HB1962 102ND GENERAL ASSEMBLY

LRB102 14230 HLH 19582 b

102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB1962

Introduced 2/17/2021, by Rep. Jeff Keicher

SYNOPSIS AS INTRODUCED:

20 ILCS 605/605-470 new
35 ILCS 5/232 new

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Creates the Office of the Apprenticeship Coordinator within the Department of Commerce and Economic Opportunity to implement programs and strategies related to apprenticeships and to provide assistance to individuals and groups in the State that have interest in or are qualified to be placed in an apprenticeship program. Amends the Illinois Income Tax Act to create a credit for qualified apprentices.

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 Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois is amended by adding Section 605-470 as follows:

(20 ILCS 605/605-470 new)

Sec. 605-470. Office of the Apprenticeship Coordinator.

(a) The Department shall provide for, staff, and establish an Office of the Apprenticeship Coordinator ("the Office"). The Office shall do the following:

(1) Develop and implement programs and strategies that help individuals learn about, receive technical assistance in, and be placed in qualified apprenticeship programs across the State of Illinois. In addition to making use of Department resources, the Office of the Apprenticeship Coordinator shall have the ability to cooperate with all State agencies and institutions of higher education in order to carry out its functions in an effective manner, including support with necessary information, materials, and other forms of assistance. Each State agency and institution of higher education cooperating with the Office shall designate an individual to serve as liaison to the Office to provide information and materials and to respond to requests for assistance from businesses.

(2) Provide technical, detailed, and comprehensive assistance to individuals and groups in the State that have interest in or are qualified to be placed in an apprenticeship program. In accomplishing this goal, the Office shall partner with trade or industry organizations, public and private elementary and secondary education schools, and institutions of higher education, with a specific focus on community colleges, throughout the State.

(3) Regularly study other states' actions with regard to their approach to apprenticeship programs and make recommendations to the General Assembly and the Governor on ways that the apprenticeship programs can be improved, expanded, or better suited to meet the demands of an ever-changing modern economy.

(b) The Department shall oversee and certify a tax credit against the taxes imposed by subsections (a) and (b) of Section 201 of the Illinois Income Tax Act, as provided in Section 232 of the Illinois Income Tax Act. The Department shall have the ability to establish an application process, prescribe a specific set of eligibility criteria deemed reasonable and adequate, certify eligible apprenticeship programs, and certify all income tax credits awarded to a qualified apprentice.

(c) The Director of Commerce and Economic Opportunity shall appoint an Assistant Director of the Office of the Apprenticeship Coordinator to oversee the implementation and administration of all functions and duties performed by the Office under this Section.

(d) The Department shall adopt any rules necessary to administer and implement the provisions of this Section, including but not limited to rules concerning the application and certification process for the income tax credit created under Section 232 of the Illinois Income Tax Act.

Section 10. The Illinois Income Tax Act is amended by adding Section 232 as follows:

(35 ILCS 5/232 new)

Sec. 232. Credit for qualified apprentices.

(a) For each taxable year ending on or after December 31, 2022, each qualified apprentice is entitled to a credit against the tax imposed by subsections (a) and (b) of Section 201 of this Act in an amount equal to 100% of the qualified costs incurred by a qualified taxpayer during the taxable year. In no event shall a taxpayer receive a credit of more than $2,000 for any credit under this section. A qualified apprentice may be entitled to no more than one tax credit per taxable year in which he or she incurred qualified costs related to an apprenticeship program certified by the Department of Commerce and Economic Opportunity under Section 605-470 of Department of Commerce and Economic Opportunity Law.

(b) In no event shall a credit under this Section reduce the taxpayer's liability to less than zero. If the amount of the tax credit exceeds the tax liability for the year, the excess may be carried forward and applied to the tax liability of the 5 taxable years following the excess credit year. The credit must be applied to the earliest year for which there is a tax liability. If there are credits from more than one tax year that are available to offset a liability, then the earlier credit must be applied first.

(c) The Department of Revenue, in cooperation with the Department of Commerce and Economic Opportunity, shall adopt any necessary rules in order to implement and administer the provisions of this Section.

(d) For purposes of this Section:

"Qualified apprentice" means an individual who: (i) is a resident of the State of Illinois; (ii) is at least 16 years old at the close of the school year for which a credit is sought; and (iii) is enrolled in an apprenticeship program identified by the Department of Commerce and Economic Opportunity under Section 605-470 of the Department of Commerce and Economic Opportunity Law, and (iv) becomes employed by an Illinois employer.

"Qualified costs" means the amount incurred on behalf of a qualifying apprentice on tuition, books, fees, or other expenses related to enrollment in a qualified apprenticeship program identified by the Department of Commerce and Economic Opportunity under Section 605-470 of the Department of Commerce and Economic Opportunity Law.