173 102nd General Assembly
SB2173 102ND GENERAL ASSEMBLY |
| | 102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022 SB2173 Introduced 2/26/2021, by Sen. Neil Anderson SYNOPSIS AS INTRODUCED: | | |
Amends the Illinois Income Tax Act. Provides that an apprentice who is hired by the taxpayer through the United States Department of Defense SkillBridge internship program is considered a qualifying apprentice for the purpose of the apprenticeship education expense credit. Provides that, in the case of an employee participating in the SkillBridge program, the credit shall be equal to $3,500 per qualifying apprentice. Effective immediately. |
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by | 5 | | changing and renumbering Section 229, as added by Public Act | 6 | | 101-207, as follows: | 7 | | (35 ILCS 5/231) | 8 | | Sec. 231 229 . Apprenticeship education expense credit. | 9 | | (a) As used in this Section: | 10 | | "Department" means the Department of Commerce and Economic | 11 | | Opportunity. | 12 | | "Employer" means an Illinois taxpayer who is the employer | 13 | | of the qualifying apprentice. | 14 | | "Qualifying apprentice" means an individual who: (i) is a | 15 | | resident of the State of Illinois; (ii) is at least 16 years | 16 | | old at the close of the school year for which a credit is | 17 | | sought; (iii) during the school year for which a credit is | 18 | | sought, was a full-time apprentice enrolled in an | 19 | | apprenticeship program which is registered with the United | 20 | | States Department of Labor, Office of Apprenticeship; and (iv) | 21 | | is employed in Illinois by the taxpayer who is the employer. | 22 | | "Qualifying apprentice" also means an apprentice who is | 23 | | employed in Illinois by the taxpayer through the United States |
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| 1 | | Department of Defense SkillBridge internship program. | 2 | | "Qualified education expense" means the amount incurred on | 3 | | behalf of a qualifying apprentice not to exceed $3,500 for | 4 | | tuition, book fees, and lab fees at the school or community | 5 | | college in which the apprentice is enrolled during the regular | 6 | | school year. | 7 | | "School" means any public or nonpublic secondary school in | 8 | | Illinois that is: (i) an institution of higher education that | 9 | | provides a program that leads to an industry-recognized | 10 | | postsecondary credential or degree; (ii) an entity that | 11 | | carries out programs registered under the federal National | 12 | | Apprenticeship Act; or (iii) another public or private | 13 | | provider of a program of training services, which may include | 14 | | a joint labor-management organization. | 15 | | (b) For taxable years beginning on or after January 1, | 16 | | 2020, and beginning on or before January 1, 2025, the employer | 17 | | of one or more qualifying apprentices shall be allowed a | 18 | | credit against the tax imposed by subsections (a) and (b) of | 19 | | Section 201 of the Illinois Income Tax Act for qualified | 20 | | education expenses incurred on behalf of a qualifying | 21 | | apprentice. The credit shall be equal to 100% of the qualified | 22 | | education expenses, but in no event may the total credit | 23 | | amount awarded to a single taxpayer in a single taxable year | 24 | | exceed $3,500 per qualifying apprentice. In the case of an | 25 | | employee participating in the SkillBridge program, the credit | 26 | | shall be equal to $3,500 per qualifying apprentice. A taxpayer |
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| 1 | | shall be entitled to an additional $1,500 credit against the | 2 | | tax imposed by subsections (a) and (b) of Section 201 of the | 3 | | Illinois Income Tax Act if (i) the qualifying apprentice | 4 | | resides in an underserved area as defined in Section 5-5 of the | 5 | | Economic Development for a Growing Economy Tax Credit Act | 6 | | during the school year for which a credit is sought by an | 7 | | employer or (ii) the employer's principal place of business is | 8 | | located in an underserved area, as defined in Section 5-5 of | 9 | | the Economic Development for a Growing Economy Tax Credit Act. | 10 | | In no event shall a credit under this Section reduce the | 11 | | taxpayer's liability under this Act to less than zero.
For | 12 | | partners, shareholders of Subchapter S corporations, and | 13 | | owners of limited liability companies, if the liability | 14 | | company is treated as a partnership for purposes of federal | 15 | | and State income taxation, there shall be allowed a credit | 16 | | under this Section to be determined in accordance with the | 17 | | determination of income and distributive share of income under | 18 | | Sections 702 and 704 and Subchapter S of the Internal Revenue | 19 | | Code. | 20 | | (c) The Department shall implement a program to certify | 21 | | applicants for an apprenticeship credit under this Section. | 22 | | Upon satisfactory review, the Department shall issue a tax | 23 | | credit certificate to an employer incurring costs on behalf of | 24 | | a qualifying apprentice stating the amount of the tax credit | 25 | | to which the employer is entitled. If the employer is seeking a | 26 | | tax credit for multiple qualifying apprentices, the Department |
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| 1 | | may issue a single tax credit certificate that encompasses the | 2 | | aggregate total of tax credits for qualifying apprentices for | 3 | | a single employer. | 4 | | (d) The Department, in addition to those powers granted | 5 | | under the Civil Administrative Code of Illinois, is granted | 6 | | and shall have all the powers necessary or convenient to carry | 7 | | out and effectuate the purposes and provisions of this | 8 | | Section, including, but not limited to, power and authority | 9 | | to: | 10 | | (1) Adopt rules deemed necessary and appropriate for | 11 | | the administration of this Section; establish forms for | 12 | | applications, notifications, contracts, or any other | 13 | | agreements; and accept applications at any time during the | 14 | | year and require that all applications be submitted via | 15 | | the Internet. The Department shall require that | 16 | | applications be submitted in electronic form. | 17 | | (2) Provide guidance and assistance to applicants | 18 | | pursuant to the provisions of this Section and cooperate | 19 | | with applicants to promote, foster, and support job | 20 | | creation within the State. | 21 | | (3) Enter into agreements and memoranda of | 22 | | understanding for participation of and engage in | 23 | | cooperation with agencies of the federal government, units | 24 | | of local government, universities, research foundations or | 25 | | institutions, regional economic development corporations, | 26 | | or other organizations for the purposes of this Section. |
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| 1 | | (4) Gather information and conduct inquiries, in the | 2 | | manner and by the methods it deems desirable, including, | 3 | | without limitation, gathering information with respect to | 4 | | applicants for the purpose of making any designations or | 5 | | certifications necessary or desirable or to gather | 6 | | information in furtherance of the purposes of this Act. | 7 | | (5) Establish, negotiate, and effectuate any term, | 8 | | agreement, or other document with any person necessary or | 9 | | appropriate to accomplish the purposes of this Section, | 10 | | and consent, subject to the provisions of any agreement | 11 | | with another party, to the modification or restructuring | 12 | | of any agreement to which the Department is a party. | 13 | | (6) Provide for sufficient personnel to permit | 14 | | administration, staffing, operation, and related support | 15 | | required to adequately discharge its duties and | 16 | | responsibilities described in this Section from funds made | 17 | | available through charges to applicants or from funds as | 18 | | may be appropriated by the General Assembly for the | 19 | | administration of this Section. | 20 | | (7) Require applicants, upon written request, to issue | 21 | | any necessary authorization to the appropriate federal, | 22 | | State, or local authority or any other person for the | 23 | | release to the Department of information requested by the | 24 | | Department, including, but not be limited to, financial | 25 | | reports, returns, or records relating to the applicant or | 26 | | to the amount of credit allowable under this Section. |
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| 1 | | (8) Require that an applicant shall, at all times, | 2 | | keep proper books of record and account in accordance with | 3 | | generally accepted accounting principles consistently | 4 | | applied, with the books, records, or papers related to the | 5 | | agreement in the custody or control of the applicant open | 6 | | for reasonable Department inspection and audits, | 7 | | including, without limitation, the making of copies of the | 8 | | books, records, or papers. | 9 | | (9) Take whatever actions are necessary or appropriate | 10 | | to protect the State's interest in the event of | 11 | | bankruptcy, default, foreclosure, or noncompliance with | 12 | | the terms and conditions of financial assistance or | 13 | | participation required under this Section or any agreement | 14 | | entered into under this Section, including the power to | 15 | | sell, dispose of, lease, or rent, upon terms and | 16 | | conditions determined by the Department to be appropriate, | 17 | | real or personal property that the Department may recover | 18 | | as a result of these actions. | 19 | | (e) The Department, in consultation with the Department of | 20 | | Revenue, shall adopt rules to administer this Section. The | 21 | | aggregate amount of the tax credits that may be claimed under | 22 | | this Section for qualified education expenses incurred by an | 23 | | employer on behalf of a qualifying apprentice shall be limited | 24 | | to $5,000,000 per calendar year. If applications for a greater | 25 | | amount are received, credits shall be allowed on a first-come | 26 | | first-served basis, based on the date on which each properly |
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| 1 | | completed application for a certificate of eligibility is | 2 | | received by the Department. If more than one certificate is | 3 | | received on the same day, the credits will be awarded based on | 4 | | the time of submission for that particular day. | 5 | | (f) An employer may not sell or otherwise transfer a | 6 | | credit awarded under this Section to another person or | 7 | | taxpayer. | 8 | | (g) The employer shall provide the Department such | 9 | | information as the Department may require, including but not | 10 | | limited to: (i) the name, age, and taxpayer identification | 11 | | number of each qualifying apprentice employed by the taxpayer | 12 | | during the taxable year; (ii) the amount of qualified | 13 | | education expenses incurred with respect to each qualifying | 14 | | apprentice; and (iii) the name of the school at which the | 15 | | qualifying apprentice is enrolled and the qualified education | 16 | | expenses are incurred. | 17 | | (h) On or before July 1 of each year, the Department shall | 18 | | report to the Governor and the General Assembly on the tax | 19 | | credit certificates awarded under this Section for the prior | 20 | | calendar year. The report must include: | 21 | | (1) the name of each employer awarded or allocated a | 22 | | credit; | 23 | | (2) the number of qualifying apprentices for whom the | 24 | | employer has incurred qualified education expenses; | 25 | | (3) the North American Industry Classification System | 26 | | (NAICS) code applicable to each employer awarded or |
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| 1 | | allocated a credit; | 2 | | (4) the amount of the credit awarded or allocated to | 3 | | each employer; | 4 | | (5) the total number of employers awarded or allocated | 5 | | a credit; | 6 | | (6) the total number of qualifying apprentices for | 7 | | whom employers receiving credits under this Section | 8 | | incurred qualified education expenses; and | 9 | | (7) the average cost to the employer of all | 10 | | apprenticeships receiving credits under this Section.
| 11 | | (Source: P.A. 101-207, eff. 8-2-19; revised 9-5-19.) | 12 | | Section 99. Effective date. This Act takes effect upon | 13 | | becoming law. |
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