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| Public Act 096-0101 |
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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 | ||||
changing Section 217 as follows: | ||||
(35 ILCS 5/217)
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Sec. 217. Credit for wages paid to qualified veterans. | ||||
(a) For each taxable year beginning on or after January 1, | ||||
2007 and ending on or before December 30, 2010, each taxpayer | ||||
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 5%, | ||||
but in no event to exceed $600, of the gross wages paid by the | ||||
taxpayer to a qualified veteran in the course of that veteran's | ||||
sustained employment during the taxable year. For each taxable | ||||
year beginning on or after January 1, 2010, each taxpayer 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 10%, | ||||
but in no event to exceed $1,200, of the gross wages paid by | ||||
the taxpayer to a qualified veteran in the course of that | ||||
veteran's sustained employment during the taxable year. For | ||||
partners, shareholders of Subchapter S corporations, and | ||||
owners of limited liability companies, if the liability company | ||||
is treated as a partnership for purposes of federal and State | ||||
income taxation, there shall be allowed a credit under this | ||
Section to be determined in accordance with the determination | ||
of income and distributive share of income under Sections 702 | ||
and 704 and Subchapter S of the Internal Revenue Code. | ||
(b) For purposes of this Section: | ||
"Qualified veteran" means an Illinois resident who: (i) was | ||
a member of the Armed Forces of the United States, a member of | ||
the Illinois National Guard, or a member of any reserve | ||
component of the Armed Forces of the United States; (ii) served | ||
on active duty in connection with Operation Desert Storm, | ||
Operation Enduring Freedom, or Operation Iraqi Freedom; (iii) | ||
has provided, to the taxpayer, documentation showing that he or | ||
she was honorably discharged; and (iv) was initially hired by | ||
the taxpayer on or after January 1, 2007. | ||
"Sustained employment" means a period of employment that is | ||
not less than 185 days during the taxable year. | ||
(c) In no event shall a credit under this Section reduce | ||
the taxpayer's liability to less than zero. If the amount of | ||
the 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 tax | ||
credit shall be applied to the earliest year for which there is | ||
a tax liability. If there are credits for more than one year | ||
that are available to offset a liability, the earlier credit | ||
shall be applied first.
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(Source: P.A. 94-1067, eff. 8-1-06.)
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