Full Text of SB3165 96th General Assembly
SB3165 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 SB3165
Introduced 2/9/2010, by Sen. Bill Brady SYNOPSIS AS INTRODUCED: |
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35 ILCS 5/219 new |
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35 ILCS 5/704A |
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Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers, other than taxpayers that receive credits under the Economic Development for a Growing Economy Tax Credit Act, in an amount equal to $2,100 for each new employee who is (i) hired by the taxpayer on and after the effective date of the amendatory Act and (ii) employed by the taxpayer for a period of exactly 12 consecutive months at any point during the taxable year. Provides that all or a portion of the credit may be used as a credit against the taxpayer's withholding tax liability. Provides that the credit may be carried forward. Effective immediately.
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A BILL FOR
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SB3165 |
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LRB096 15788 HLH 31028 b |
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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 704A and by adding Section 219 as follows: | 6 |
| (35 ILCS 5/219 new) | 7 |
| Sec. 219. New employee credit. For taxable years ending on | 8 |
| or after December 31, 2010, each taxpayer, other than a | 9 |
| taxpayer that receives credits under the Economic Development | 10 |
| for a Growing Economy Tax Credit Act during the taxable year, | 11 |
| is entitled to a credit against (i) the tax imposed by | 12 |
| subsections (a) and (b) of Section 201 or (ii) the taxpayer's | 13 |
| withholding tax liability under Article 7 of this Act, in an | 14 |
| amount equal to $2,100 for each new employee who is (i) hired | 15 |
| by the taxpayer on and after the effective date of this | 16 |
| amendatory Act of the 96th General Assembly and (ii) employed | 17 |
| by the taxpayer for a period of exactly 12 consecutive months | 18 |
| at any point during the taxable year. If the amount of the | 19 |
| credit awarded exceeds the taxpayer's income tax liability for | 20 |
| that taxable year, then the excess may be carried forward and | 21 |
| applied to the tax liability of the next taxable year until the | 22 |
| entire amount of the credit has been claimed. If there are | 23 |
| credits for more than one taxable year that are available to |
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| offset a liability, the earlier credit shall be applied first. | 2 |
| In addition, the taxpayer may elect to use all or a portion | 3 |
| of the credit awarded under this Section as a credit against | 4 |
| its withholding tax liability under Article 7 of this Act. Such | 5 |
| an election shall be made in the form and manner prescribed by | 6 |
| the Department by rule and, once made, shall be irrevocable. | 7 |
| For the purposes of this Section, "new employee" means a | 8 |
| full-time employee of the taxpayer who is hired to perform a | 9 |
| job that was not previously performed by another employee. The | 10 |
| term "new employee" does not include (i) an employee of the | 11 |
| taxpayer who was
previously employed in Illinois by a related | 12 |
| member of the taxpayer and whose employment was shifted to the | 13 |
| taxpayer during the taxable year or (ii) a child, grandchild, | 14 |
| parent, or spouse,
other than a spouse who is legally separated | 15 |
| from the individual, of any individual who has a direct or an | 16 |
| indirect ownership interest of at least 5% in the profits, | 17 |
| capital, or value of the taxpayer. | 18 |
| For the purposes of this Section, the term "related member" | 19 |
| means: | 20 |
| (1) an individual stockholder, if the stockholder and | 21 |
| the members of the
stockholder's family (as defined in | 22 |
| Section 318 of the Internal Revenue Code)
own directly, | 23 |
| indirectly, beneficially, or constructively, in the | 24 |
| aggregate,
at least 50% of the value of the taxpayer's | 25 |
| outstanding stock; | 26 |
| (2) a partnership, estate, or trust and any partner or |
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| beneficiary,
if the partnership, estate, or trust, and its | 2 |
| partners or beneficiaries own
directly, indirectly, | 3 |
| beneficially, or constructively, in the aggregate, at
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| least 50% of the profits, capital, stock, or value of the
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| taxpayer; | 6 |
| (3) a corporation, and any party related to the | 7 |
| corporation in a manner
that would require an attribution | 8 |
| of stock from the corporation to the
party or from the | 9 |
| party to the corporation under the attribution rules
of | 10 |
| Section 318 of the Internal Revenue Code, if the taxpayer | 11 |
| owns
directly, indirectly, beneficially, or constructively | 12 |
| at least
50% of the value of the corporation's outstanding | 13 |
| stock; | 14 |
| (4) a corporation and any party related to that | 15 |
| corporation in a manner
that would require an attribution | 16 |
| of stock from the corporation to the party or
from the | 17 |
| party to the corporation under the attribution rules of | 18 |
| Section 318 of
the Internal Revenue Code, if the | 19 |
| corporation and all such related parties own
in the | 20 |
| aggregate at least 50% of the profits, capital, stock, or | 21 |
| value of the
taxpayer; or | 22 |
| (5) a person to or from whom there is attribution of | 23 |
| stock ownership
in accordance with Section 1563(e) of the | 24 |
| Internal Revenue Code, except,
for purposes of determining | 25 |
| whether a person is a related member under
this paragraph, | 26 |
| 20% shall be substituted for 5% wherever 5% appears in
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| Section 1563(e) of the Internal Revenue Code. | 2 |
| (35 ILCS 5/704A) | 3 |
| Sec. 704A. Employer's return and payment of tax withheld. | 4 |
| (a) In general, every employer who deducts and withholds or | 5 |
| is required to deduct and withhold tax under this Act on or | 6 |
| after January 1, 2008 shall make those payments and returns as | 7 |
| provided in this Section. | 8 |
| (b) Returns. Every employer shall, in the form and manner | 9 |
| required by the Department, make returns with respect to taxes | 10 |
| withheld or required to be withheld under this Article 7 for | 11 |
| each quarter beginning on or after January 1, 2008, on or | 12 |
| before the last day of the first month following the close of | 13 |
| that quarter. | 14 |
| (c) Payments. With respect to amounts withheld or required | 15 |
| to be withheld on or after January 1, 2008: | 16 |
| (1) Semi-weekly payments. For each calendar year, each | 17 |
| employer who withheld or was required to withhold more than | 18 |
| $12,000 during the one-year period ending on June 30 of the | 19 |
| immediately preceding calendar year, payment must be made: | 20 |
| (A) on or before each Friday of the calendar year, | 21 |
| for taxes withheld or required to be withheld on the | 22 |
| immediately preceding Saturday, Sunday, Monday, or | 23 |
| Tuesday; | 24 |
| (B) on or before each Wednesday of the calendar | 25 |
| year, for taxes withheld or required to be withheld on |
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| the immediately preceding Wednesday, Thursday, or | 2 |
| Friday. | 3 |
| (2) Semi-weekly payments. Any employer who withholds | 4 |
| or is required to withhold more than $12,000 in any quarter | 5 |
| of a calendar year is required to make payments on the | 6 |
| dates set forth under item (1) of this subsection (c) for | 7 |
| each remaining quarter of that calendar year and for the | 8 |
| subsequent calendar year.
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| (3) Monthly payments. Each employer, other than an | 10 |
| employer described in items (1) or (2) of this subsection, | 11 |
| shall pay to the Department, on or before the 15th day of | 12 |
| each month the taxes withheld or required to be withheld | 13 |
| during the immediately preceding month. | 14 |
| (4) Payments with returns. Each employer shall pay to | 15 |
| the Department, on or before the due date for each return | 16 |
| required to be filed under this Section, any tax withheld | 17 |
| or required to be withheld during the period for which the | 18 |
| return is due and not previously paid to the Department. | 19 |
| (d) Regulatory authority. The Department may, by rule: | 20 |
| (1) If the aggregate amounts required to be withheld | 21 |
| under this Article 7 do not exceed $1,000 for the calendar | 22 |
| year, permit employers, in lieu of the requirements of | 23 |
| subsections (b) and (c), to file annual returns due on or | 24 |
| before January 31 of the following year for taxes withheld | 25 |
| or required to be withheld during that calendar year and to | 26 |
| pay the taxes required to be shown on each such return no |
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| later than the due date for such return. | 2 |
| (2) Provide that any payment required to be made under | 3 |
| subsection (c)(1) or (c)(2) is deemed to be timely to the | 4 |
| extent paid by electronic funds transfer on or before the | 5 |
| due date for deposit of federal income taxes withheld from, | 6 |
| or federal employment taxes due with respect to, the wages | 7 |
| from which the Illinois taxes were withheld. | 8 |
| (3) Designate one or more depositories to which payment | 9 |
| of taxes required to be withheld under this Article 7 must | 10 |
| be paid by some or all employers. | 11 |
| (4) Increase the threshold dollar amounts at which | 12 |
| employers are required to make semi-weekly payments under | 13 |
| subsection (c)(1) or (c)(2). | 14 |
| (e) Annual return and payment. Every employer who deducts | 15 |
| and withholds or is required to deduct and withhold tax from a | 16 |
| person engaged in domestic service employment, as that term is | 17 |
| defined in Section 3510 of the Internal Revenue Code, may | 18 |
| comply with the requirements of this Section with respect to | 19 |
| such employees by filing an annual return and paying the taxes | 20 |
| required to be deducted and withheld on or before the 15th day | 21 |
| of the fourth month following the close of the employer's | 22 |
| taxable year. The Department may allow the employer's return to | 23 |
| be submitted with the employer's individual income tax return | 24 |
| or to be submitted with a return due from the employer under | 25 |
| Section 1400.2 of the Unemployment Insurance Act. | 26 |
| (f) Magnetic media and electronic filing. Any W-2 Form |
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| that, under the Internal Revenue Code and regulations | 2 |
| promulgated thereunder, is required to be submitted to the | 3 |
| Internal Revenue Service on magnetic media or electronically | 4 |
| must also be submitted to the Department on magnetic media or | 5 |
| electronically for Illinois purposes, if required by the | 6 |
| Department. | 7 |
| (g) For amounts deducted or withheld after December 31, | 8 |
| 2009, a taxpayer who makes an election under Section 5-15(f) of | 9 |
| the Economic Development for a Growing Economy Act for a | 10 |
| taxable year shall be allowed a credit against payments due | 11 |
| under this Section for amounts withheld during the first | 12 |
| calendar year beginning after the end of that taxable year | 13 |
| equal to the amount of the credit awarded to the taxpayer by | 14 |
| the Department of Commerce and Economic Opportunity under the | 15 |
| Economic Development for a Growing Economy Act for the taxable | 16 |
| year. The credit may not reduce the taxpayer's obligation for | 17 |
| any payment due under this Section to less than zero. If the | 18 |
| amount of the credit exceeds the total payments due under this | 19 |
| Section with respect to amounts withheld during the calendar | 20 |
| year, the excess may be carried forward and applied against the | 21 |
| taxpayer's liability under this Section in the 5 succeeding | 22 |
| calendar years. The credit shall be applied to the earliest | 23 |
| year for which there is a tax liability. If there are credits | 24 |
| from more than one taxable year that are available to offset a | 25 |
| liability, the earlier credit shall be applied first. This | 26 |
| Section is exempt from the provisions of Section 250 of this |
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| Act. | 2 |
| (h) A taxpayer may elect to claim all or a part of the | 3 |
| credit awarded under Section 219 of this Act as a credit | 4 |
| against payments due under this Section. Such an election shall | 5 |
| be made in the form and manner prescribed by the Department by | 6 |
| rule. If, in any payment period, the amount of the credit that | 7 |
| is eligible to be applied toward the taxpayer's withholding tax | 8 |
| liability exceeds the amount required to be withheld by the | 9 |
| taxpayer for that payment period, then the excess may carried | 10 |
| forward to the next payment period until the entire amount has | 11 |
| been applied . If there are credits from more than one payment | 12 |
| period that are available to offset a liability, the earlier | 13 |
| credit shall be applied first. | 14 |
| (Source: P.A. 95-8, eff. 6-29-07; 95-707, eff. 1-11-08; 96-834, | 15 |
| eff. 12-14-09.)
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| Section 99. Effective date. This Act takes effect upon | 17 |
| becoming law.
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