Illinois General Assembly - Full Text of SB1659
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Full Text of SB1659  98th General Assembly




SB1659 EnrolledLRB098 10416 HLH 40621 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Income Tax Act is amended by
5changing Section 216 as follows:
6    (35 ILCS 5/216)
7    Sec. 216. Credit for wages paid to ex-felons.
8    (a) For each taxable year beginning on or after January 1,
92007, each taxpayer is entitled to a credit against the tax
10imposed by subsections (a) and (b) of Section 201 of this Act
11in an amount equal to 5% of qualified wages paid by the
12taxpayer during the taxable year to one or more Illinois
13residents who are qualified ex-offenders. The total credit
14allowed to a taxpayer with respect to each qualified
15ex-offender may not exceed $1,500 $600 for all taxable years.
16For partners, shareholders of Subchapter S corporations, and
17owners of limited liability companies, if the liability company
18is treated as a partnership for purposes of federal and State
19income taxation, there shall be allowed a credit under this
20Section to be determined in accordance with the determination
21of income and distributive share of income under Sections 702
22and 704 and Subchapter S of the Internal Revenue Code.
23    (b) For purposes of this Section, "qualified wages":



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1        (1) includes only wages that are subject to federal
2    unemployment tax under Section 3306 of the Internal Revenue
3    Code, without regard to any dollar limitation contained in
4    that Section;
5        (2) does not include any amounts paid or incurred by an
6    employer for any period to any qualified ex-offender for
7    whom the employer receives federally funded payments for
8    on-the-job training of that qualified ex-offender for that
9    period; and
10        (3) includes only wages attributable to service
11    rendered during the one-year period beginning with the day
12    the qualified ex-offender begins work for the employer.
13    If the taxpayer has received any payment from a program
14established under Section 482(e)(1) of the federal Social
15Security Act with respect to a qualified ex-offender, then, for
16purposes of calculating the credit under this Section, the
17amount of the qualified wages paid to that qualified
18ex-offender must be reduced by the amount of the payment.
19    (c) For purposes of this Section, "qualified ex-offender"
20means any person who:
21        (1) has been convicted of a crime in this State or of
22    an offense in any other jurisdiction, not including any
23    offense or attempted offense that would subject a person to
24    registration under the Sex Offender Registration Act is an
25    eligible offender, as defined under Section 5-5.5-5 of the
26    Unified Code of Corrections;



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1        (2) was sentenced to a period of incarceration in an
2    Illinois adult correctional center; and
3        (3) was hired by the taxpayer within 3 years one year
4    after being released from an Illinois adult correctional
5    center.
6    (d) In no event shall a credit under this Section reduce
7the taxpayer's liability to less than zero. If the amount of
8the credit exceeds the tax liability for the year, the excess
9may be carried forward and applied to the tax liability of the
105 taxable years following the excess credit year. The tax
11credit shall be applied to the earliest year for which there is
12a tax liability. If there are credits for more than one year
13that are available to offset a liability, the earlier credit
14shall be applied first.
15    (e) This Section is exempt from the provisions of Section
17(Source: P.A. 94-1067, eff. 8-1-06.)
18    Section 99. Effective date. This Act takes effect upon
19becoming law.