Illinois General Assembly - Full Text of HB5238
Illinois General Assembly

Previous General Assemblies

Full Text of HB5238  102nd General Assembly




State of Illinois
2021 and 2022


Introduced 1/31/2022, by Rep. Daniel Swanson


35 ILCS 5/217.2 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for each employer taxpayer in an amount equal to $5,000 for each military spouse hired by the taxpayer during the taxable year. Effective immediately.

LRB102 24237 HLH 33468 b





HB5238LRB102 24237 HLH 33468 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
5adding Section 217.2 as follows:
6    (35 ILCS 5/217.2 new)
7    Sec. 217.2. Credit for wages paid to a military spouse.
8    (a) For taxable years ending on or after December 31,
92022, each taxpayer that is an employer is entitled to a credit
10against the tax imposed by subsections (a) and (b) of Section
11201 of this Act in an amount equal to $5,000 for each military
12spouse hired by the taxpayer during the taxable year.
13    (b) For partners, shareholders of Subchapter S
14corporations, and owners of limited liability companies, if
15the liability company is treated as a partnership for the
16purposes of federal and State income taxation, there shall be
17allowed a credit under this Section to be determined in
18accordance with the determination of income and distributive
19share of income under Sections 702 and 704 and Subchapter S of
20the Internal Revenue Code.
21    (c) In no event shall a credit under this Section reduce
22the taxpayer's liability to less than zero. If the amount of
23the credit exceeds the tax liability for the year, the excess



HB5238- 2 -LRB102 24237 HLH 33468 b

1may be carried forward and applied to the tax liability of the
25 taxable years following the excess credit year. The tax
3credit shall be applied to the earliest year for which there is
4a tax liability. If there are credits for more than one year
5that are available to offset a liability, the earlier credit
6shall be applied first.
7    (d) As used in this Section:
8    "Military spouse" means the spouse of an active duty
9member of the Armed Forces of the United States, a member of
10the Illinois National Guard, or a member of any reserve
11component of the Armed Forces of the United States.
12    (e) This Section is exempt from the provisions of Section
14    Section 99. Effective date. This Act takes effect upon
15becoming law.