Bill Text: IL SB1583 | 2023-2024 | 103rd General Assembly | Introduced
Bill Title: Amends the Illinois Income Tax Act. Creates a credit in an amount equal to 10% of the stipend or salary paid by the taxpayer to up to (i) 5 qualified college interns or (ii) 5 qualified high school interns during the taxable year. Provides that no taxpayer may claim more than $5,000 in total credits under that Section for all taxable years combined. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Introduced) 2024-03-15 - Rule 3-9(a) / Re-referred to Assignments [SB1583 Detail]
Download: Illinois-2023-SB1583-Introduced.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,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Income Tax Act is amended by | |||||||||||||||||||
5 | adding Section 234 as follows:
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6 | (35 ILCS 5/234 new) | |||||||||||||||||||
7 | Sec. 234. Credit for internship employment. | |||||||||||||||||||
8 | (a) For each taxable year ending on or after December 31, | |||||||||||||||||||
9 | 2023, each taxpayer is entitled to a credit against the tax | |||||||||||||||||||
10 | imposed by subsections (a) and (b) of Section 201 of this Act | |||||||||||||||||||
11 | in an amount equal to 10% of the stipend or salary paid by the | |||||||||||||||||||
12 | taxpayer to up to (i) 5 qualified college interns or (ii) 5 | |||||||||||||||||||
13 | qualified high school interns during the taxable year. No | |||||||||||||||||||
14 | taxpayer may claim more than $5,000 in total credits under | |||||||||||||||||||
15 | this Section for all taxable years combined. For partners, | |||||||||||||||||||
16 | shareholders of Subchapter S corporations, and owners of | |||||||||||||||||||
17 | limited liability companies, if the liability company is | |||||||||||||||||||
18 | treated as a partnership for purposes of federal and State | |||||||||||||||||||
19 | income taxation, there shall be allowed a credit under this | |||||||||||||||||||
20 | Section to be determined in accordance with the determination | |||||||||||||||||||
21 | of income and distributive share of income under Sections 702 | |||||||||||||||||||
22 | and 704 and Subchapter S of the Internal Revenue Code. | |||||||||||||||||||
23 | (b) For purposes of this Section: |
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1 | "Qualified college intern" means a student (i) who is | ||||||
2 | enrolled at an Illinois institution of higher education or a | ||||||
3 | vocational technical education program and is seeking a degree | ||||||
4 | or certification of completion in a major field of study | ||||||
5 | closely related to the work experience performed for the | ||||||
6 | taxpayer, (ii) whose internship is taken for academic credit | ||||||
7 | or counts toward the completion of a vocational technical | ||||||
8 | education program, (iii) who is supervised and evaluated by | ||||||
9 | the taxpayer, and (iv) whose internship position is located in | ||||||
10 | Illinois. | ||||||
11 | "Qualified high school intern" means a student (i) who is | ||||||
12 | enrolled in an Illinois high school, (ii) whose internship is | ||||||
13 | taken for academic credit or counts toward the completion of | ||||||
14 | an education program, (iii) who is supervised and evaluated by | ||||||
15 | the taxpayer, and (iv) whose internship position is located in | ||||||
16 | Illinois. | ||||||
17 | (c) In no event shall a credit under this Section reduce | ||||||
18 | the taxpayer's liability to less than zero. If the amount of | ||||||
19 | the credit exceeds the taxpayer's liability for the taxable | ||||||
20 | year, the excess credit amounts may not be carried forward, | ||||||
21 | carried back, or refunded to the taxpayer. | ||||||
22 | (d) This Section is exempt from the provisions of Section | ||||||
23 | 250.
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24 | Section 99. Effective date. This Act takes effect upon | ||||||
25 | becoming law.
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