Bill Text: IL SB0333 | 2013-2014 | 98th General Assembly | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning court costs.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Passed) 2014-08-01 - Public Act . . . . . . . . . 98-0811 [SB0333 Detail]
Download: Illinois-2013-SB0333-Engrossed.html
Bill Title: Amends the Illinois Income Tax Act. Makes a technical change in a Section concerning court costs.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Passed) 2014-08-01 - Public Act . . . . . . . . . 98-0811 [SB0333 Detail]
Download: Illinois-2013-SB0333-Engrossed.html
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1 | AN ACT concerning revenue.
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2 | Be it enacted by the People of the State of Illinois, | ||||||
3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | ||||||
5 | changing Sections 223 and 704A as follows:
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6 | (35 ILCS 5/223) | ||||||
7 | Sec. 223. Hospital credit. | ||||||
8 | (a) For tax years ending on or after December 31, 2012, a | ||||||
9 | taxpayer that is the owner of a hospital licensed under the | ||||||
10 | Hospital Licensing Act, but not including an organization that | ||||||
11 | is exempt from federal income taxes under the Internal Revenue | ||||||
12 | Code, is entitled to a credit against the taxes imposed under | ||||||
13 | subsections (a) and (b) of Section 201 of this Act or the | ||||||
14 | payments due under Section 704A of this Act in an amount equal | ||||||
15 | to the lesser of the amount of real property taxes paid during | ||||||
16 | the tax year on real property used for hospital purposes during | ||||||
17 | the prior tax year or the cost of free or discounted services | ||||||
18 | provided during the tax year pursuant to the hospital's | ||||||
19 | charitable financial assistance policy, measured at cost. | ||||||
20 | (b) If the taxpayer is a partnership or Subchapter S | ||||||
21 | corporation, the credit is allowed to the partners or | ||||||
22 | shareholders in accordance with the determination of income and | ||||||
23 | distributive share of income under Sections 702 and 704 and |
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1 | Subchapter S of the Internal Revenue Code. A transfer of this | ||||||
2 | credit may be made by the taxpayer earning the credit within | ||||||
3 | one year after the credit is earned in accordance with rules | ||||||
4 | adopted by the Department. The Department shall prescribe rules | ||||||
5 | to enforce and administer provisions of this Section. If the | ||||||
6 | amount of the credit exceeds the tax liability for the year, | ||||||
7 | then the excess credit may be carried forward and applied to | ||||||
8 | the tax liability of the 5 taxable years following the excess | ||||||
9 | credit year. The credit shall be applied to the earliest year | ||||||
10 | for which there is a tax liability. If there are credits from | ||||||
11 | more than one tax year that are available to offset a | ||||||
12 | liability, the earlier credit shall be applied first. In no | ||||||
13 | event shall a credit under this Section reduce the taxpayer's | ||||||
14 | liability to less than zero.
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15 | (Source: P.A. 97-688, eff. 6-14-12.)
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16 | (35 ILCS 5/704A) | ||||||
17 | Sec. 704A. Employer's return and payment of tax withheld. | ||||||
18 | (a) In general, every employer who deducts and withholds or | ||||||
19 | is required to deduct and withhold tax under this Act on or | ||||||
20 | after January 1, 2008 shall make those payments and returns as | ||||||
21 | provided in this Section. | ||||||
22 | (b) Returns. Every employer shall, in the form and manner | ||||||
23 | required by the Department, make returns with respect to taxes | ||||||
24 | withheld or required to be withheld under this Article 7 for | ||||||
25 | each quarter beginning on or after January 1, 2008, on or |
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1 | before the last day of the first month following the close of | ||||||
2 | that quarter. | ||||||
3 | (c) Payments. With respect to amounts withheld or required | ||||||
4 | to be withheld on or after January 1, 2008: | ||||||
5 | (1) Semi-weekly payments. For each calendar year, each | ||||||
6 | employer who withheld or was required to withhold more than | ||||||
7 | $12,000 during the one-year period ending on June 30 of the | ||||||
8 | immediately preceding calendar year, payment must be made: | ||||||
9 | (A) on or before each Friday of the calendar year, | ||||||
10 | for taxes withheld or required to be withheld on the | ||||||
11 | immediately preceding Saturday, Sunday, Monday, or | ||||||
12 | Tuesday; | ||||||
13 | (B) on or before each Wednesday of the calendar | ||||||
14 | year, for taxes withheld or required to be withheld on | ||||||
15 | the immediately preceding Wednesday, Thursday, or | ||||||
16 | Friday. | ||||||
17 | Beginning with calendar year 2011, payments made under | ||||||
18 | this paragraph (1) of subsection (c) must be made by | ||||||
19 | electronic funds transfer. | ||||||
20 | (2) Semi-weekly payments. Any employer who withholds | ||||||
21 | or is required to withhold more than $12,000 in any quarter | ||||||
22 | of a calendar year is required to make payments on the | ||||||
23 | dates set forth under item (1) of this subsection (c) for | ||||||
24 | each remaining quarter of that calendar year and for the | ||||||
25 | subsequent calendar year.
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26 | (3) Monthly payments. Each employer, other than an |
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1 | employer described in items (1) or (2) of this subsection, | ||||||
2 | shall pay to the Department, on or before the 15th day of | ||||||
3 | each month the taxes withheld or required to be withheld | ||||||
4 | during the immediately preceding month. | ||||||
5 | (4) Payments with returns. Each employer shall pay to | ||||||
6 | the Department, on or before the due date for each return | ||||||
7 | required to be filed under this Section, any tax withheld | ||||||
8 | or required to be withheld during the period for which the | ||||||
9 | return is due and not previously paid to the Department. | ||||||
10 | (d) Regulatory authority. The Department may, by rule: | ||||||
11 | (1) Permit employers, in lieu of the requirements of | ||||||
12 | subsections (b) and (c), to file annual returns due on or | ||||||
13 | before January 31 of the year for taxes withheld or | ||||||
14 | required to be withheld during the previous calendar year | ||||||
15 | and, if the aggregate amounts required to be withheld by | ||||||
16 | the employer under this Article 7 (other than amounts | ||||||
17 | required to be withheld under Section 709.5) do not exceed | ||||||
18 | $1,000 for the previous calendar year, to pay the taxes | ||||||
19 | required to be shown on each such return no later than the | ||||||
20 | due date for such return. | ||||||
21 | (2) Provide that any payment required to be made under | ||||||
22 | subsection (c)(1) or (c)(2) is deemed to be timely to the | ||||||
23 | extent paid by electronic funds transfer on or before the | ||||||
24 | due date for deposit of federal income taxes withheld from, | ||||||
25 | or federal employment taxes due with respect to, the wages | ||||||
26 | from which the Illinois taxes were withheld. |
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1 | (3) Designate one or more depositories to which payment | ||||||
2 | of taxes required to be withheld under this Article 7 must | ||||||
3 | be paid by some or all employers. | ||||||
4 | (4) Increase the threshold dollar amounts at which | ||||||
5 | employers are required to make semi-weekly payments under | ||||||
6 | subsection (c)(1) or (c)(2). | ||||||
7 | (e) Annual return and payment. Every employer who deducts | ||||||
8 | and withholds or is required to deduct and withhold tax from a | ||||||
9 | person engaged in domestic service employment, as that term is | ||||||
10 | defined in Section 3510 of the Internal Revenue Code, may | ||||||
11 | comply with the requirements of this Section with respect to | ||||||
12 | such employees by filing an annual return and paying the taxes | ||||||
13 | required to be deducted and withheld on or before the 15th day | ||||||
14 | of the fourth month following the close of the employer's | ||||||
15 | taxable year. The Department may allow the employer's return to | ||||||
16 | be submitted with the employer's individual income tax return | ||||||
17 | or to be submitted with a return due from the employer under | ||||||
18 | Section 1400.2 of the Unemployment Insurance Act. | ||||||
19 | (f) Magnetic media and electronic filing. Any W-2 Form | ||||||
20 | that, under the Internal Revenue Code and regulations | ||||||
21 | promulgated thereunder, is required to be submitted to the | ||||||
22 | Internal Revenue Service on magnetic media or electronically | ||||||
23 | must also be submitted to the Department on magnetic media or | ||||||
24 | electronically for Illinois purposes, if required by the | ||||||
25 | Department. | ||||||
26 | (g) For amounts deducted or withheld after December 31, |
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1 | 2009, a taxpayer who makes an election under subsection (f) of | ||||||
2 | Section 5-15 of the Economic Development for a Growing Economy | ||||||
3 | Tax Credit Act for a taxable year shall be allowed a credit | ||||||
4 | against payments due under this Section for amounts withheld | ||||||
5 | during the first calendar year beginning after the end of that | ||||||
6 | taxable year equal to the amount of the credit for the | ||||||
7 | incremental income tax attributable to full-time employees of | ||||||
8 | the taxpayer awarded to the taxpayer by the Department of | ||||||
9 | Commerce and Economic Opportunity under the Economic | ||||||
10 | Development for a Growing Economy Tax Credit Act for the | ||||||
11 | taxable year and credits not previously claimed and allowed to | ||||||
12 | be carried forward under Section 211(4) of this Act as provided | ||||||
13 | in subsection (f) of Section 5-15 of the Economic Development | ||||||
14 | for a Growing Economy Tax Credit Act. The credit or credits may | ||||||
15 | not reduce the taxpayer's obligation for any payment due under | ||||||
16 | this Section to less than zero. If the amount of the credit or | ||||||
17 | credits exceeds the total payments due under this Section with | ||||||
18 | respect to amounts withheld during the calendar year, the | ||||||
19 | excess may be carried forward and applied against the | ||||||
20 | taxpayer's liability under this Section in the succeeding | ||||||
21 | calendar years as allowed to be carried forward under paragraph | ||||||
22 | (4) of Section 211 of this Act. The credit or credits shall be | ||||||
23 | applied to the earliest year for which there is a tax | ||||||
24 | liability. If there are credits from more than one taxable year | ||||||
25 | that are available to offset a liability, the earlier credit | ||||||
26 | shall be applied first. Each employer who deducts and withholds |
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1 | or is required to deduct and withhold tax under this Act and | ||||||
2 | who retains income tax withholdings under subsection (f) of | ||||||
3 | Section 5-15 of the Economic Development for a Growing Economy | ||||||
4 | Tax Credit Act must make a return with respect to such taxes | ||||||
5 | and retained amounts in the form and manner that the | ||||||
6 | Department, by rule, requires and pay to the Department or to a | ||||||
7 | depositary designated by the Department those withheld taxes | ||||||
8 | not retained by the taxpayer. For purposes of this subsection | ||||||
9 | (g), the term taxpayer shall include taxpayer and members of | ||||||
10 | the taxpayer's unitary business group as defined under | ||||||
11 | paragraph (27) of subsection (a) of Section 1501 of this Act. | ||||||
12 | This Section is exempt from the provisions of Section 250 of | ||||||
13 | this Act. | ||||||
14 | (h) An employer may claim a credit against payments due | ||||||
15 | under this Section for amounts withheld during the first | ||||||
16 | calendar year ending after the date on which a tax credit | ||||||
17 | certificate was issued under Section 35 of the Small Business | ||||||
18 | Job Creation Tax Credit Act. The credit shall be equal to the | ||||||
19 | amount shown on the certificate, but may not reduce the | ||||||
20 | taxpayer's obligation for any payment due under this Section to | ||||||
21 | less than zero. If the amount of the credit exceeds the total | ||||||
22 | payments due under this Section with respect to amounts | ||||||
23 | withheld during the calendar year, the excess may be carried | ||||||
24 | forward and applied against the taxpayer's liability under this | ||||||
25 | Section in the 5 succeeding calendar years. The credit shall be | ||||||
26 | applied to the earliest year for which there is a tax |
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1 | liability. If there are credits from more than one calendar | ||||||
2 | year that are available to offset a liability, the earlier | ||||||
3 | credit shall be applied first. This Section is exempt from the | ||||||
4 | provisions of Section 250 of this Act. | ||||||
5 | (i) A taxpayer may claim a credit against payments due | ||||||
6 | under this Section for amounts withheld during the first | ||||||
7 | calendar year ending after the date on which an Illinois income | ||||||
8 | tax return is filed by the taxpayer as required by Section 502 | ||||||
9 | of this Act on which a credit was claimed pursuant to Section | ||||||
10 | 223 of this Act. The credit shall be equal to the amount shown | ||||||
11 | on the taxpayer's Illinois income tax return less any amounts | ||||||
12 | claimed as a credit on the return to offset the taxes imposed | ||||||
13 | on the taxpayer under Section (a) and (b) of Section 201 of | ||||||
14 | this Act, but may not reduce the taxpayer's obligation for any | ||||||
15 | payment due under this Section to less than zero. If the amount | ||||||
16 | of the credit exceeds the total payments due under this Section | ||||||
17 | with respect to amounts withheld during the calendar year, the | ||||||
18 | excess may be carried forward and applied against the | ||||||
19 | taxpayer's liability under this Section in the 5 succeeding | ||||||
20 | calendar years. The credit shall be applied to the earliest | ||||||
21 | year for which there is a tax liability. If there are credits | ||||||
22 | from more than one calendar year that are available to offset a | ||||||
23 | liability, the earlier credit shall be applied first. For | ||||||
24 | purposes of this subsection (i), the term taxpayer shall | ||||||
25 | include taxpayer and members of the taxpayer's unitary business | ||||||
26 | group as defined under paragraph (27) of subsection (a) of |
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1 | Section 1501 of this Act. This Section is exempt from the | ||||||
2 | provisions of Section 250 of this Act. | ||||||
3 | (Source: P.A. 96-834, eff. 12-14-09; 96-888, eff. 4-13-10; | ||||||
4 | 96-905, eff. 6-4-10; 96-1027, eff. 7-12-10; 97-333, eff. | ||||||
5 | 8-12-11; 97-507, eff. 8-23-11.)
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