State of Illinois
91^st General Assembly
Public Acts

Public Act 91-0930

SB810 Re-enrolled                              LRB9106010PTgc

    AN ACT to amend the Illinois Income  Tax  Act  by  adding
Section 210.5.

    Be  it  enacted  by  the People of the State of Illinois,
represented in the General Assembly:

    Section 5. The Illinois Income  Tax  Act  is  amended  by
adding Section 210.5 as follows:

    (35 ILCS 5/210.5 new)
    Sec. 210.5.  Tax credit for employee child care.
    (a)  Each  corporate  taxpayer  is  entitled  to a credit
against the tax imposed by subsections (a) and (b) of Section
201 in an amount equal to (i) for taxable years ending on  or
after  December  31, 2000 and on or before December 31, 2004,
30% of the start-up costs expended by the corporate  taxpayer
to  provide  a  child  care  facility for the children of its
employees and (ii) for  taxable  years  ending  on  or  after
December  31,  2000,  5%  of  the  annual  amount paid by the
corporate taxpayer in providing the child care  facility  for
the children of its employees.  The provisions of Section 250
do  not  apply  to  the  5%  credit  under  item (ii) of this
subsection.  If the 5% credit authorized under item  (ii)  of
this  subsection  is  claimed, the 5% credit authorized under
Section 210 cannot also be claimed.
    To receive the tax credit under this Section a  corporate
taxpayer may either independently provide and operate a child
care  facility  for  the  children of its employees or it may
join in a partnership with one or more other corporations  to
jointly  provide  and  operate  a child care facility for the
children of employees of the corporations in the partnership.
    (b)  The  tax  credit  may  not  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)  As used in  this  Section,  "start-up  costs"  means
planning,   site-preparation,  construction,  renovation,  or
acquisition of a  child  care  facility.   As  used  in  this
Section,  "child  care  facility"  is limited to a child care
facility located in Illinois.
    (d)  A corporate taxpayer claiming the credit provided by
this Section shall maintain and record  such  information  as
the  Department  may require by rule regarding the child care
facility for which the credit is claimed.

    Section 99.  Effective date.  This Act takes effect  upon
becoming law.