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90_SB0965
35 ILCS 5/211 new
Amends the Illinois Income Tax Act to create for each
employer (i) a wage credit equal to 10% of the first $10,000
and 20% of the second $10,000 paid to Welfare-To-Work
employees up to $3,000 per year per employee for up to 3
years, (ii) a basic skills training credit equal to $15 per
hour, up to 150 hours, for basic skills training provided to
Welfare-to-Work employees up to $2,250 per year per employee
for up to 3 years, and (iii) a support services credit equal
to the cost of providing support services to a
Welfare-To-Work employee up to $2,250 per employee per year
for up to 3 years. Provides that these credits will be
available for tax years beginning on or after January 1, 1997
and ending on or before December 30, 2007. Provides that an
employer may not claim these credits until the employee has
been continuously employed by the employer for a minimum of 6
months. Effective immediately.
LRB9002391KDks
LRB9002391KDks
1 AN ACT to amend the Illinois Income Tax Act by adding
2 Section 211.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Income Tax Act is amended by
6 adding Section 211 as follows:
7 (35 ILCS 5/211 new)
8 Sec. 211. Welfare-To-Work employer's tax credit.
9 (a) For tax years beginning on or after January 1, 1997
10 and ending on or before December 30, 2007, each
11 employer-taxpayer shall be entitled to the following credits
12 against taxes due under this Act:
13 (1) Wage credit. An employer is entitled to a tax
14 credit equal to 10% of the first $10,000 of wages and 20%
15 of the second $10,000 of wages paid to each
16 Welfare-To-Work employee. The maximum credit that may be
17 awarded to an employer under this subsection is $3,000
18 per employee per year for up to 3 years.
19 (2) Basic skills training credit. An employer is
20 entitled to a tax credit equal to $15 per hour, up to 150
21 hours, of basic skills training provided to each
22 Welfare-To-Work employee. The maximum credit that may be
23 awarded under this subsection is $2,250 per employee per
24 year for up to 3 years.
25 (3) Support services credit. An employer is
26 entitled to a tax credit equal to the cost of providing
27 support services to a Welfare-To-Work employee. The
28 maximum credit that may be awarded under this subsection
29 is $2,250 per employee per year for up to 3 years.
30 (b) An employer may not terminate, lay off, or reduce
31 the working hours of an employee for the purpose of receiving
-2- LRB9002391KDks
1 tax credits under this Section.
2 (c) An employer is not eligible for tax credits under
3 this Section for wages, basic skills training, or support
4 services provided to an employee until he or she demonstrates
5 with appropriate documentation that the employee has been
6 continuously employed by the employer for a minimum of 6
7 months, and, if applicable, provided with basic skills
8 training, support services, or both.
9 (d) For purposes of this Section:
10 (1) "Welfare-To-Work employee" means a person who:
11 (i) within 12 months of becoming employed by the taxpayer
12 seeking tax credits under this Section received Interim
13 Assistance, Earnfare, Aid to Families with Dependent
14 Children, or public assistance under an alternative
15 program established by the Department of Public Aid under
16 Public Act 89-6; and (ii) has continuously been employed
17 by the taxpayer seeking tax credits under this Section
18 for a minimum of 6 months.
19 (2) "Basic skills training" means adult basic
20 education programs approved by the Illinois State Board
21 of Education and designed to enable an employee to (i)
22 obtain a minimum ninth grade reading and math skill
23 level, including instruction in English as a second
24 language when appropriate, or (ii) obtain a General
25 Education Degree (GED).
26 (3) "Support services" means child or other
27 dependent care services, transportation subsidies or
28 services, certified drug or alcohol rehabilitation or
29 counseling programs, or other documented employee
30 assistance services.
31 Section 99. Effective date. This Act takes effect upon
32 becoming law.